In an interview earlier this summer, Berkshire Hathaway CEO Warren Buffett was asked for his top three pieces of advice for Americans who want to grow their savings and keep their money safe. His answers:
1. If it seems too good to be true, it probably is.
2. Always look at how much the other guy is making when he is trying to sell you something.
3. Stay away from leverage. Nobody ever goes broke that doesn't owe money.
People should be especially aware of #2 (literally and figuratively). That's why you don't want to work with a commission-based investment advisor - they usually care more about what they make than they do about what's best for the investor.
One more nugget from this Buffett interview had to do with his views on education. He said, "Generally speaking, investing in yourself is the best thing you can do. Anything that improves your own talents. Nobody can take it away from you. They can run up huge deficits, the dollar can become worth far less, your can have all kinds of things happen. But if you've got talent yourself, and you maximize your talent, you've got a terrific asset."
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