Chai  with  Pabrai
  • Home
  • Transcripts
  • Videos
  • Articles
  • Podcasts
  • Bookshelf
  • Contact

Vacuum up those pennies – and let Warren Buffett invest them for you!

2/9/2017

9 Comments

 
Saving the first dollar you earn, versus saving what is left after you spend, is always a smart way to go. And making it automated is key. Set it and forget it!

A new smartphone app, Stash allows you to automatically save as little as $5/month and then immediately invest the same in Berkshire Hathaway Class B shares. They’ll even buy fractional shares with no trading costs. The B shares are changing hands these days at about $164/share. If you send Stash $5, then they’ll buy you 5/164th of a B share. Stash does charge $1/month or 0.25% annually, whichever is higher.  

Another one, Acorns, rounds up your credit card purchases to the nearest dollar and saves the difference. You can have the pennies that Acorns vacuums up go into a savings account. And you can have Stash periodically move those savings into Berkshire. 

My friend, Jason Zweig, wrote an interesting piece on Stash, Acorns and a third one, Digit in his column “The Intelligent Investor” in the Wall Street Journal past weekend:

http://jasonzweig.com/inching-your-way-toward-wealth-with-your-phone/
​

When you buy that latte at Starbucks for $4.27 every day, it adds up. Taking those 73 cents every day and automatically investing them is such a no-brainer.
​
Picture
9 Comments
Rajeev Arora
2/12/2017 08:47:42 am

Reply
Blake
2/13/2017 02:42:45 pm

Mohnish, given the investments with these apps is generally so small, what type of a portfolio would you recommend? Would a higher return/higher risk portfolio be a good choice? Given that the 'capital' invested is so small I imagine the risk of loss is negligible.

Look forward to hearing back from you.
BN

Reply
Mohnish Pabrai
7/27/2017 07:05:23 am

That depends on your risk appetite and your other investments Blake. All the best.

Reply
Colby
2/15/2017 12:12:17 pm

I'm going for a BRK.A share, I am 30 now....let's build a snowball for these next 30 years.

Reply
Mohnish Pabrai
7/27/2017 07:05:41 am

All the best!

Reply
Santosh Kumar link
8/5/2020 05:20:08 am

I definitely need to do some maintenance on my vacuum. I hate vacuuming but that doesn’t mean I shouldn’t take care of it,

Reply
Mayank J link
9/6/2020 11:16:31 pm

Well I have just started earning and I am learning to invest money by saving the first dollar rather than saving what is left after I invest.

Reply
celeb networth link
2/16/2022 06:12:36 am

I hope to see more news from you. Thank you so much!

Reply
Adult Classifieds Florida link
10/24/2022 04:48:54 am

Very thoughhtful blog

Reply



Leave a Reply.

    Mohnish Pabrai

    Mohnish Pabrai is the founder and Managing Partner of the
    Pabrai Investments Funds, the founder and CEO of
    Dhandho Funds, and the author of The Dhandho Investor and Mosaic. 

    Archives

    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    June 2022
    May 2022
    March 2022
    December 2021
    October 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    October 2020
    June 2020
    May 2020
    April 2020
    March 2020
    December 2019
    November 2019
    October 2019
    September 2019
    June 2019
    May 2019
    March 2019
    December 2018
    November 2018
    October 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    July 2017
    June 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016

    Categories

    All

    RSS Feed

Contact

Copyright by Mohnish Pabrai. © 2022. All Rights Reserved.
  • Home
  • Transcripts
  • Videos
  • Articles
  • Podcasts
  • Bookshelf
  • Contact