Warren Buffett’s name is well-known as a billionaire and investment guru. He advocates for people to manage their finances rationally and is not someone who indulges recklessly, but he understands that there are areas worth spending money on.
Here are three things Buffett recommends splurging on.
According to Kevin Shahnazari, founder and CEO of FinlyWealth, Buffett emphasizes the importance of self-investment. He often advocates for investing in education and self-improvement.
At the 2022 Berkshire Hathaway shareholders’ meeting, Buffett said, “The best investment so far has been any investment that makes you better.”
Shahnazari explains, “This principle emphasizes the idea that improving personal skills and knowledge can yield substantial returns over a lifetime, far exceeding the initial cost.”
Gagandeep Saini, CEO of “We Buy Houses in Central Valley,” adds, “The ‘Oracle of Omaha’ emphasizes investing in personal education and knowledge.”
Saini shares his firsthand experience of how Buffett’s generous investment in education philosophy has brought significant returns. “In the early days of my career, investing in advanced real estate certifications and financial training programs greatly enhanced my ability to identify valuable investment opportunities and make better decisions for clients.”
“Price is what you pay, value is what you get,” Buffett wrote in his 2008 annual letter to Berkshire Hathaway shareholders. While referring to stocks and investing based on company value rather than stock price, Shahnazari points out that this concept applies to other things as well.
“Whether it’s investing in a reliable laptop or high-end software… investing more in superior tools can enhance efficiency and lead to success in one’s personal career,” Shahnazari says. “(Buffett’s) philosophy encourages people to prioritize quality over cost when making significant purchases.”
In his 2010 annual letter to Berkshire Hathaway shareholders, Buffett wrote, “The third best investment I ever made was buying a house.”
Although this statement is 15 years old and may not be entirely accurate anymore, the advice behind it remains relevant: Do not overspend on a house, but make sure to buy one that you can afford.