Never lose money

Warren Buffett’s No. 1 piece of advice for 2016 is one he follows as closely as he can: “Rule No. 1: Never┬álose money. Rule No. 2: Never forget rule No. 1.”┬áThis rule applies readily to investing — if you’re working from a loss, it’s that much harder to get back

Get high value at a low price

“Never lose money” is an even smarter rule when paired with another Buffett principle. “Price is what you pay; value is what you get,” Buffett wrote in the 2008 Berkshire Hathaway shareholder letter. Losing money can happen when the price you’re paying doesn’t match the value you’re getting — like

Form healthy money habits

“Most behavior is habitual,” Buffett said in a 2007 address at the University of Florida, “and they say that the chains of habit are too light to be felt until they are too heavy to be broken.” Habits are changeable, but the earlier you start, the better. “I think the

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

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

Learn about money

Part of investing in yourself should be learning more about managing money. As an investor,Warren Buffett surely finds that much of his job is limiting exposure and minimizing risk. And “risk comes from not knowing what you’re doing,” Buffett once said, according to Forbes. The more you know about personal

Give back

“If you’re in the luckiest 1% of humanity, you owe it to the rest of humanity to think about the other 99%,” Buffett said at a 2007 political fundraiser for Hillary Clinton. And as a top member of that 1% himself, Buffett makes it a point to put his money