Advice from Two Men in Their Nineties: Cash, a Surplus, and Investment in Yourself

Sincere advice from two men in their nineties. For ordinary people, Buffett emphasizes three things, in order from least to most important. First, make sure you have some cash available. Second, always earn a little more than you spend. Finally, and most importantly, protect and strengthen your earning power. For ordinary people, the most important investment is therefore not external stocks, but their own capabilities. As Buffett says, nothing is certain: tomorrow is uncertain, and next year is uncertain. Your best defense is your own earning power. Munger offers similar advice: get used to earning less in the future. Also learn to stay away from toxic environments and people, keep learning throughout life, and delay gratification. Do that and you will succeed; fail to do it and you can only pin your hopes on luck. #Dedao Headlines 20230509 ----- Robin’s turn: First, health matters most. It is the only thing that can ensure you are still smiling at the end. Buffett is 92 this year and Munger 99. Throughout the five-and-a-half-hour shareholders’ meeting, both men in their nineties remained fully engaged. Next, some advice for the startup stage: 1. Make sure you have cash reserves. In exceptional times, cash is also what lets you outlast your competitors. Cash is also the last straw that breaks the camel’s back. (Cash is king.) 2. Make sure you earn more than you spend. Otherwise, you are always asking others for help. Too little income and too much spending over a long period will make your startup journey difficult. When you seek investment, you are working for your investors unless they exit. The more investors you bring in, the heavier the pressure you carry. 3. The most important investment is in yourself: in your own and your team’s ability to learn, grow, and earn. The safeguard for continued earning is to build a broad moat around yourself and your business.