At the tender age of 11, Warren Buffet invested in his first ever stock. Buffett bought six shares of Cities Service preferred stock for $38 per share. The stock fell to $27 a share shortly thereafter. The shares eventually bounced back to $40 a share. Buffett sold the stock at that point for a nice $3 per share profit. Not too shabby…right?
Not long after Buffet sold his shares in Cities Service, their stock price jumped to $200 per share! Buffet could have made 426% on his initial investment if he had stuck with it. This experience taught Buffett a valuable lesson which he would carry with him the rest of his life.
What lesson is to be learned here? Teach your children about personal finance and investing at a young age. What they learn about money when they are young will help set them up for great success for the future. It will be the best investment you ever make.