Warren Buffett was crowned last year on the Forbes list as the fifth richest person in the world. The 92-year-old businessman is the executive director of the American company Berkshire Hathaway and is commonly known as the “Oracle of Omaha”, his hometown, for being one of the most successful investors of all time.
In addition, he also stands out for his philanthropy and is that he has promised to donate more than 99% of his wealth. To date, she has donated more than $49 billion to charitable causes, primarily to the Bill & Melinda Gates Foundation and the organizations that run his children.
But his philanthropy and million-dollar net worth aren’t the only reasons he’s known for. The businessman publishes a letter to Berkshire Hathaway shareholders every year where he reveals some advice and keys that they must take into account to continue expanding his capital. The last one has caused a stir because of his teachings to the youngest when it comes to saving or investing his money.
Changing attitudes about saving and generational wealth
The letter, which consists of 11 pages, reveals that the key is the change of attitude in relation to savings and generational wealth. “A common belief is that people decide to save when they are young, hoping to maintain their standard of living after retirement. According to this theory, the assets that remain at death will be left to family, friends or charity,” he says in this letter. .
However, for the businessman and his partner, Charlie Munger, the experience has been very different. “We believe that Berkshire’s individual holders are mostly of the ‘once save, always save’ type. The funds through expenditures are intended to improve the lives of many people who are not related to the original benefactor,” the publication collects.
For this reason, he believes that the key and the type of shareholders he wants to attract to his company is the philanthropic saver type, who, once he dies, can allocate part of his wealth to other projects that benefit the world. These values also match those of Buffet himself, who, as we said before, tends to donate a large part of his wealth to many social causes. In addition, he concludes the communication with a series of recommendations, among which are:
Don’t abandon a sinking ship if you can swim to another that is seaworthy. A great company continues to work when you are no longer there; a mediocre company doesn’t do that. Having a great attention span and concentration for a long time is a great advantage. There is no 100% sure thing when it comes to investing. Therefore, leverage is dangerous. Don’t count on getting rich twice over.