Warren Buffett: 'Most good sales people believe their own baloney'

Warren Buffett has earned his fortune through his savvy investment strategies and his success has inspired the masses who desire to replicate his achievements. 

During his address at the Berkshire Hathaway Annual Shareholders Meeting, the Oracle of Omaha opined on what makes a good sales professional and how that relates to investment decisions. 

“Most good salespeople believe their own baloney,” said Buffett, who is chairman and CEO of the company. “I mean, that’s part of being a good salesperson. And I’m sure I’ve done plenty of that in my life too, but it’s very human if you keep repeating something often enough.”

But when it comes to financial investments, Buffett’s advice is to know when to selectively tune out your advisor or broker. 

Berkshire Hathaway Chairman and CEO Warren Buffett speaks during an interview in Omaha, Neb., Monday, May 7, 2018, with Liz Claman on Fox Business Network's "Countdown to the Closing Bell". (AP Photo/Nati Harnik)

A broker often earns through commission or incentives. Either way, their compensation is based on how and where they invest your money. It’s not nefarious, but Buffett encourages investors to be wary of how their money is being allocated to make sure it’s in their interest and not the interest of the broker. 

Buffett suggests that the “best thing to do is to own the S&P 500 index fund,” specifically a cross-section of businesses.

It’s a theme he hammered home several times during the shareholders meeting.

“But we do not think if you own a great many businesses that every one is destined for success,” he said later. “That’s why I suggest to people to buy an index fund...with the exception of Berkshire, I would not want to put all my money in any one company.”

Stephanie is a reporter for Yahoo Money and Cashay, a new personal finance website. Follow her on Twitter @SJAsymkos.

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