Source: stuff.co.nz
Everyone obsesses over Buffett's track record as the world's greatest investor.
What's even more remarkable about his achievements is that being a squillionaire hasn't changed him much.
He's the perfect role model for living a modest lifestyle while doing what you love. It's fair to say I'm a fanboy.
Here are 10 money lessons I've learned from the Oracle of Omaha:
Start young
The miracle of compounding interest works best with time on your side, and Buffett was a born hustler. At six years old, he bought sixpacks of Coke for 25c and onsold each bottle for 5c.
The savings from various schemes and a paper run led him to buy his first shares at the tender age of 11.
Never lose money
The other benefit of starting young is that mistakes are best made early on, when there's not much at stake.
Buffett's first rule of investing is don't lose money. His second rule?
"Don't forget rule number one."
It might sound obvious, but a lot of people don't grasp this.
If you lose 50 per cent of your cash on a bum investment, your next one needs to double just to break even.
Avoid 'lifestyle inflation'
Warren Buffett's net worth is about $109 billion in kiwi dollars.
But even as his wealth has skyrocketed, his habits have remained the same.
For decades, he has drawn the same salary of just US$100,000.
He still lives in the modest house in Omaha, Nebraska that he bought back in 1958.
His favourite meal? A McDonald's hamburger and coke.
Avoid accumulating stuff
Buffett has deliberately avoided being burdened with the usual toys associated with the billionaires' club. Why? He's acutely aware of the maintenance expenses, depreciation and holding costs.
The one exception - a private jet - he named "The Indefensible" for very good reason.
Never pay the sticker price
Buffett is known for 'value' investing. He looks for great companies at bargain prices.
Even if you're not an investor, the same concept applies to other purchases. With a bit of haggling and shopping around, there's no need to pay the full sticker price for the likes of cars, electronic goods, or even your mortgage.
Avoid the debt trap
When asked the most important thing young people should be doing about money, Buffett's advice was to "stay away from credit cards."
Look longterm
Here's another famous Buffett aphorism:
"The stock market is a device for transferring money from the impatient to the patient."
Most people either get greedy or panic when they see share prices jumping around. They become their own worst enemy.
Buffett buys companies he wants to own 50 years from now, and ignores the noise of the market.
Be boring
There's no such thing as a free lunch. Hyped-up get-rich-quick schemes are doomed to fail.
Buffett has warned against investing in precious metals or currency trading.
He also famously steered clear of both the dotcom boom and bust, and the complex derivative products which caused the global financial crisis.
Invest in yourself
"Invest in as much of yourself as you can, you are your own biggest asset by far," says Buffett.
A cruel twist of fate can strip you of your money or your job. But no-one can take away the talent and skills you acquire.
Give back
We can all make a difference. Buffett has given away billions, and says when he kicks the bucket, 99 per cent is going to charity. Way to combat those old white dude stereotypes.
