Much of personal finance deals with understanding basic investment principles. That’s why Part 4 of Personal Finance, Turning Money into Wealth is titled “Managing Your Investments” – and in Chapter 11 we take a look at investment basics, then in Chapter 13 we examine investing in stocks, followed by a look at bonds and other investment alternatives in Chapter 14.
The most famous investor in the world, and as a result, the third richest man is Warren Buffett, also known as the “Oracle” or “Wizard of Omaha.” Not only is he a rich and famous investor, but to many he is a folk hero – a totally self-made man – always working from the time he was a child, rising from nothing to the top, all on his own.
Much of Warren Buffett’s wealth stems from his ownership of Berkshire Hathaway, the very large and well diversified company with major interest in GEICO, life insurance, annuity sales and jewelry sales. Every year Warren writes a “letter to the Berkshire Hathaway shareholders” where he gives them an update on who the firm has “done over” the past year along with some personal words of wisdom.
Class Discussion and Assignment:
- Read through “Investing insights from the Wizard of Omaha.” What did you think of his insights on housing and investing? Be prepared to discuss your views with your class.
- Over the years, Warren Buffett has produced quite a few quotable words of wisdom. Read through “Warren Buffett’s words of wisdom.” Which two quotes did you like the best, why? Write a short one-page paper on the two you like best and explain why.