Buffett's Tips

Preface xv
 
Acknowledgments xix
 
Chapter 1: Who is Warren Buffett? 1
 
Introduction 1
 
Buffett the Teen 2
 
Who Are We to Write This Book? 3
 
What is Financial Literacy and Why Does It Matter? 4
 
Some Fundamental Buffett "Tips" 5
 
Buffett's Work Ethic 7
 
Buffett Has Spent a Lifetime Learning 8
 
Why is Buffett Happy? 10
 
Improve Your Communication Skills and See Your Lifetime Earnings Increase 50% 12
 
Acting with Integrity is the Right Thing to Do and Good for Business 13
 
Buy Low, Sell High 14
 
Buffett Doesn't Succumb to Peer Pressure: The Inner Scorecard 15
 
Buffett's Fallback Career--Comedian 17
 
Buffett's Lasting Legacy: Philanthropy 18
 
Buffett's Tips from Chapter 1 19
 
References 20
 
Chapter 2: Investment Fundamentals According to Buffett 23
 
Introduction 23
 
The "Miracle of Compound Interest" Explained 24
 
Trade-Offs: A Fundamental Principle of Life 27
 
The Saint Petersburg Paradox: A Lesson on Risk and Return 29
 
Risk and Return: The Evidence 30
 
Diversification: One of the Few Free Lunches in Life 32
 
Supply and Demand Determine Price 33
 
Summary on Financial Fundamentals 35
 
Buffett's Tips from Chapter 2 36
 
References 36
 
Chapter 3: Bank Accounts, Debit Cards, Credit Cards, and Your Credit Score 38
 
Introduction 38
 
Insured Bank Deposits 38
 
Savings Accounts and Certificates of Deposit (CD) 40
 
Checking Accounts and Electronic Bill Payment 42
 
Parts of a Check 43
 
Balancing a Checkbook 44
 
Debit Cards and Automated Teller Machines (ATM) 45
 
Credit Cards and Charge Cards 46
 
Apps to Send Money: PayPal, Venmo, Zelle, Apple Pay, Android Pay, and so forth 49
 
Your Credit Score: A Report Card of Your Financial Responsibility 50
 
Personal

JOHN M. LONGO is a Professor of Profes- sional Practice in the Finance and Economics Department at the Business School of Rutgers University. He has also been visiting professor of finance at EMBA-Global Asia-the joint Executive MBA program of Columbia Business School, London Business School, and The University of Hong Kong. He has more than 25 years of professional investment experience and is currently serving as Chief Investment Officer of Beacon Trust, a $3+ billion registered investment advisor. A Chartered Financial Analyst (CFA), Professor Longo earned an MBA in Finance and a PhD in Finance from Rutgers, where he also received his BA degree.
 
TYLER J. LONGO is a high school student in the Princeton, NJ area. He has completed the Introduction to Business, Finance, and Economics program for high school students at Columbia University and additional coursework in AP Economics, AP Statistics, and Financial Literacy. He has become financially literate in large part due to his work on this book.