WARREN Buffett became one of the world’s richest people by adhering to simple doctrines. 

Let’s learn from his simple living and savvy investing.

1. Be frugal

• Multi-billionaire Warren Buffet lives in a modest house.

• He has lived in the same humble house for the last 50 years.

• He does not have a driver to chauffer him around.

• And yes, he had an old car.

• His daughter was so embarrassed by his aged car that she prodded him into buying a new car.

• In case you are wondering, it’s a sedan, not a limousine.

• His motto: live simply. You’d have more funds to invest.

2. Resist the itch to constantly buy or sell stocks

• Have the patience to wait for expensive stocks to come down in price.

• Buy stock with cheap valuations and keep them.

• Have the patience to hold them for a long time.

3. Be a contrarian

• Go against the crowd. Be skeptical of conventional wisdom.

• Be fearful when others are greedy and be greedy when others are fearful.

• Buy when the public is extremely negative; be skeptical when the public is confident.

4. Stick with what you know

• If you don’t understand a company’s product or how it makes money, avoid it.

• Stay within your circle of confidence.

• During the 1990s boom, Buffett avoided tech firms because he did not understand what they did.

• He did not comprehend why they were valued so high.

• He may have seemed naïve… until the bubble burst.

5. Don’t depend on others to say you’re right

• You don’t need constant affirmation about your investment decisions from the stock market.

• You don’t watch TV or the internet telling you every week that you made the right choice.

• Buffett buys disliked value stocks that are ignored and beaten down to low valuation.

(Read next week’s edition of Asian Journal for Part 2)

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Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in Pasadena, California.

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He has 50 years of experience in defending taxpayers audited by the IRS, FTB, EDD, BOE and other governmental agencies.  He is publishing a book on his expertise – “HOW TO AVOID OR SURVIVE IRS AUDITS.” Our readers may inquire about the book or email tax questions at vicsy@live.com.

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