When you meet someone with a background in Human Biology and names his son after Warren Buffett, you should know what he is most passionate about. Ernest Addae, a Senior Research Assistant at the University of Cape of Coast School of Medical Sciences happens to be one of the greatest followers and fan of Warren Buffett and his Investment strategy.
Senior Research Assistant
UCC School of Medical Sciences
& Executive Director –
Medical Education Consult
He started learning about investing after reading Robert Kiyosaki’s book “Rich Dad, Poor Dad” in 2011. “That was when I first read a brief on Warren Buffett. However, the defining moment was when I read his biography on Wikipedia.” – He said to me. And so he took the rest of 2011 and early part of 2012 to learn about investing in stocks and study the investment strategies of Warren Buffett.
In March 2012, he started an investment partnership with a friend to invest in stocks listed on the Ghana Stock Exchange. It wasn’t that serious until April 2013, when he started an investment club with his colleagues at work.
Ernest’s Investment portfolio and that of his club’s are growing really fast. Unlike many investors, he only invests when opportunities present themselves.
Talking about investment instruments, he said his choice of investment is inspired by Warren Buffett who always says that “as long as you’re in a hurry to get rich, stock investing is still the way to create wealth although the road may get bumpy sometimes.”-Warren Buffett. “Also, personally I believe in long-term investment vehicles like stocks.”- Ernest said
Mistakes from his investing experience
In his own words; “There are different valuation models in analyzing assets, specifically stocks. I made a mistake of sticking to one model without giving it a careful thought and this makes me feel I’ve over paid for a stock.”
And to me, personally, I think this is what brings growth in investing – Making mistakes and learning from your mistakes. We make mistakes early with little cash and learn from them as quick as we can then make lots of profit with a lot of cash.
“In life, mistakes are bound to happen and as long as you don’t make a lot of stupid ones, learn quickly from them and move on. Life is too short, so don’t spend so much time crying over spilled milk.”
The essence of what he is saying is that, when investing whether in securities, business or any instrument don’t be afraid to make mistakes, and when you do make them, learn from them and move on. People lose money when they start investing. Others do not but whatever the case, keep moving forward, never stop letting your money work for you.
Role Model and What he reads
Obviously, Ernest role model is Warren Buffett and although many investors like Warren, he has taking it to the next level. Ernest is a voracious reader and has read a lot of books on investing, but really obsessed with Buffett and so has read almost every great book on him and his strategies. Some of these books are;
- Buffett: The Making of American Capitalist by Roger Lowenstein
- The New Buffettology by Mary Buffett and David Clark
- The Warren Buffett Way by Robert Hagstrom
- Annual Letters of Berkshire Hathaway by Warren Bufett
- The Snowball: Warren Buffet and the Business of Life by Alice Schroeder
- Personal Finance: Turning Money into Wealth by Arthur Keown
Ernest’s last word to the next generation of investors is a quote from Charlie Munger “Understanding both the power of compound interest and the difficulty of getting it is the heart and soul of understanding a lot of things.”
Ernest Addae read Human Biology at the University of Cape Coast and graduated with an excellent class. He possesses online certificates in Finance specifically Personal Finance. Also he is the Executive Director of Medical Education Consult (http://medusult.com) a study abroad consulting firm. A husband to an exceptional woman and have a wonderful boy called Warren.
He writes a blog on investing at www.docinvestor.wordpress.comand another on coding at www.earnestcoding.wordpress.com.