We all know Warren Buffett, founder and CEO of Berkshire Hathaway, is famous for his investing skills. He’s the guy who, at age seven, as the story goes, borrowed a book titled, “One Thousand Ways to Make $1000,” from a public library in his hometown of Omaha, Nebraska. One thousand quickly became many thousands, then millions, and billions.
Now at age 92, Buffett has a net worth of over $90 billion and ranks number six on the Forbes’ 2025 World’s Billionaire List. He still lives in Omaha, and is known as “the Oracle of Omaha,” a down-to-earth guy with memorable and profitable financial tips.
Here are 5 of his best money tips:
- Take smart risks. Instead of buying any stock that has gone down in price, buy it only if you believe in the company. Is it a company that has a solid foundation and can handle an unpredictable economy and come back strong? According to Buffett, “risk comes from not knowing what you’re doing.” He says the best way to minimize risk–something he highly recommends doing–is to actively educate yourself about finances. “Invest in as much of yourself as you can, you are by far your biggest asset,” he notes.
- Develop positive money habits. Buffett also encourages people to develop positive money habits, no matter what their age or stage of life. Habits such as saving money for a rainy day, and not going into debt. In a 2007 address at the University of Florida, Buffett explained that most behavior is habitual and the “chains of habit are too light to be felt until they are too heavy to be broken.”
- Become debt adverse. Then there are Buffett’s popular financial rules, “Rule 1: never lose money. Rule 2: never forget rule 1.” The point is that it’s hard to bounce back when you are working from a loss. The Oracle of Omaha is debt adverse. He says he would rather make interest work for him than work to pay interest. “If you are smart, you are going to make a lot of money without borrowing.”
- Cash is King. Buffett is unwavering in his advice to keep a good stash of cash in business and personal life. It may be tempting to invest all your cash or spend a lot on something because it’s a good deal and a “once in a lifetime opportunity,” but resist the temptation. Not having cash reserves may be your downfall. You never know when you will need it.
- View money as a long-term game. Buffett once said, “Someone is sitting in the shade today because someone planted a tree a long time ago.” Building wealth, paying off debt, making a profit, saving for college and retirement take time and patience. Remain steady and keep your eyes focused on the end game of financial security.