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How to invest like Warren Buffett: 6 rules of investing to become ultra-rich
Warren Buffett is widely regarded as one of the most successful investors of the 20th century.
Over the years, Buffett, now 94, has shared a wealth of knowledge about the principles that have guided his remarkable success.
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So, how did he achieve such impressive results and become one of the richest people in the world? It was by investing in businesses and following a set of core principles that have consistently served him well.
Here are six of his key investment rules:
- Cash is Never a Good Investment
This principle reflects Buffett’s broader investment philosophy: get out of cash and invest in assets, because the value of cash will likely decrease over time.
As Buffett famously said, “When people say cash is king, I mean, that’s crazy.
Cash doesn’t produce anything, and it’s sure to lose value over time.”
While it’s important to have enough cash for your immediate needs — like oxygen for survival — holding too much cash is inefficient. “We always want to have en
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