At a shareholder meeting, Warren Buffett was asked: If you were to start over in your early 30s, what would you do differently or the same thing in today's environment to replicate your success?In short, Mr. Buffett, how can I make $30 billion?Warren Buffett answers: Start early. Charlie always said that the most important thing was that we started at the top of a hill with a long ramp and built this little snowball as early as possible. We started snowballing when we were very young. The essence of compound interest is that it snowballs, and the key is to have a long slope, which means either starting at a very young age or living long enough. If I graduate from school today and have $10,000 to invest, I'll start right away. I'll just start reading the company's annual report. I might focus on smaller companies because that would be appropriate to start with a smaller amount, and smaller companies are more likely to be overlooked in the investment space. I mean, you have to start buying a company, or a small part of a company, called **. You have to buy them with attractive **, you have to buy good companies. A hundred years from now, this advice will be the same when it comes to investment. It's that simple. That's right, as Warren Buffett suggests, my guide to early retirement isInvest early
You may say, I don't have the money to invest, I have to spend money on everything, and I don't have any extra money to invest. I would like to say that we can learn first by trial and error, knowledge needs to be accumulated, and cognitive improvement also takes time. When you are old and your children and grandchildren are full, it will be too late to make investments again.
The best time to plant a tree was ten years ago, followed by now. There's never been a better time to start investing, and the sooner you start, the more we can use the power of time to grow financially. Don't delay any longer, start now, save a portion of your salary, invest it and let it work for you. "Rich Dad, Poor Dad" always emphasizes a sentence, don't work for money, let money work for you. You may also say, I don't know how to invest, I don't know how to learn. Warren Buffett once said that investing only requires elementary school math. From my personal experience, it is not mathematics that is more important in investing, but about rationality and common sense. As a simple example, there is a small shop that earns 10,000 yuan a year and sells it to you for 100,000 yuan, will you buy it?
Earn 10,000 yuan a year, and return to the capital in 10 years, and then it will be pure earning, and you may buy it if you pinch your fingers.
If it was sold to you for 1 million, would you buy it?
It will take 100 years to return to the capital, and you will directly return him with a roll of the eyes.
That's common sense.
The company behind a ** vote, the money earned every year, is the profit, and the selling price of the entire company is the stock price * number of shares, that is, the market value. What we need to judge is whether the money that this company makes every year is worth buying with this market value, which is the same as the small shop business we discussed. Investing is simple, but it's not easy. It's simple because you only need common sense to know whether it's expensive to buy or not, and whether you have picked up a cheap one;The difficulty lies in the fact that you need to determine whether the company's annual profits are false or not, and how many years the company can be in business. Judging a company's profit and survival time requires experience and knowledge. This accumulation of knowledge requires a long period of study, tracking and attention, and the more you see, the more you will understand. Moreover, now that there is an index**, you can also practice with the index during the novice learning period. Although we don't have a lot of money, we have a lot of time and can make compound interest run. Finally, my guide to early retirement at 30 is
Invest and start early