Warren Buffett: How Frugal Should an Investor Be?

February 07, 2022 Warren Buffett: How Frugal Should an Investor Be? 0 Comments

 Warren buffet, isn't just one of the richest person on this planet he's probably also the billionaire with the lowest expense this out there, and he has kind of always been this way. He usually spends three dollars and seventeen cents on breakfast at mcdonald's. If the market is down, he'll pick the cheaper option, he still lives and the same old house that he purchased for just thirty one thousand five hundred dollars more than sixty years ago, heck even used to drive a car with a license plate that read thrifty. At the same time, though, in nineteen, eighty nine were in buffets company spent six point: seven million dollars on a personal jet airplane in nineteen. Fifty two he bought a dale carnegie speaking course, which turned out to be quiet expensive if you're talking terms of opportunity cost but we'll get to that later. Also in nineteen fifty two buffets splurged six percent of his then that's worth on a wedding ring, even cultists purchase of the wedding ring the best investment he ever made. I've never bought a piece of jewelry that I've regretted. Although charlie munger used to gold, the jet airplane the indefensible anyhow, it is clear that the oracle of omaha thinks that sometimes an investor must be willing to pay up even outside of the stock market. So that begs the question: how frugal shoot any investor be in this video? We will boil the topic of deferred gratification down into three separate takeaways. This is the swedish investor, bringing you the best tips and tools for reaching financial freedom through stock market investing, first and foremost, let's discuss why frugality is important for the investor. Here's some warren buffett defines investing investing is forgoing consumption now in order to have the ability to consume more at a later date. Buffets you understood the under, so compounding your own. That's always thought that every dollar today might be ten dollars to some other day in buffets case. That has proven to be immodest assumption and when you think about the mathematics of it's expenses, snowball really quickly, given the stock market returns that buffett has had over the years. What do you think that the cost of that dale carnegie course that he bought at age? Twenty two is in today's terms: if you would have invested the money, it would not be two hundred and ninety one million dollars know that it's no typo this this compound interest at it's finest or worst, depending on how you view it. It may be a bit aggressive to expect that you and I will have the same type of returns, that the oracle of omaha, but let's assume that we can make hoff of what a young warren buffet was able to perform. Then what is the opportunity cost of purchasing a car when you are in your twenties? We're not even talking a flashy car. Here I mean by.