Lunch with Warren Buffett cost $19m. This advice is free!

One wealthy person has paid $19m to enjoy lunch with billionaire investor Warren Buffett. We mere mortals can’t afford this, so here’s his advice for free.

Fans of Warren Buffett taking his photo

Image source: The Motley Fool

In a recent online auction for US charity Glide, one anonymous bidder paid a record-breaking $19m for a one-hour lunch with Warren Buffett. In 2018, the winner of this unmissable event paid $2.7m, while the 2019 winner paid the previous record of almost $4.6m.

After a two-year absence and with this expected to be last of its kind, it’s no wonder that the latest winner dug deep to secure a spot with the 91-year-old mega-billionaire Oracle of Omaha. The winner and up to seven companions will dine at Smith & Wollensky in New York with Warren Buffett later this year.

I’d love lunch with Warren Buffett

The first lunch of this kind sold for $25,000, which I’d gladly pay several times over to meet perhaps the greatest investor in history. Instead, I’ve read countless books to absorb the wit and wisdom of Warren Buffett. Here are four quotes from the great man that guide my investment strategy today.

1. “Risk comes from not knowing what you are doing”

In 1993, this was Buffett’s response to a question from a student about his attitude to risk and portfolio construction. He added that some companies are worth ‘betting the farm’ on, simply because they are so well-run. And because Warren absolutely knows what he’s doing, his risk management is usually flawless.

2. “Rule number one: never lose money. Rule number two: never forget rule number one”

This advice appears simple, but turns out to be very difficult. Indeed, I know of only one investor who has never lost a single penny on any investment: my wife! That’s because, like Buffett, she only buys shares in high-quality, well-run businesses (or funds), and then holds them until this changes. In many cases, she has owned shares and funds for decades, giving her plenty of time to beat the wider market.

3. “Never bet against America”

Buffett believes that American capitalism has been one of the best wealth generators in modern history. I totally agree, which is why much of our family wealth is tied up in US equities. But when the S&P 500 index was trading above 25 times earnings in 2021, we stopped buying US stocks and switched to investing in cheaper UK shares. But if/when US stocks fall much further to, say, an earnings multiple of 15 or below, we will bet heavily on America once again.

4. “The best chance to deploy capital is when things are going down”

Buffett said this in a CNBC interview in February 2018. It seems obvious at first — just buy when prices are low — but the real skill comes in deciding when to buy big. With US stocks down around a quarter in 2022, I expect the next few months to offer good opportunities to buy into great companies at lower prices. And, as Warren himself has said before, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”.

Finally, I think Warren Buffett’s lifelong insights are crucial today. With stocks sliding, it would be easy for me to surrender to anxiety and stop investing. But this market crash might well be the storm before the calm, so I’ll keep buying cheap UK shares, despite a long list of global worries!

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be considered so you should consider taking independent financial advice.

Cliffdarcy has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services, such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Storytelling image of a multiethnic senior couple in love - Elderly married couple dating outdoors, love emotions and feelings
Investing Articles

1 dividend stock with a juicy yield to boost returns!

This Fool likes the look of this dividend stock to boost his passive income stream and explains why he would…

Read more »

Happy male couple looking at a laptop screen together
Investing Articles

Here’s 1 growth stock primed for long-term growth and returns!

Jabran Khan is hunting for a growth stock to boost his holdings. Could this financial advisory business be the right…

Read more »

Middle-aged white man wearing glasses, staring into space over the top of his laptop in a coffee shop
Investing Articles

3 FTSE 250 shares I bought for extra dividends

I plundered the FTSE 250 index to find these three cheap stocks with ailing share prices. All three firms pay…

Read more »

Young brown woman delighted with what she sees on her screen
Investing Articles

I’m buying cheap FTSE 100 stocks to boost my passive income!

Buying dividend stocks today could considerably improve the amount of passive income I make. Here are some FTSE 100 stocks…

Read more »

Portrait of elderly man wearing white denim shirt and glasses looking up with hand on chin. Thoughtful senior entrepreneur, studio shot against grey background.
Investing Articles

Am I crazy for buying Royal Mail shares?

Royal Mail shares have collapsed by almost half in 2022. And with group profits falling and strike action under way,…

Read more »

Shot of a young Black woman doing some paperwork in a modern office
Investing Articles

2 recession-resistant stocks to buy right now

After the pandemic slump, we're now facing a UK recession. Many are looking for recession-resistant stocks to protect their money.

Read more »

Engineer Project Manager Talks With Scientist working on Computer
Investing Articles

This FTSE 100 stock continues to fall! Should I buy shares?

This Fool takes a closer look at a FTSE 100 quality assurance stock. As the shares continue to fall, is…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

Is the Rolls-Royce share price about to surge?

The Rolls-Royce share price continues to fall as market patience wears thin. But could it be on the brink of…

Read more »