hahaha, I love it! Obviously I'm a HUGE Buffett fan! When my husband and I made a cross country trip in 2020, we detoured through Omaha so I could get a picture in front of Kiewit Plaza. (And I looked up and said...just think he could be up there right now picking his next investment 😂 - pretty unlikely since it was a Saturday)
@@ErinTalksMoney always great content! I would love to see a net worth by percentile video in 2024 that also has has separation in liquid assets and home equity! Congratulations on the little one! We have number 2 coming in April! Thanks
I have an older brother named Andy, too! He was actually the one who convinced me to major in economics. Now I have a bachelor's in economics and I feel so lucky to have such knowledge! Three cheers for brothers named Andy! Tack! 😊🙏🏻
Yay for all the Andy's! (also, when we were kids by brother would alway take all the Andies mint because he said they all had his name on them 😂...but I wanted some! haha)
I'm curious how many months will your emergency fund will cover, would you mind sharing? I personally have set aside 3 years of expenses in a HYSA, a little too much? maybe, but I'm still investing every week and will reinvest a years worth of my cash set aside if the market drops. What I will do is if the market drops 20% from my fund's high I will double the amount I normally contribute and if it drops 30% I will triple the amount up to a year's worth in my emergency found.
Inspirational video, thank you Erin! I'd like to read the Biography. Which biography of Buffet do you refer to? I think there's more than one and there isn't one on your Amazon list (yet?)
The Snowball! It was a fascinating read about Buffett…but to warn you it is quite long. 😊 I will certainly get it added to my list, but you probably know I’m a huge advocate for libraries as well!
I think you missed a major point of his last letter to shareholders. It's not about chasing winners, it's about investing in the whole market (passive investing, index) and staying invested. Aren't the companies that are benefiting from the AI boom a major part of the index? 🙂
BRK invests in things like bricks, trains, Coca Cola, but they do have a lot of Apple stock. You might not think Apple does much with AI, but check back next year. There's a Neural Engine in every Apple product now, and most people want to keep their data on-device.
The cash reserves remains the one thing that I keep adjusting. It is easier to justify letting cash set in reserve when you can earn 3% or more. I have to say I've been dipping into my emergency fund lately more than in the past due to my employer cutting overtime hours at work. I don't complain, I just adjust my finances, but my long term strategy remains the same.
Thank you for keeping it real with us. We're all getting hit over the head with these prices, the good thing is being in a position to pay these prices. I feel really bad for those who are not in the position to pay for their basic needs.
I always enjoy reading Warren's annual letters and this year was predictably very insightful and wise. You did a good recap and discussion for those who may have not already read it. Thanks for all you do with your channel Erin, keep up the good work!! Larry, Central Valley, Ca.
Before you get to the principles of investing that Warren teaches, you have to master the principles of living beneath your means, so you actually have positive cash flow you can then funnel toward investing.... Don't spend your time micro-managing (ie. chasing winners). Think broad, big picture, long term. Live within your means, focus on getting a bigger shovel, and funnelling more money toward your indexed investments... Someday, I hope to end up like Bertie (although at a MUCH smaller scale...lol)
I can't speak enough about the importance of having cash (emergency fund). I realized an unexpected 8,000 expense last year when I needed a new air conditioner installed at my house. Thankfully, I had an emergency fund. After the new AC was in place, my short term priority for the rest of the year was to gradually replenish that emergency fund.
I'm new to all this. I'm trying to build wealth while also struggling. My job isn't enough. I'm feeling helpless and hopeless as every thing go's up and my hours go's down with my paycheck. I've managed to stay afloat each month by a nose.
When I was young it cost over a hundred bucks to call a broker and make a trade here in Canada. So it wasn't really feasible for a modest income earner to even get into the market. Kids these days have it made.
I suppose if one attempts to correct someone else's pronunciation, then one ought to correctly pronounce the word, too. Warren and Charlie pronounce Berkshire like sher not sheer.
Long term thinking isn't in fashion everyone wants overnight wealth, look at Buffet's success and you'll see the answer is very easy and very simple but requires a huge amount of patience...master this and teach it to your kids and you'll elevate your families for generations to come...good luck all
Invest early (young age) and often… I am investing 5k a month since I can afford it. I’ve told friends and family to invest $50 or $100 a month… whatever they can. That compounding interest becomes huge after a while!
Thank you. I appreciate that you remind us that it is never too late. 3 months ago we opened a taxable brokerage account and have been adding to it on a regular basis. I put $100 to $150 at a time, average $700/month. I have been learning how this works and really enjoying it. Mostly ETFs but I'm buying one single stock using fractional share purchases. As someone that in the past was not very adult with our money sometimes when I'm tempted to purchase something I stop dead in my tracks and instead put some money into the account. I never feel guilty or regret saving or investing.
I have avoided index funds and mutual funds and actually invest in individual stocks. This is so I can stay away from the herd and avoid being trampled in any stampedes. Key take-away for me is to "buy a wonderful company at a fair price". I look at the financial statements and choose companies where the management are willing to do the right thing now for the future of the company and not the flashy quick fix or attempt to hide the any issues they may be having. In the end, the price of the stock never really matches it's value. Popular companies are boosted and boring companies get ignored.
Sadly, true. Which just emphasizes the importance of TIME and starting asap. You can always leverage your time, warp it a bit by targeting a higher savings rate, paring back expenses so you can save/invest more, but eventually, you get to the point that your runway's just too short... Don't wait.
