By Zelle R. Dunn, Managing Partner, New Republic Partners

Recently, I traveled to the Berkshire Hathaway annual meeting in Omaha with my teenage son. He had just become interested in investing, and we’d been reading Warren Buffett’s annual letters together. That was our way of exploring not just the mechanics of investing, but the mindset, character and core values that guide sound decision-making. 

Our time in Omaha was unforgettable. What made the experience most meaningful wasn’t just how much my son took in, it was how that weekend opened a door for deeper conversations between us. Conversations not just about investing, but about how to make wise decisions, how to define success, how to stay grounded, and how to use what we have in time, talents, and resources with purpose.

As someone who advises families of multi-generational wealth, I’m frequently asked the same pressing questions: How do we ensure our wealth doesn’t spoil our children? How can we raise kids who are financially responsible and grounded? How do we prepare them to be thoughtful stewards of what we’ve built? These are not questions with quick fixes or simple answers. They call for a deeper, ongoing commitment to intentional conversations, shared experiences, and open dialogue.

Families who successfully navigate the transition of wealth across generations share a key trait: they engage in regular, honest conversations about money, values, and responsibility. These aren’t one-time lectures; rather, they are ongoing discussions woven into everyday life and family culture. We don’t raise good stewards of wealth by handing them investment manuals or family balance sheets. We raise them through conversations, real life examples, and experiences that shape their worldview.

What follows are some of Warren Buffett’s timeless investment principles, reframed as conversation starters to inspire meaningful dialogue across generations about values, responsibility, and what it really means to be a good steward. 

1. “Rule No. 1: Never Lose Money. Rule No. 2: Never Forget Rule No. 1.”¹

Lesson: Instill Respect for Capital Early
Buffett’s emphasis on the preservation of capital is a call to be thoughtful and disciplined. For parents, this means teaching children money is a tool, not a toy. The goal is not about fostering fear of scarcity but cultivating a respect for what money represents: work, opportunity, and responsibility.

Practical Steps:

• Give allowances tied to tasks that require effort and consistency.
• Introduce budgeting concepts early using jars or kid appropriate finance apps.
• Encourage saving for small goals to understand delayed gratification.

2. “By far the best investment you can make is in yourself.”²

Lesson: Nurture Character and Education Over Consumption
Buffett famously champions the idea that self-improvement has the highest ROI. Qualities such as  intelligence, integrity, and curiosity are not only enduring assets, but also foundational concepts for  long-term success and fulfillment. By helping children understand that their true worth is measured by who they are and what they contribute, not by what they wear or own, parents can instill values that lead to authentic and lasting prosperity. By guiding children to invest in their character and knowledge, you’re equipping them with tools that appreciate in value over a lifetime.

Practical Steps:

• Celebrate curiosity: books read, questions asked, skills learned.
• Model lifelong learning in your own habits.
• Emphasize intrinsic value over designer labels or trendy gadgets.

3. “Be fearful when others are greedy and greedy only when others are fearful.”³

Lesson: Teach Critical Thinking and Courage to Think Independently
This investing maxim encourages contrarian thinking, a skill every child will need in a world flooded with peer pressure, social media trends, and instant gratification. Children should be encouraged to question popular opinions, assess situations thoughtfully, and have the confidence to act according to their values and judgment, even when it means standing alone. By fostering independent thinking and moral integrity early, you equip your child to make wise, principled choices in all areas of life, not just investing.

Practical Steps:

• Read stories about innovators and nonconformists who went against unpopular opinions and changed the world.
• Encourage standing up for values, even when it’s unpopular.
• Share family financial decisions and explain the “why” behind them.

4. “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that you’ll do things differently.”⁴

Lesson: Integrity is Non-Negotiable
Buffett views trust and reputation as indispensable assets for any successful investor. Integrity builds the foundation for trust, promotes long-term thinking, and encourages honest self-evaluation. This core value safeguards against ethical missteps and enhances credibility, paving the way for enduring relationships and opportunities. Ultimately, a consistent reputation for honesty becomes a powerful asset, expanding an investor’s influence and leadership within the industry.  It does the same in life as well. 

Practical Steps:

• Use mistakes as teachable moments, not punishable offenses.
• Reflect regularly on family values and what they look like in action. 
• Let children witness moments where integrity trumps financial gain.

5. “…our favorite holding period is forever.”⁵

Lesson: Practice Long-Term Thinking
Buffett’s investment horizon is decades, not days. In parenting, this translates to instilling patience, persistence, and a long-term vision. Whether saving for college, building a career, or nurturing relationships, life’s biggest dividends require time.

