Warren Buffett Thinks College Students Should Avoid Credit Cards
Youngsters wanting to make money got some valuable advice from Warren Buffett who was visiting his local Dairy Queen for the launch of the new Girl Scouts Thin Mint Blizzard earlier this month. One of his suggestions to the young girls was to avoid credit cards - that's advice some adults would also be wise to follow.
Surrounded by a group of Girl Scouts in his hometown of Omaha, Buffett offered this tip for college students: "The biggest suggestion I have is to avoid credit cards. Interest rates are very high on credit cards. Sometimes they are 18 percent. Sometimes they are 20 percent. If I borrowed money at 18 or 20 percent, I'd be broke.... So if I had one piece of advice for young people generally it would be to just avoid credit cards," he said.
And what advice does Buffett have for a new investor? "I would do a lot of reading before I invested," he replied. "In other words I would prepare for it. I wouldn't jump in the water until I know how to swim.... I read every book the Omaha Public Library had about investing by the time I was 11."
On qualities Buffett looks for in employees? "The biggest thing I look for is if they have a passion for whatever they are going to do," he said.
Vanguard Group Founder Jack Bogle Tells Investors to Stay the Course
The Dow dropped more than 230 points today as concern over financials continued. The Vanguard Group Founder Jack Bogle told investors to change nothing in the video from Fox Business below. He dismissed the idea of "doubling down" and said investors should focus on staying the course. Bogle also said the market today is being driven by speculation.
An article from U.S. News published on Yahoo's website says that many baby boomers are concerned about retirement. Even those with $1 million saved for retirement are getting more concerned. This concern is growing as the economy worsens. The article says a survey from Bell Investment Advisors and Opinion Research Corp. found that nearly 30% of 60-year-old baby boomers with investable assets of $1 million or more say they "feel more financial stress now than six months ago."
But even millionaires aren't immune to making irrational investment choices as the media endlessly report a looming recession. Some 23 percent of affluent boomers say they are planning to change their investment strategy in response to a potential recession, with 69 percent seeking more conservative investments like money market funds and bonds. Only 21 percent said they would invest more in stocks or stock mutual funds.
That could be a mistake, says Jim Bell, founder and president of Bell Investment Advisors. In many cases, these conservative investments barely keep pace with inflation, especially as interest rates on consumer products like certificates of deposit have dropped with each Federal Reserve cut in interest rates.
"Bonds and cash have the false allure of safety since their principal fluctuates less than that of equities, but equities along with commodities will better allow boomers to maintain their standard of living over decades," Bell says. "Boomers must learn to live with the volatility of equities if they want to keep their purchasing power intact."
You can find a couple retirement calculators online here and here. What is probably fueling concerns is the rising prices in basics like gasoline and food. Inflation like this can quickly overtake the pace of a slow-growing CD. Even a solid investment strategy can be thwarted by rapidly growing inflation. This is why the government needs to get a handle on it and get these fuel costs in check.
Youngsters wanting to make money got some valuable advice from Warren Buffett who was visiting his local Dairy Queen for the launch of the new Girl Scouts Thin Mint Blizzard earlier this month. One of his suggestions to the young girls was to avoid credit cards - that's advice some adults would also be wise to follow.
