Mikaela Shiffrin isn’t just the world’s most decorated alpine skier ever: She also owns the record for most prize money in a single season, with $1.04 million.
The 28-year-old, who set the record on Sunday, says she doesn’t plan to blow her earnings on sports cars or a flashy stock. Instead, she patterns her money strategy after Warren Buffett.
“My strategy for the money I’ve earned is to save and invest,” Shiffrin tells CNBC Make It. “I’m not necessarily playing the market on a daily basis, but I come from a Warren Buffett strategy. So, keep it diversified and ride the waves, which there have been a lot of lately, and make sure to save well.”
Buffett, the longtime CEO and chairman of Berkshire Hathaway — whose net worth is currently $103.4 billion, according to Forbes — has stood by this investment strategy for years.
In his annual letter to Berkshire Hathaway shareholders last year, Buffett wrote that investors shouldn’t waste time finding the perfect time to buy. Instead, buy stock if you believe in the company, and don’t be afraid to buy more when the price falls or sell when it’s high.
The best part about the tactic: It alleviates some of the pressure of trying to predict the stock market, Buffett noted. And it’s useful advice for anyone, even people who only want to drop a single dollar into the market.
Some stockbrokers and billionaires employ similar plans of action — including the world’s second-richest person.
“Buy stock in several companies that make products [and] services that you believe in. Only sell if you think their products [and] services are trending worse. Don’t panic when the market does,” Tesla, SpaceX and Twitter CEO Elon Musk, who has a net worth of $191.8 billion, tweeted last year. “This will serve you well in the long-term.”
Lauren Simmons, a former trader with Rosenblatt Securities who’s known as the “Wolfette of Wall Street,” agrees.
“Long-term investing always perseveres,” Simmons told CNBC Make It last year. “We do not need to be watching the stock market on a day-to-day basis. It’s like watching paint dry, and it will give you a heart attack.”
Shiffrin consults with a small, family-run financial office near her home in Edwards, Colorado, to figure out where exactly where to invest, she says. When she does spend, she likes to go big, she adds — from buying her house to paying for family vacations in Maui, Hawaii.
She tries not to overspend on anything without a long shelf life, including clothes and jewelry, she says.
“I always try to find the little places [to shop] that have the cheapest stuff because I will break stuff, or I drop it or I lose it,” Shiffrin says.
Note: Shiffrin’s season earnings were issued in Swiss francs, and converted to U.S. dollars using exchange rates from Sunday, March 19.
