Warren Buffet retiring at 94: Three lessons we can learn from the investment icon

702’s Relebogile Mabotja speaks with Wendy Myers, Head of Securities at PSG Wealth.

Listen below:

Warren Buffet, who at one stage was the richest man in the world, is considered one of the most successful investors ever.

He built up Berkshire Hathaway from a failing textile maker into an investment giant worth $1.16 trillion.

“He is an icon when it comes to investing.”

- Wendy Myers, Head of Securities at PSG Wealth

Every year he would send out a letter with easily digestible financial insights.

As he prepares to retire at the age of 94, here are some of the financial lessons we can learn from him.

Do your homework:

A major principle Buffet lives by is knowing and understanding what you are investing in.

He believes that you cannot invest successfully if you do not understand the company or product you are putting your trust in.

Buffet is also famous for starting his day by reading company reports and financials, showing how seriously he takes his investments.

Take the long-term approach:

When it comes to investing, patience is key to achieving results.

Being patient, weathering the storms, and not jumping to follow the crowds are essential if you want to see real growth.

Buffet says the best returns came after the age of 60, because he let his investments mature.

“He purchased his first share at the age of 11. He has effectively got 82 years of investment experience, so clearly he is someone we should listen to.” 

- Wendy Myers, Head of Securities at PSG Wealth 

Live simply:

If you want your money to go far, you cannot waste it on frivolous purchases.

Buffet still lives in the same house he bought in 1958, and uses a flip phone rather than chasing the latest technology.

He recommends living below your means, so your investments grow instead of your expenses.

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