Know what you own, and know why you own it.
Risk comes from not knowing what you are doing so wide diversification is only required when investors are ignorant. You only have to do a very few things in your life so long as you don't do too many things wrong.
The need for empowering investors to have information on the way their own money is invested is not going away.
I don't want to talk about the regulation of financial markets because that is not my sphere of expertise. It's a very complicated topic, and if I have written a number of books they are always on topics that I think I know something about.
We were not taught financial literacy in school. It takes a lot of work and time to change your thinking and to become financially literate.
I want parents to teach that academic intelligence is essential, but so is financial intelligence.
People with low financial literacy standards are often unable to take their ideas and create assets out of them.
When you grow up in America today, most schools don't teach you about money and investing. You could literally take a class in woodshop or auto in high school and not take a class on money.
Many folks think they aren't good at earning money, when what they don't know is how to use it.
All the perplexities, confusion and distress in America rise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit and circulation
I was not a student of Wall Street, but I was a quick study.
Rule One. You must know the difference between an asset and a liability, and buy assets. If you want to be rich, this is all you need to know. It is Rule No. 1. It is the only rule. This may sound absurdly simple, but most people have no idea how profound this rule is. Most people struggle financially because they do not know the difference between an asset and a liability.
Earning money has a way of increasing financial intelligence quickly.
We know more about our credit cards than we know about our bodies.
Having a financially illiterate society is dangerous, and we have to do something about that.
I've just done a commercial in the U.S. in which I talk about stocks, shares and bonds. Everyone is amazed. They ask me: 'You really know about that stuff or did you just learn it for the commercial?' I tell them I wouldn't do it unless I understood and had an interest.
Invest in what you know.
So when I made some money, I didn't have any idea how one handled such a situation because no one in our family ever had any money.
Anyone who says he is an expert in the market is lying to you. There is no such thing.
I'm a big advocate of financial intelligence.
While good business ideas are plentiful, many entrepreneurs struggle to understand payroll taxes, health care and other thorny issues… In other words, they don't have the financial literacy to scale their businesses and attract investors.
The [stock] market,like the Lord, helps those who help themselves. But, unlike the Lord, the market does not forgive those who know not what they do.
In terms of my profession, I'm passionate about financial literacy. I want to live in a financially literate society. I want kids to understand the importance of savings and investing. I want to try to replicate the great savers who came out of the Depression, the best savers the country has ever seen. It's crucial that people understand the importance of financial literacy, because it's actually life saving.
People used to ask me for advice, and I'd say, 'Please, don't ask me!' Yes, I did economics at Oxford, but that's not the same as having a broad knowledge of personal finance.
If you want to be successful on the right side, when it comes to money, you have got to know the difference between facts and opinions. You must know numbers. You must know the facts.
