Wednesday, April 29, 2015

Getting Wealthy - Know the Rules according to Buffett

The truth according to Homer 
When the Old Age Pension was introduced, the government boffins picked an age for you to reach, 65 years old, that was after most people would have died. In this cunning ploy, they promised the masses a life after work that in reality was after nearly everyone had died. I am less than 18 months from that mythical age and I can see myself lasting to 90!!

So, I am looking at advice to help me earn more, keep more, and gain from my investments. Our number one investment, the family home is fully paid for and is appreciating nicely because we live in Perth... one of the worlds most expensive cities... I just heard the Real Estate Institutes Vice President say Perth's median house prices is $550,000 and our humble abode is worth considerably more than that. Perth has grown my 750,000 people in the last 10 years and new house continue to be built at an amazing pace... each seemingly smaller than our house and certainly further from the central business district.

It is said that if you life in Perth and own your own home you are by definition a millionaire.

Today's' rule on investment comes from the book "The Tao of Warren Buffett" written by the ex wife of a Buffett son, Mary Buffett.

Aphorism number 1:

"Rule 1: Never lose money.
Rule 2: Never forget rule No 1"

[An aphorism is a short, pithy statement containing a truth of general importor a statement of self-evident truth.]

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