On Saturday, April 30, 2011, Berkshire Hathaway Inc. held its Annual General Meeting in Omaha, Nebraska. An estimated 40,000 people gathered here to listen to Warren Buffett, 80, Berkshire’s Chairman and CEO.

Below are some key insights from Warren Buffett which I find very relevant to Singapore Investors.


Investing for the average person: “Consistently set aside money in index funds”

Buffett advises that if you “have a day job” and aren’t going to be actively engaged in investing, then “consistently set aside money in index funds.” He asserts that this is the best long-term strategy.

Although his personal net worth is nearly fully invested in Berkshire, he hypothesizes that if he had another job, index funds would be the choice for him too.

Commodity investments: “You’re simply betting”

Buffett has for many years considered gold to be an unwise investment. He believes that when trading commodities, because of their finite nature, “you’re simply betting on the fact that someone else will value that commodity at a higher price in a few years.”

He animatedly repeated a quip that we dig up gold from South Africa, ship it to the U.S. and put it back in to the ground in the Federal Reserve. “Aliens from Mars would think we’re crazy!”

Currency, inflation and purchasing power: “The U.S. dollar will decline”

Buffett commented that he believes “the U.S. dollar will decline” in relation to other currencies but he doesn’t know how rapidly.

He believes all currencies will lose purchasing power over time. This is common when a higher inflationary environment is anticipated.

You can check out here for other insights from Warren Buffett.

About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
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