Bill Gates’ 10 Financial Tips for Being a Smart Investor

Manage the personal finance can be very confusing and even scary, and necessary knowledge to do so successfully they are not usually acquired quickly or easily. But if one manages to learn and lay the foundations of the keys to a good personal economy, maybe get to obtain the famous and desired economic stability that everyone wants.

To understand a little more, without having to turn to extensive economics books, it is always a good idea to listen to the experts who today are those who know the most about the subject and have years of experience in investment and finance: Gates is the right person.

Bill Gates, founder and creator of Microsoft, has long since retired from the company’s board of directors and today is dedicated to the Bill & Melinda Gates Foundation: the world’s most profitable private charity organization. These are the 10 tips that the tycoon recommends for the care of personal finances.


Gates maintains that his years in college were not only the most beautiful of his life, but they also helped him prepare for the future, and of course, education is extremely important to the Microsoft founder.

On a Reddit forum, a user asked “What is your best personal financial advice for people who earn less than $ 100,000 a year?” To which Gates replied, “Invest in your education.”

It is important not only because a college degree opens doors in today’s society, but also because being surrounded by intelligence, studies, and that academic energy is extremely beneficial for the mind.

In a 2007 graduation speech about his time at Harvard, Gates said, “It could be exhilarating, intimidating, sometimes even daunting, but always challenging. It was an incredible privilege, and although I left early, my years transformed into Harvard, the friendships I made and the ideas I worked on. “


According to Gates’ philosophy, if one does not allow himself to be carried away by criticism and takes it as something positive instead of something negative, it can be very useful to learn not to make the same mistakes a thousand times and to begin to find solutions to problems. .

In his book “Business in the Digital Age,” he wrote: “Listen to your customers and take their bad news as an opportunity to turn your failures into the concrete improvements they want. You should examine customer complaints more often than not. the finances of the company “.

On the other hand, in a post on his blog Gates Notes he also said: “In many companies, bad news travels very slowly, while good news travels fast. We try to fight against that.” He also explained that his Microsoft team was reporting the positives to him and not the negatives, to which he said, “I wanted to catch the negative trends early, when we could still do something about it.”


For Gates it is always better to have an overview of things than to focus only on the specific things. On a day-to-day basis, small details and mistakes may seem like the end of the world, but when you look at the big picture they don’t seem to matter that much.

This becomes more relevant at the corporate and business level, for which Gates really advises taking an overview, which he says he learned from Warren Buffett, who acknowledges that “he has a whole framework for business thinking that is very powerful. “

On Buffett’s philosophy, Gates explained that he “talks about looking for the pit of a company – its competitive advantage – and whether the pit is shrinking or growing. He says that one shareholder has to act as if he owns the entire business. , looking at the future profit stream and deciding what it’s worth. “


Speaking to Stanford University at a graduation event in 2014, Gates said, “Optimism is often dismissed as false hope. But there is also false hopelessness.” Optimism is extremely important to him when solving problems.


Generally speaking, success is always meant to be something good, something positive, while failure is understood as something negative. However, Gates argues that the best learning comes from making mistakes and says mistakes are very important for progress. In his book “Road to the Future,” he wrote: “Success is a lousy teacher. It seduces smart people into thinking they can’t lose.”


In his 2013 annual letter to the Bill & Melinda Gates Foundation, Gates said: “In the last year I have been amazed time and again how important measurement is to improving the human condition. Amazing progress can be made if you establish a clear goal and a measure is found to drive progress toward that goal. “


As one of the greatest and most active philanthropists today, it is not surprising that one of the pillars of Bill Gates’ philosophy is sharing his wealth. On many occasions, he himself has admitted how important money is for the world to function and to have economic freedom, but he also confessed that he sets limits: “I can understand that you want to have millions of dollars; there is a certain freedom, a Meaningful freedom, that comes with that. But once you get a lot further, I have to tell you: it’s the same hamburger, “he said during a speech at the University of Washington in 2011.


In a 2019 speech, Gates said, “It’s not such a good idea for your kids to give them a ton of money.” And he added: “After observing super-rich families a lot, this is my recommendation: leave the children enough so that they can do anything, but not so much that they can do nothing.”


Again, as a good philanthropist, Gates’s gaze is on the world and its needs. Along with his ex-wife, Melinda Fench, during a speech to a 2020 graduating class, they said, “You inherit a world that has already shown that progress is possible. A world that it rebuilt after the war, that defeated smallpox. , which fed a growing population and allowed more than one billion people to lift themselves out of extreme poverty. “

And they recalled: “That progress did not come about by accident or fate. It was the result of people like you who pledged that, whatever they did with their lives and careers, they would contribute to this shared mission of pushing us all forward.”


Activating, training, and educating the mind is critically important to success in any sense, according to Gates’ philosophy, and one of the best ways to do this is through reading. On many occasions, Gates has shared that he reads 50 books a year, many of which he recommends on his blog.


Taking into account that investments of Gates will be used mainly to the money raised for the foundation that he has together with his ex-wife, it is understandable that the millionaire does not invest so much in high-risk, high-growth stocks, but in companies with well-established business models that ensure you a constant profit.

Gates has shares in Apple, Amazon, Twitter and Alphabet (Google), but most of its portfolio is made up of safer and more stable companies. These are some of the main figures in your investment portfolio:

  1. Coca Cola Femsa
  2. Crown Castle International Corp
  3. United Parcel Service Inc. (UPS) y Fedex Corporation
  4. Caterpillar Inc.
  5. Waste Management Inc.
  6. Walmart Inc.
  7. Canadian National Railway Company
  8. Ecolab Inc.
  9. Berkshire Hathaway

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Bill Gates’ 10 Financial Tips for Being a Smart Investor