5. Keep cash on hand
Another key to ensuring security is to always keep cash reserves on hand. “We always maintain at least $20 billion — and usually far more — in cash equivalents,” Buffett said in the 2014 Berkshire Hathaway annual report. Buffett credits these reserves with helping Berkshire Hathaway stay afloat throughout the Great Recession, even as so many other businesses floundered.
Businesses and individuals alike might get an itch to put liquid cash to work through investments. “Cash, though, is to a business as oxygen is to an individual: never thought about when it is present, the only thing in mind when it is absent,” Buffett said. “When bills come due, only cash is legal tender,” he continued. “Don’t leave home without it.”
6. Invest in yourself
“Invest in as much of yourself as you can. You are your own biggest asset by far,” Buffett said, according tocom. He echoed those sentiments in a CNBC interview when he said, “Anything you do to improve your own talents and make yourself more valuable will get paid off in terms of appropriate real purchasing power.”
Those returns are big, too. “Anything you invest in yourself, you get back tenfold,” Buffett said. And unlike other assets and investments, “nobody can tax it away; they can’t steal it from you.”