On Saturday May 4, 35,000 people from all over the world will descend on Omaha Nebraska in the United States.
This is where legendary investor and the world’s third richest man Warren Buffett holds his annual meeting each year for his company Berkshire Hathaway, which holds assets of $707.8 billion.
Woodstock for capitalist it’s referred to as, and investors from all walks of life come to listen and learn from Warren and his long-time business partner Charlie Munger.
Nowhere in the world will you see this many people come together in an arena to listen to two old men in their late 80s and 90s discuss investments and life lessons from 7am until late evening.
This year I’m fortunate enough to be attending and can’t wait to listen to the oracle of Omaha embark some wisdom
on the crowd.
What really motivated me to attend this year and helped me get over the 20-hour flight time is the state of our economy.
Not only am I interested in listening to Warren answer questions on investing but I want to get a feel for the overall economy.
In my role at Yellow Brick Road Torquay helping to lend money to families for their dream homes I always like to stay up to date with the economy.
What I’m hearing are whispers around the world that we could be in for a significant slowdown in the economy in 2020.
I have no idea if this is true and won’t claim to be able to predict the future, all I know is that Warren is quoted saying that he is looking for an elephant sized business deal and he only makes these kind of deals when prices are low and the economy is on the way down.
My three tips to prepare yourself for an eventual economic slowdown are:
1. Save and accumulate cash
2. Don’t over borrow
3. Over communicate your finances with your family
By taking some simple steps now it could put you in a position to take advantage of some opportunities that may arise.
And like Warren always says, “Be fearful when others are greedy and to be greedy only when others are fearful.”
For more information on preparing for an economic slowdown or any finance matter, please contact me on 0400 949 797 or email me at firstname.lastname@example.org.
Isaac Baker is a local mortgage broker who operates Yellow Brick Road Geelong & Torquay from their Torquay office; Level 1,
Corner of Merrijig Drive & Fischer Street in Torquay. Advice in this column should be taken as general in nature and might not apply to your personal circumstances.