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9 Financial Lessons From Warren Buffett and Charlie Munger

December 14, 2022 · Personal Finance
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Photo by Monkey Business Images from Shutterstock

Index funds are a great invention

Even if markets might go crazy, it’s still very difficult to outperform them. Back in 1991, index funds made up a short percentage of overall fund assets. Things have changed a lot since then. As one might believe that Buffett would have been the biggest detractor of index funds, he’s not.

He has praised multiple times index funds as one of the best ways for the wide majority of investors to gain a little bit of exposure to the stock market. He even singled out Bogle for special praise, particularly for launching the index revolution! Buffett even showed that intellectually, you can easily embrace both active and passive investing.

An infographic showing different 'lottery tickets' representing the impact of birth location on financial opportunity.
A golden ticket and line graph illustrate how starting conditions dictate the probability of future financial success.

What it means to win the birth lottery

The last lesson can also apply to life in general, and not only to the little amount of time we spend investing. Buffett emphasized many times just how lucky he was to be born right where he was, and WHEN he was.

As he mentioned, if it was for another time and place, his talent for company assessment would have been probably useless. He has famously called this the birth lottery, so it’s a great reminder of all the luck that unfolded in our lives. And yes, if you’re reading this, you’ve probably been extremely lucky so far.

If you enjoyed reading this piece, you might also want to try: 6 Best Money Saving Tips For Amazon Shoppers

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1 comment on “9 Financial Lessons From Warren Buffett and Charlie Munger”

  1. ANIL BAGAI says:
    February 9, 2023 at 2:44 am

    we do shop Walmart & would like to get the info!

    Reply
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