Letter from Warren Buffet

Note: Warren Buffet, the world renowned financial guru shares some of his thoughts. I feel that this is excellent advice and worth reading, especially in this time of financial crisis.

We begin this New Year with dampened enthusiasm and dented optimism. Our happiness is diluted and our peace is threatened by the financial illness that has infected our families, organizations and nations.

Everyone is desperate to find a remedy that will cure their financial illness and help them recover their financial health. They expect the financial experts to provide them with remedies, forgetting the fact that it is these experts who created this financial mess.

Every new year, I adopt a couple of old maxims as my beacons to guide my future. This self-prescribed therapy has ensured that with each passing year, I grow wiser and not older. This year, I invite you to tap into the financial wisdom of our elders along with me, and become financially wiser.

Hard work: All hard work brings profit; but mere talk leads only to poverty.
Laziness: A sleeping lobster is carried away by the water current.
Earnings: Never depend on a single source of income.
Spending: If you buy things you don’t need, you’ll soon sell things you need.
Savings: Don’t save what is left after spending; spend what is left after saving.
Borrowings: The borrower becomes the lender’s slave.
Accounting: It’s no use carrying an umbrella, if your shoes are leaking.
Auditing: Beware of little expenses; a small leak can sink a large ship.
Risk-taking: Never test the depth of the river with both feet.
Investment: Don’t put all your eggs in one basket.

I’m certain that those who have already been practicing these Principles remain financially healthy. I’m equally confident that those who resolve to start practicing these principles will quickly regain their financial health.

Let us become wiser and lead a happy, healthy, prosperous and Peaceful life.

Warren Buffet


  1. Sreejith Kumar said,

    March 1, 2009 at 12:06 am

    Good one AL! But I am a bit confused about the point on Earnings. Never depend on a single source of income? 🙁

  2. Alexis Leon said,

    March 1, 2009 at 7:59 pm

    Sreejith: What is the confusion. It is always better to have multiple sources of income, so that if something happens to one source, one always have a fall back option. Same thing as not putting all the eggs in one basket…

  3. Thulasy Mary Elizabeth said,

    March 2, 2009 at 6:47 am

    When I read this post, it reminded me of a DVD I watched sometime last year ” Buffett & Gates Go Back to School” – A DVD really worth watching.

  4. madhu said,

    March 4, 2009 at 3:25 pm

    hi.. alexis sir.. i hope you are fine.. nice topic.. especially explanation for “Risk Taking” is opt.. keep going well.. be well.. do well..