How to get rich slowly by Warren Buffett, P.T. Barnum & Einstein – Tap Dancing to Work etc. Books13:52

Published on August 31, 2016

“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” – Albert Einstein. How to use the principle in every day life to get rich slowly.

P. T. Barnum “The Art of Money Getting”:
Skip to 2:42:16 to hear Warren Buffett talk about investing in index funds and the bet he made with the hedge fund at the Berkshire Annual Meeting 2016 (The meeting was 7 hours long!)

Warren Buffett’s public bet on the S&P index over Protege Partners LLC actively managed and expensive Hedge Fund:

You can watch tons of YouTube videos with Warren Buffet where he gives interviews and presentations to college students, and you’ll find him funny, wise and always preaching the exact same principles without fail no matter what’s going on in the world and the date of recording the video.

“Tap Dancing to Work” Carol Loomis (a compilation of interviews and articles about Warren Buffett)

“The Essays of Warren Buffett Lessons for Investors and Managers” Lawrence Cunningham (A compilatino of excerpts from the many letters to shareholders that Warren has written for Berkshire).

Concerning having no debt and a cash buffer also see “Antifragile” by Nassim Taleb.

“A lot of very smart people set out to do better than average in securities markets. Call them active investors.

Their opposites, passive investors, will by definition do about average. In aggregate their positions will more or less approximate those of an index fund. Therefore the balance of the universe—the active investors—must do about average as well. However, these investors will incur far greater costs. So, on balance, their aggregate results after these costs will be worse than those of the passive investors.

Costs skyrocket when large annual fees, large performance fees, and active trading costs are all added to the active investor’s equation. Funds of hedge funds accentuate this cost problem because their fees are superimposed on the large fees charged by the hedge funds in which the funds of funds are invested.

A number of smart people are involved in running hedge funds. But to a great extent their efforts are self-neutralizing, and their IQ will not overcome the costs they impose on investors. Investors, on average and over time, will do better with a low-cost index fund than with a group of funds of funds.” – Warren Buffett

Vanguard S&P 500 ETF
You can buy or sell these at any low cost stock broker online.

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