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The Oracle of Omaha’s investment advice could help see you through troubled economic times.
Key points
- As inflation surges, Warren Buffett provided some investment advice at the Berkshire Hathaway annual shareholder meeting.
- Buffett suggested investing in yourself is the best thing you can do.
- He provided several reasons why he thinks this is the right approach, including the fact an investment in yourself can’t be taken away from you.
Making sound investments is always important, but that’s the case now more than ever as inflation surges and Americans cope with rising prices.
Unfortunately, it can be difficult to know where to put your money and effort during times of economic uncertainty — but listening to experts can provide helpful insight. And there’s perhaps no greater expert than Warren Buffett. Often called the Oracle of Omaha, Buffett is considered one of the best investors of all time as he’s made billions through his strategic and successful asset purchases.
Buffett recently provided some helpful tips on what to invest in right now at the annual shareholder meeting of Berkshire Hathaway, his holding company. Here’s what he suggests.
Buffett’s investing tip may surprise you
At the 2022 Berkshire Hathaway shareholder’s meeting, Buffett urged listeners to invest in themselves, arguing this is the best course of action when inflation is surging. “The best investment by far is anything that develops yourself, and it’s not taxed at all,” Buffett said.
Buffett suggests developing your skills for a simple reason. “Whatever abilities you have can’t be taken away from you. They can’t actually be inflated away from you.” He provided the example of a doctor or lawyer, who will almost always be able to find someone willing to offer some of what they’ve produced in exchange for the professional services these experts provide.
This advice may be surprising from someone who has spent decades investing in companies, as you might expect he’d suggest putting as much cash into your brokerage account as you can and buying up stocks. But it’s a suggestion Buffett has made repeatedly over the years.
Buffett has followed his own advice
In a 2017 interview, Buffett made a similar suggestion stating, “Ultimately, there’s one investment that supersedes all others: Invest in yourself. Nobody can take away what you’ve got in yourself, and everybody has potential they haven’t used yet.”
Buffett has also given examples of how he put this advice into practice, spending $100 early in his life for a public speaking course to overcome his fear of talking in front of others. The investment he made in himself enabled him to both propose to his wife and to sell stocks thanks to his newfound skills.
How can you follow Buffett’s advice?
Investing in yourself may seem like a daunting prospect, but Buffett has also provided tips on how to put his advice into practice. “Address whatever you feel your weaknesses are, and do it now. Whatever you want to learn more, start doing it today. Don’t put it off to your old age,” Buffett suggested.
The good news is, it’s easier than ever to find online courses, certificate programs, or professional development groups that can help you develop your skills and turn weaknesses into talents. If you want to follow the advice of one of the greatest investors of all time, you may want to consider looking into some of these options ASAP.