- Buy assets, not liabilities.
- Buy things that make money for you: stocks, real estate. Don’t buy things that don’t make money: clothing, fancy cars, etc.
- Don’t buy assets you don’t understand.
- When your friends at the bank try to sell you a complicated financial instrument that you don’t understand, chances are it’s a bad apple.
- Make more money, not save more money.
- No one increases their net worth by saving. They increase by making more money.
- People who look rich are poor. People who look poor are rich.
- People who drive fancy cars and flaunt their supposed wealth are probably not that wealthy.
“I never invest in anything that I don’t understand” – Warren Buffett