Sunday, 17 May 2015

Warren Buffett’s Best Advice for 2015. Essentially a good review of and reliving the post 2008 GFC.

Published on 26 Dec 2014
Warren Buffett’s Best Advice for 2015

Warren Buffett says:

“My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors — whether pension funds, institutions or individuals — who employ high-fee managers.”


Listening to this video gives you a good review of financial crisis and stock market volatilities post-2008 GFC.  The video is a collection of live interviews of Buffett during this period and gives a good review of the unfolding crisis with Buffett's live responses to the crisis as it unfolded.

Were you frightened out of the market or you embraced the market during this period?

Warren Buffett shared his thinking of the stock market and other asset classes during this crisis period generously, and today, in 2015, his approach and philosophy are sound, safe and first class;  proven to be absolutely right and rewarding.

A lot of great lessons to learn in this video.

For those looking at buying first single family home, here was Buffett's advice in 2012.
This was the best time for you to buy.   Maybe different in 5 years from then.
Certain conditions need to be fulfilled:
- you should know where you are going to live.
- you must have a reasonable income.
- single family home can be bought with a 30 years mortgage at low interest rates of 4%.

Don't buy:
- if you are going to move in 6 months time.
- if you are uncertain about your job situation.

These are simple and common sense first class advice from Buffett.

Buffett is optimistic that single family homes will double in value over a very short period during his interview.
He is tempted to do this business but it would be extremely difficult to manage so many single units of homes and also dealing with so many people with difficult behaviours.

(@1.40 of video)

Additional note:

For those who are in their 50s or more, you may ponder over this particular fact.  Buffett first invested in shares at the age of 11 years old.  His present networth is about $70 billion.   1% of his wealth were acquired in the first 50 years of his life; the other 99% after his 50th birthday.

Once you have your initial capital and is on the growth path, the power and magic of compounding over many years can do wonders.

Always buy income generating assets as they will definitely beat any non-income generating assets over the long term and less subjective to prices offered and set by another based on sentiment (speculating).

Buffett:  When the market is down, I'm happier buying

Buffett:  Stock market, generally, is best place to have money

Warren Buffett started investing at 11yo and he regrets not starting earlier!!! What is also not widely known is that he made 95% of his money after the age of 65 years old!!! There is hope for us, old folks. Hahaha. But then again, we can't all be Warren Buffett.

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