Buffett has advice for your kids

[rpm]

Buffett has advice for your kids

Billionaire investor Warren Buffett talks entrepreneurship, kids, and financial literacy.

 

[Creag]

A great extract from the article, which I fully agree with:

How do financial literacy and entrepreneurship fit together?

Buffet: Not everybody’s going to be an entrepreneur, but everybody should be financially literate. Financial literacy is a base requirement like spelling or reading or something of the sort that everybody should acquire at any early age.

The financial habits you develop when you are young are going to go with you into your adulthood. But you can’t be an entrepreneur unless you’re financially literate.

 

[Space_Chief]

Like Krugman is financially literate?

Buffet has it made. But for every Buffet there are hundred guys who were finacially literate and have failed or are doing poorly, no better than a regular job. The world can only have so many multi billionaires who "create wealth". The rest of us have to actually get stuff done.

All this wealth creation ... no wonder the US economy is so successful.

 

[Viva]

Like Krugman is financially literate?

Buffet has it made. But for every Buffet there are hundred guys who were finacially literate and have failed or are doing poorly, no better than a regular job. The world can only have so many multi billionaires who "create wealth". The rest of us have to actually get stuff done.

All this wealth creation ... no wonder the US economy is so successful.

You don't think Krugman is financially literate?

An individual doesn't have to become a billionaire to create wealth. Also, why are you implying wealth creation and "actually getting stuff done" are mutually exclusive?

 

[Space_Chief]

You don't think Krugman is financially literate?

No I don't. He's a Keynesian isn't he. That system is not working out. Printing money and creating debt is not going to work out in the longer term. One big Ponzi scheme that is.

An individual doesn't have to become a billionaire to create wealth. Also, why are you implying wealth creation and "actually getting stuff done" are mutually exclusive?

Because most "wealth creation" is just manipulation of money, trade in toxic derivatives, reselling of (bad) debt, speculation, reselling of the same paper gold, borrowing from the reserve bank at negative interest and not lending that money out, using depositors' money without their permission, and so on. Some people make mega bucks off that, the rest of us actually get stuff done.

I can understand doing actual things. Not creating another facebook and selling to for billions but you know creating an actual cancer drug which works, designing a bridge which carries actual traffic which allows businesses to sell things, designing a new integrated circuit which does something, caring for a sick worker so he can get back to work quickly enough, etc.

 

[Viva]

No I don't. He's a Keynesian isn't he. That system is not working out. Printing money and creating debt is not going to work out in the longer term. One big Ponzi scheme that is.

By that definition of financial literacy (being a supporter of "a system that works out"), there are no financial literate people on earth. No system just "works out".

Because most "wealth creation" is just manipulation of money, trade in toxic derivatives, reselling of (bad) debt, speculation, reselling of the same paper gold, borrowing from the reserve bank at negative interest and not lending that money out, using depositors' money without their permission, and so on. Some people make mega bucks off that, the rest of us actually get stuff done.

I can understand doing actual things. Not creating another facebook and selling to for billions but you know creating an actual cancer drug which works, designing a bridge which carries actual traffic which allows businesses to sell things, designing a new integrated circuit which does something, caring for a sick worker so he can get back to work quickly enough, etc.

Can you please link to some studies to support the claim in bold? I'm sure that is the case for some percentage of wealth creation, but most?

I agree with your last paragraph.

 

[Space_Chief]

By that definition of financial literacy (being a supporter of "a system that works out"), there are no financial literate people on earth. No system just "works out".

Maybe there are no financially literate people the way there are numerically or scientifically or philosophically literate people. Or maybe there are. But that proves my point which was to say you can be an 'expert' and you can still get things wrong.

Can you please link to some studies to support the claim in bold? I'm sure that is the case for some percentage of wealth creation, but most?

Since, I haven't specified what "most" means exactly, I don't have to quantify exactly what I mean. Suffice to say, look at the Western economy and what sort of decline it is in.