Do you know Warren Buffett’s number one rule on investing?
Rule No. 1: Never lose money.
Rule No. 2: Never forget rule No. 1.
I’ll never forget my father’s lesson. He told me, “Son, no matter how many material things you accumulate, you can lose them all.”
“What do you mean, Dad?”
“Your great grandfather owned a beautiful farm. It meant everything to him. One day, some crazy, corrupt government officials came and took it from him. He lost it.”
“He couldn’t get it back?” I asked.
“No, in fact, let me tell you another story. Your grandfather lost one of his businesses due to some powerful union leaders that came one day with three buses, and took all his workers.”
“How? Where did they take them?” I asked intrigued.
“By the time they retuned, they were forced to follow the unreasonable demands of the union leaders. Your grandpa’s business was never the same again. He had to eventually close that booming business. He lost it.”
I couldn’t believe the stories, “Has this ever happened to you?” I asked.
“Yes. You were still a young boy. We owned a lot. One day some people decided to build a street through our property so they could get to their property — isn’t that crazy?”
“With no permits?”
“Yes, no permits! We lost that land plus got a huge headache of legal fees. The lesson here, Son, is that material possessions can be lost. But remember this: NOBODY can EVER take knowledge away from you. Investing in your knowledge is the safest investment you can ever make.”
So, to answer your question, what is the best way to invest money when you don’t have a lot?
An investment in knowledge pays the best interest. — Benjamin Franklin