Thursday, January 19, 2006

Warren Buffett's advice to a young person who's interested in investing

I got started when I was 7. I wasted my life before that. My father worked at Harris, Upham in Omaha. The stock market was open a half day on Saturday then, and I used to go down to his office Saturday mornings. I read a lot-everything I could find on investing and the stock market. When I was 11 I bought three shares of stock. Then I read Ben Graham when I was at Nebraska. My advice is to read everything in sight, and to start young. If you start young and read a lot, you'll do well.

There are no secrets to investing that only some select priesthood knows. Successful investing requires a quality of temperament, not a high IQ. You need an IQ of 125, tops-anything more than that is wasted. But you do need a certain temperament, and must be able to think for yourself. Then constantly look for opportunities. You can learn every day. You can't act every day, but you can learn every day. It's like any game, if you enjoy playing it, you'll do well. But start early, and follow a framework that's been successful.

Notes From The 2005 "Woodstock-of-Capitalists"


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