I have chosen to reflect on Warren Buffets book "The snowball".
Warren Buffet is a very well known person and one of the richest in the world. He is born in Omaha, Nebraska in U.S. He is a very talented investor and has built his main fortune by investing in shares. Warren Buffets advice to get rich on stocks is to invest in long-term businesses and businesses that you know well. He buys stocks from companies who he knows alot about and dosen't do complex products. That is why his business portfolio dosen't invest in IT-businesses. Buffet has always used his gut feeling to make his investments. Another advice is not to sell stock as soon as you see the stocks loose value. Even tho Warren Buffet is one of the wealthiest men alive he still lives a sparingly lifestyle and is known for not to waste money on luxury things.
Reflection
I like his investments philosophy very much that you should buy stocks in companies that you know well and in long-term. That will probably help you to have better chance making money on your investments since you have better insight in these line of business. What I think is weird is the fact that he lives like a "normal person" even if he is one of the richest persons on earth. My point is, what's the meaning to be so rich if you don't need the money? By that I mean not that you'll waste money but what's the point for him to have that much money? I mean from the beginning he wanted to make as much money as possible. However, he has said he will donate 85 percent of his fortune to charity after his death which will be the biggest donation ever.
I think money needs to be a motivation factor to be successful like Warren Buffett, but on the other side, I think money will come along the way if you like your job and doing it well. Many people assume Warren Buffett as the world's best investors of all time, and I basically agree. But since the stock marked has incresead dramatically since Buffet started with stocks, it is not surprising that he got the increase in value so many years ago.
The reason why I believe Buffet has succeeded so well with his investment in stocks compared to many others is because, as I said before, that he only invested in companies that the knew was smart to invest in and had knowledge of. Another reason is that he had te patience to allow the stocks to grow for several decades, rather than panic just because a stock price fell sharply in 1 or 2 years. His ”coolness” and his patience has made him one of the world’s richest.
