Warren Buffett’s Two Rules of Investing | Investor's Guide

Warren Buffett’s Two Rules of Investing reveals a glimpse into his investment philosophy.
One of the most successful investor of all times with an estimated net worth of US$90.2 billion as of September 26, 2018.
Warren Buffett heavily embraces long term over short term investing. He doesn’t discard investments until he’s had it for at least 20-25 years. Among investing legends, Buffett has the longest track record for beating the market. So thinking long term is natural for him and the ability to resist selling has proved to be very successful for him.

Subscribe: ➜ Subscribe: https://bit.ly/Finance101YouTube

This video explains the mindset of investment using Warren's baseball analogy. $1,000 invested in Buffett's Berkshire Hathaway stock in 1964, when Buffett took over the company and shares cost just $19, would be worth about $13 million dollars today.

Warren Buffett, in his Berkshire Hathaway Annual report of 2013 advises “Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund.”

The very same formula was also mentioned in Tony Robbin's Money Master the Game. Index funds are the least risky forms to "beat the market" since it will always rise in the long term, and that’s essentially what you invest in - the market. The S&P 500 contains all the 500 largest companies that trade on NYSE and Nasdaq. Instead of picking stocks individually, you can now own a piece of all of the biggest companies such as Apple, Microsoft and Google.

As for the other 10%, the short-term government bonds is a very low risk low cost and low yield alternative. Short-term bonds offer stability and and consistent gains, however the returns are limited.

Although Buffett spends frugally, he gives generously. He has donated nearly $30 billion — the second-highest amount (following that of Bill Gates).
Related Topics:

How Warren Buffett Got Started Investing:
https://youtu.be/-5JzYjTPfKU

Introduction to Stock Market Investing:
https://youtu.be/bnXwxPdwW-w

Warren Buffett’s Two Rules of Investing:
https://youtu.be/v0pcAjlYXNs

Documentary about the latest financial disaster:
https://youtu.be/ZtWZvm76L8g

Docudrama based on bestselling book by Napolean Hill:
https://youtu.be/S2Ql7szNXF0

Finance 101 playlist:
https://www.youtube.com/playlist?list=PL9QHclcIKl_Zf2j_MhJe1qmEdR9Ap1BE3

Finance 101 playlist (Español):
https://www.youtube.com/playlist?list=PL9QHclcIKl_bgFvBpQo9AHvRSFOfY7URB

Видео Warren Buffett’s Two Rules of Investing | Investor's Guide канала Finance 101