What is the single most important lesson you have learned from the current financial crisis?
Here is what I’ve learned:
You cannot trust media, gurus, financial advisors, real estate agents, banks, mortgage brokers, etc. There is way too much noise out there in the market. And a lot of people are trying to make money out of you. To take care of your hard earned money, you must be financial literate, and learn to think critically about news, financial products, economics, etc.
It’s not enough to be well-informed. You need to think critically about information and act accordingly.
Too bad, frequently our education system and media "give us a fish, but don’t teach us how to fish".
I recently read a very interesting book. Although the book is about worldly wisdom, I think it’s one of the greatest investment books of our time. It teaches you how to think critically and independently.
The book is recommended by Warren Buffet at Berkshire shareholder’s annual meeting.
It’s written by one of the greatest investors of our time — Warren Buffet’s long-time business partner.