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Two things make Warren different: (1) he is a professional money manager, which means that he is investing other peoples money. (2) because of (1), he never nee
by coliveira 7y ago
Two things make Warren different:
(1) he is a professional money manager, which means that he is investing other peoples money.
(2) because of (1), he never needed the money he is investing. It is much easier to have long time frames when you're investing money that is not yours.
- xiphias2 7y agoActually the thinking still holds: it’s better to have some cash besides your business if you would really need it that soon, or be prepared to take out money from your business when it’s cash strapped (I’m doing the 2nd actually, but I’m OK with it, and am prepared for it emotionally).
- deleted 7y ago[deleted]
- njarboe 7y agoWarren Buffet still owns 6% of Berkshire Hathaway. Maybe a more correct statement would be "If you have money you don't immediately need to spend, it is much easier to have a long time frame for investing". Hopefully the money in people's retirement accounts is this type of money. Most money managers have extremely short time frame investment horizons and are just looking to get their 2 and 20.
- karaterobot 7y agoEven if that were true, he's still completely right, and this advice is still good! What really makes him different is that he consistently follows the common sense advice the rest of us nod along with and then ignore.