Practical Steps:

• Start investment or savings accounts in a child’s name to reinforce compounding.
• Teach goal setting with timelines that stretch months or years.
• Share examples of long-term decisions your family has made, such as a business venture or investment, and explain how staying the course during tough times paid off in the end.

6. “Do not save what is left after spending; instead spend what is left after saving.”

Lesson: Build Financial Discipline Early, Wealth Does Not Excuse Waste
This quote delivers a timeless truth: financial discipline is not just for those with limited means, it’s essential for everyone, including families of significant wealth. Learning to save before spending, rather than the reverse, fosters clarity, control, and long-term security.

If a child does not learn to budget and save when their finances are simple, it becomes far harder when the stakes are higher, when incomes increase, expenses expand, and life grows more complex. 

Practical Steps:

• Reinforce the concept that budgeting isn’t about limitations, it’s about intentionality and freedom of choice.
• Highlight stories from your family or history where disciplined habits protected or grew wealth across generations.
• Do the math with your child to show the impact of compounding when money is saved and invested over time.

7. “It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.”⁷

Lesson: The company you keep dictates the life you will lead.
During this year’s annual meeting, Buffett made one point very clear: the people you choose to surround yourself with shape your values, your joy, and your future.  

He espoused that your life trajectory mirrors the qualities of those you spend time with, be it colleagues, friends, or mentors. Surrounding yourself with individuals who are admirable, morally upright, and driven makes you want to elevate your own standards. Help your children choose their friends, mentors, and colleagues with care. More than college rankings or job titles, those choices will shape the arc of their lives.

Practical Steps:

• Model positive associations. Children absorb values more from what they observe than what they’re told. 
• Share moments where the company you kept made a big impact – good or bad. Do this across different phases of your life, as a student, a professional and a parent.
• Guide them to good company. Encourage kids to join teams, clubs, or volunteer groups where strong values are lived and shared.

8. “My wealth has come from a combination of living in America, some lucky genes, and compound interest.”⁸

Lesson: Acknowledge Privilege, Cultivate Gratitude, and Share Generously
This quote reflects Buffett’s deep humility and awareness of how fortune, not just effort, shapes outcomes. Acknowledging the role of good fortune doesn’t diminish achievement, it amplifies gratitude and encourages empathy. This is a foundational mindset for raising children who understand wealth is a resource to be stewarded, not flaunted.

Children must come to see their advantages not as entitlements, but as tools for impact. This awareness seeds generosity, humility, and a desire to contribute meaningfully to the world around them.

Practical Steps:

• Involve children in charitable giving and community engagement.
• Celebrate not just financial wins, but acts of kindness, gratitude, and generosity.
• Discuss what kind of legacy they want to leave, not just financially, but relationally and socially.

Conclusion: Wealth is More Than Money
Warren Buffett isn’t just the world’s greatest investor; he’s one of the world’s greatest teachers. Not just because of what he knows about compounding capital, but because of what he understands about life.

So, when parents ask how to best prepare the next generation, I often come back to Buffett’s own words:

“I want to give my children enough to do anything, but not so much that they can do nothing.”⁹

Our role is not merely to provide, but to prepare. Give them the tools. Give them the support. But most of all give them the space to become, to earn, to contribute, to stretch, and to live a life of meaning and stewardship.

The next page is theirs to turn.

Zelle R. Dunn is a managing partner at New Republic Partners. She brings over two decades of experience in wealth advisory and investment management. She leads the firm’s day-to-day operations and heads the firm’s North Carolina advisory team. Zelle also advises a portfolio of individuals and families on strategies and investment solutions to achieve their goals.

Reach her at info@newrepublicpartners.com

¹ Berkshire Hathaway Shareholder Letter, 1985
² Source: Yahoo Finance Interview with Editor-In-Chief Andy Sewer, 2019
³ Source: Berkshire Hathaway Shareholder Letter, 1986
⁴ Source: Speech to MBA Students at the University of Nebraska, 2005
⁵ Source: Berkshire Hathway Shareholder Letter, 1988
⁶ Source: MarketWatch “Warren Buffett says this is the ‘biggest mistake’ people make with their money…”, 2022
⁷ Source: Berkshire Hathway Annual Meeting, 2004
⁸ Source: Warren Buffett’s Giving Pledge Letter, 2010
⁹ Source: Fortune, “Should you Leave It All to the Children”, 1986

Disclaimer 
New Republic Partners is an investment advisor registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about New Republic Partners’ advisory services can be found in its Form ADV Part 2 and/or Form CRS, which is available upon request.

The opinions referenced are those of New Republic Partners as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. This material is for informational use only and should not be considered investment advice.