Warren Buffett's Old Speech On '20-Slot' Strategy Goes Viral: Here's How To Use It For Financial Goals
Even in booming markets, one must invest carefully as if they have limited chances, Buffett says.
Billionaire investor Warren Buffett once shared timeless financial advice with students at the University of Georgia on seizing opportunities wisely. A clip from his old speech has recently resurfaced and gone viral on social media.
In his 2001 address, Buffett explained the "20-slot punch card" method, urging students to make well-thought-out decisions. In his hour-long speech, he emphasised the importance of patience, discipline and a long-term approach to investing.
Explaining that big opportunities are rare and must be grabbed, the Berkshire Hathaway chief emphasised, "Big opportunities in life have to be seized. We don’t do very many things, but when we get the chance to do something that’s right and big, we’ve got to do it."
Buffett emphasised that one does not get 500 opportunities in life and that's why it is essential to select the right ones carefully.
"You would be better off… if when you got out of school….here you got a punch card with 20 punches on it and every big financial decision you made you used up a punch you'd get very rich because you'd think through very hard each….," he explained to the students during his address as a part of the Terry Leadership Speaker Series.
He warned the students against impulsive investing and advised against chasing quick gains or trendy stocks they don’t understand.
"One of you went to a cocktail party and somebody talked about a company you didn't even understand what they did or couldn't pronounce the name, but they made some money last week and another one like it, you wouldn't buy it if you only had 20 punches on that card there's a temptation to dabble if uh particularly during gold markets…In stocks, it's so easy, you know, because you can do it online,” he added.
Even in booming markets, one must invest carefully as if they have limited chances, Buffett told the students.
“If you had a punch card with only 20 punches, you weren't going to get another one the rest of your life, you would think a long time before every investment decision and you would make good ones and you'd make big ones,” the ace investor noted.
According to Buffett, cautious investors using the method probably wouldn't even need all 20 punches in their lifetime.
