Warren Buffet Rules and Lessons to Success in business and life
Table of Contents
Warren Buffet or “Oracle of Omaha” as popularly known is the CEO and Chairman Berkshire Hathaway. He is commonly referred by the titles; Business and investment magnate, Seasoned investor, and philanthropist
Warren Buffet is one of the richest men in the world (3rd, behind Bill Gates and Jeff Bezos as at November 2017).
He is known for his humble and simple lifestyle. For a long time, he has driven himself to work in his Cadillac and eats at the same restaurant.
He has pledged to give away 99% of his wealth to charity through Bill & Melinda Gates Foundation. In 2010, Warren together with other World Billionaires including Bill Gates and Mark Zuckerberg founded The Giving Pledge. The foundation is aimed at having Billionaires donate half of their wealth to charity.
Warren Buffet is my favorite entrepreneur and investor of all time.
Here are his 11 rules and lessons of success that I have embraced.
Warren Buffet’s two rules for investing
“Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1”
Choose who you hang out with wisely
“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.”
Always avoid bad debts by Warren Buffet
“I’ve seen more people fail because of liquor and leverage — leverage being borrowed money. You really don’t need leverage in this world much. If you’re smart, you’re going to make a lot of money without borrowing.”
The laws of investing
“The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determine the competitive advantage of any given company and, above all, the durability of that advantage.”
“Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time: You can’t produce a baby in one month by getting nine women pregnant.”
Learn, be honest and make good decisions
“You only have to do very few things right in your life so long as you don’t do too many things wrong.”
“Long ago, Ben Graham taught me that ‘Price is what you pay; value is what you get.’ Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”
“What we learn from history is that people don’t learn from history.”
“Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be a more productive than energy devoted to patching leaks.”
Invest heavily in yourself and be money conscious
“Don’t save what is left after spending; spend what is left after saving.”
“Invest in as much of yourself as you can. You are your own biggest asset by far”
Make long-term investments
“Someone’s sitting in the shade today because someone planted a tree a long time ago”
“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
“If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.”
Give back to the society
“If you’re in the luckiest 1% of humanity, you owe it to the rest of humanity to think about the other 99%”
Always keep an eye on opportunities. When you get a good one, act on it
“You do things when the opportunities come along. I’ve had periods in my life when I’ve had a bundle of ideas come along, and I’ve had long dry spells. If I get an idea next week, I’ll do something. If not, I won’t do a damn thing.
“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
Learn to say no
“The difference between successful people and really successful people is that really successful people say no to almost everything.”
“If you buy things you don’t need, you will soon sell things you need.”
Do what you love by Warren Buffet
“In the world of business, the people who are most successful are those who are doing what they love.”
Quote of the day
“When life knocks you down, try to land on your back. Because, if you can look up, you can get up. Let your reason get you back up.” – Les Brown
Conclusion
If any of the rules motivates and inspires you, remember to take action and share with others.
Leave a comment below with your best lessons from Pro. Wangari Mathai.
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Go ahead and do it. Make it work now. Create your life.