1 Valuable Parenting Lesson from Warren Buffett

Warren Buffett does what many parents don't do. He talks about money with his children.

Jul 13, 2014 at 1:10PM

In 2006, Warren Buffett made a pledge to give away 99% of his wealth. According to Bloomberg's calculations, that would be roughly $65 billion.

This is a noble action, and one surely praised by most. But Buffett also has 3 children -- how do you think they feel about their father pledging away the family's unworldly wealth?

Well, believe it or not, they are perfectly fine with it. They have accepted their father's decision and have even begun to manage their own philanthropic endeavors.

How was Warren Buffett able to ease his children's concerns and avoid years of awkward Thanksgiving dinners? Communication.

As he explains in the video below, Buffett highlights why he takes to the time to walk his children through any changes he makes to his "last will and testament" before he signs it. This is in stark contrast to other wealthy families. 52% of parents with more than $3 million in investable assets have yet to fully disclose the depth of their wealth with their children and 15% haven't said a peep about it, according to U.S. Trust's Insights on Wealth and Worth study.

40% of people in that study were afraid their kids would make poor decisions or squander the money. These are valid concerns, but only if you do not take the time to educate your children and be transparent on the topic of money -- something Buffett has always stressed through his annual letters to Berkshire Hathaway shareholders.

If Buffett is taking the time to go through his $66 billion fortune with his kids, surely everyone can walk their families through their financial situation.

Warren Buffett: This is a "real threat"
Buffett isn't scared of his children squandering his money away, but there is a new technology that's keeping him up at night. Click here to access a FREE investor alert on how you can invest in this company we're calling the "brains behind" the technology.

David Hanson owns shares of Berkshire Hathaway. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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