‘Things were way tougher’: Warren Buffett’s right-hand man had a blunt message for people worried about 'hardship' — here's how to stay invested no matter what the rest of 2024 has in store

‘Things were way tougher’: Warren Buffett’s right-hand man had a blunt message for people worried about 'hardship' — here's how to stay invested no matter what the rest of 2024 has in store
‘Things were way tougher’: Warren Buffett’s right-hand man had a blunt message for people worried about 'hardship' — here's how to stay invested no matter what the rest of 2024 has in store

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

As we reach the halfway point of 2024, many Americans are still contending with the effects of inflation and the strain things like elevated costs of living and high interest rates can put on their family finances.

Last week, the U.S. Bureau of Labor Statistics released its latest inflation rate, showing a 3.3% increase over last year. While this uptick was viewed positively as it was lower than anticipated by some analysts, it’s important to note the broader economic context.

Charlie Munger, Warren Buffet’s late right-hand man and long-time business partner who died in November of last year, suggested that we should be more content with our current situation.

Don't miss

“People are less happy about the state of affairs than they were when things were way tougher,” Munger recounted last year, referring to living through the immense hardship of the Great Depression.

Here are a few ways you — investing legend or not — can make the best of the current economic situation and safeguard your financial future.

Invest extra cash outside the stock market

You don’t need to be investing exactly like Munger to be investing well. Nor do you need to hold off on investing amidst economic stress.

Alternative investments have traditionally been exclusive to ultra-high-net-worth individuals, but new platforms are making it easier and cheaper to buy in. That means you no longer need to limit yourself to the stock market in order to grow your portfolio value or find that much needed stabilizer.

If you’re looking for a new investment opportunity that can hedge the violent swings of the markets, you’ve got several options.

Real estate has demonstrated its resilience during tough economic times, particularly necessity-based properties.

First National Realty Partners lets accredited investors own a share of institutional-quality properties leased by national brands like Whole Foods, CVS, Kroger and Walmart. You’ll get the potential for a stable cash flow and the firm handles the work for you.

Another visible option for profiting off the real estate market is through a real estate investment trust (REITs). Generally, REITs are described as high-return investments that provide dividends and the potential for moderate, long-term gains.

One option for investing in REITs is through Fundrise eREITs, which are exclusively available through their platform. Each eREIT is part of a unique investment strategy that can include a range of assets including residential and commercial properties.

With over 2 million investors, Fundrise is an accessible investment platform that can help you diversify your portfolio by spreading risk across different assets. To get started, all you have to do is answer a few questions about yourself and investment preferences, and Fundrise will suggest a portfolio tailored to your needs.

Read more: Car insurance rates have spiked in the US to a stunning $2,150/year — but you can be smarter than that. Here's how you can save yourself as much as $820 annually in minutes (it's 100% free)

Don't underestimate the power of pocket change

Building small, positive financial habits can have a huge impact in the long run.

With Acorns— an investing and savings tool — you can save for the future with expert-built portfolios based on your financial needs and goals. And because they offer automated investing, it’s a hands-free approach that lets you take part without overthinking your stock picks or lagging behind on your investment goals.

Signing up for Acorns takes less than five minutes, and if you start now, you'll get a $20 bonus investment.

Once you’ve signed up and linked your credit and/or debit cards, all you have to do is spend as you normally would and Acorns will round up your everyday purchases to the nearest dollar and put that change into a smart investment portfolio to grow.

You can keep a close eye on your portfolio through the app and see just how far your change will go. And amidst economic uncertainty, you can’t go wrong with having extra funds to fall back on.

Make buying and selling stocks easier

The investing veteran was able to stay happy amidst economic volatility in part thanks to three stocks — Bank of America, Wells Fargo and Alibaba Group.

Whether you want to hitch your wagon to Munger's favorites or not, there are online platforms that can make executing your investing strategy easier by removing the guesswork .

If you’re looking for ways to invest in the stock market and make your own trades, Interactive Brokers is a trading platform worth considering. With highly competitive commissions and fees, Interactive Brokers provides access to a diverse range of investment options across major asset classes, including U.S based stocks, ETFs and mutual funds. Interactive Brokers makes it easy for active traders to optimize their investing strategy by providing advanced trading tools and resources. But, if you’re looking for guidance from seasoned experts with decades of investing experience, Motley Fool Stock Advisor could be the solution for you.

With over half a million users, Motley Fool Stock Advisor offers a subscription-based service designed to equip everyday investors with expert market insights and stock picks, so you can better allocate your money.

With access to extensive reports, and a community of half a million investors, Motley Fool offers comprehensive resources for valuable investing knowledge aimed at helping you diversify and improve your portfolio.

What to read next

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.