[INFOGRAPHIC] 10 Financial Lessons We Can Learn from Warren Buffett

By Tomas H. Lucero

Only 4 in 10 Americans say they are financially literate. 30 percent of Americans can’t even answer the question “Are you financially literate?” correctly. This means that too many Americans don’t think about how they spend their money, have no idea how to invest in the stock market and don’t have a retirement plan; among other financial skills.

This is, to say the least, strange in the richest nation humanity has ever seen—that the majority of its citizens can’t, or won’t, design a monthly budget and stick to it. In such a nation, presumably with the most number of rich people in the world, it would seem that these people are sharing their knowledge with the rest on how to make one’s money grow, or at the very least not shrink.

There are plenty of rich Americans, however, who do share their knowledge. One of these is Warren Buffett, who also happens to be one of the richest men on the planet.

When it comes to investing in the stock market, one of Buffett’s cardinal rules is to own your investment. Not just put your money in it, hope it climbs in price and walk away until you can make a profit of it. No, instead invest and think of yourself as an owner of the company.

The infographic also tackles Buffett’s beliefs about risk-taking. It turns out that, despite being citizens in the home of the brave, Americans in general are averse to risk-taking. We invest in bonds, banks and gold instead of stock because we think they're safe. Buffett however, believes that stocks outperform all of these and are safer too.

Related Story: Human Capital: A Smart Investment

Related Story: How to take risks in business and win


10 Financial Lessons We Can Learn from Warren Buffett


Featured Articles

Top 10 wealthiest billionaires in the US

Business Chief provides a rundown of the top 10 richest billionaires in the US based on the most recent Forbes 400 list, which is published every year

Top 10 easiest countries in the world to do business

Business Chief takes a look at the top 10 places in the world to do business, according to TMF Group's Global Business Complexity Index (GBCI) for 2023

Patagonia Chair Charles Conn on becoming an imperfectionist

Entrepreneur and Patagonia Chair Charles Conn talks to Business Chief about rethinking strategy amid uncertainty, and why an imperfectionist approach works

Top 10 most valuable brands in the world – Amazon to TikTok

Corporate Finance

Four priorities for new Twitter CEO Linda Yaccarino

Leadership & Strategy

Top 10 shifts transforming organisations – McKinsey & Co

Leadership & Strategy