Wednesday, June 24, 2009

Warren Buffett Gives Advice to Girl Scouts at Dairy Queen

Surrounded by a group of Girl Scouts in his hometown of Omaha, Neb., Buffett offered this tip for college students:

“The biggest suggestion I have is to avoid credit cards. Interest rates are very high on credit cards. Sometimes they are 18 percent. Sometimes they are 20 percent. If I borrowed money at 18 or 20 percent, I’d be broke… So if I had one piece of advice for young people generally it would be to just avoid credit cards.”

And what advice does Buffett have for a new investor?

“I would do a lot of reading before I invested. In other words I would prepare for it. I wouldn’t jump in the water until I know how to swim… I read every book the Omaha Public Library had about investing by the time I was 11.

On qualities Buffett looks for in employees?

“The biggest thing I look for is if they have a passion for whatever they are going to do.

1 comment:

musicwhiz said...

Well, he's right about credit card debt. I for one cannot fathom how anyone can be willing to pay 24% per annum on a loan. It's hard to even get 7-8% return on investment for goodness sake ! Haha.

As for reading, yes I do agree we all need a good framework and theoretical grounding before we venture into investing, otherwise it's like trying to fly a plane without any training !