Regardless of your profession, your current situation in life, or what your objectives are, these tips from Warren Buffett that you are about to read, will be very much beneficial to you.
His journey of life and the wealth he has accumulated are worthy of being admired, and surely, something can be learned from the life of a man who, exaggerating a bit, everything he touches becomes gold.
Warren Buffett’s advice not only includes best investment decisions, but also implies habits, decisions and a lifestyle that will lead to great results.
Warren Buffett’s tips for success in life:
And when we talk about value investments, we do not just talk about investing money, but about the way we take care of time, with whom we share it and what habits we have.
Warren Buffett’s advice highlights the importance of the investments we make in ourselves. According to Buffett, you will never get more profitable investment in life than the investment you made in yourself.
So here you have the best tips on how to invest your money, time and resources according to Warren Buffett.
1. The importance of reading:
Everything starts here. You need to develop healthy habits that allows you to function at your maximum potential, otherwise you will not be able to live up to the circumstances in your life.
Warren Buffett believes that reading works in the same way that compound interest does ; Every day that passes you are building knowledge, adding information and reading.
Over time this will be exchanged with each other, generating new ideas and knowledge that you can implement concepts and strategies that facilitate your investment process, your business ideas and life in general.
Warren Buffett admits that he spends nearly 80% of his day reading, and according to him, this is the reason why he manages to make wise and intelligent investment decisions.
If you ask him, it is not a question of the number of pages you read in a day, no, everything is limited to your capacity for critical and deep analysis of the material you are studying.
This is the way to take your knowledge and money to a whole new level, and reap the benefits of this intellectual investment in the years to come.
2. Grow positive habits in your daily routine:
One of the phrases of Warren Buffett that I like most says that “the chains of habit are too light to be felt, until they are too heavy to break”.
In other words, you are the result of your habits. So start small, you can apply the Kaizen Method and develop habits that put you in a winning position in front of your goals.
After you start, plan to do it tomorrow, you do not need to start too big, just taking small steps to build a routine in your life.
One of Warren Buffett’s advice that best expresses the importance of habits is that, “what you do now, is what determines how your body and mind will work in 10, 20, 30 and 40 years.”
3. Never stop learning:
Warren Buffett understands very well the importance of constantly learning and looking for all the tools that allows one to be more intelligent.
An example of this is that, at 21, Buffett was afraid to speak in public. So he made the decision to invest $100 in a Dale Carnegie course to speak in public.
This course ended up being a great investment, to the point that it served to propose to his wife.
This is corroborated by Charlie Munger, vice president of the Berkshire Hathaway Corporation who said:
“Warren Buffet has become a better investor since the day I met him, just like me. If we had decided to keep the knowledge we had, our investment record would never have reached this level, it would be much worse. So the game is to never stop learning”
How can you apply this in your life? Most people think that education ends with the university, which is a mentality that will hardly allow them to progress.
These tips from Warren Buffett tells us that life is a process of continuous learning, and there are many ways to achieve it. For example:
Attend conferences, seminars and meetings that are topics of interest. You can study online, from online masters to training courses on specific topics. Talk to people and ask them questions (listen more than you talk). Take time to investigate about those issues that interest you and move you. Travel more, there are many ways to earn money traveling so do not limit yourself to staying in one place throughout your life.
4. Surround yourself with excellence:
It has been said that you are the average of the 5 people with whom you spend most of your time. In other words, the people you spend your time with influence who you become. Look around you and ask yourself the following questions:
Are the people you have by your side making you a better person or are they taking you down with them? Are they mostly positive or do they usually have a “half-empty glass” vision? Do you feel better when you’re around them, or do you feel worst?
If you have toxic people by your side, with a negative influence on your life you have to stay away from them, or limit the time you share with them.
While this may be difficult when dealing with a relative or a partner in your job, you should be firm in your decision if you want to build a better personal version.
One of Warren Buffett’s most valuable tips to remember in your life:
“I’ve learned that it’s worth to surround yourself with people who are better than you; because you will float a little more and you will ascend. But surrounding yourself with people who are worse than you, will not take long before you slip. It just works that way. “
5. Success is a process that takes time:
The more than 80 billion dollars accumulated by Warren Buffett are products of many years of work, effort, intelligence and specialized work.
His life is an example of persistence, and here are a few examples:
- Buffett made his first investment at age 11, buying shares of the company Cities Service Preferred at $38 dollars each.
- Being very young, Buffett was already earning $175 a month, thanks to his various jobs such as a delivery man for The Washington Post, which he acquired later.
- Another of his jobs was selling used golf balls, stamps, the “polished” car, had a pinball machine business and turned a horse track into a recreational park which was very lucrative. All this translates into having more than $ 53,000 saved at 16 years.
Start working immediately on the projects that you are passionate about. Be creative, look for new sources of income, learn to earn extra money in your free time and constantly look for new business opportunities.
When you have a growth and opportunity-seeking mentality, sooner or later life will begin to show you ways and put you in situations where you can take advantage of your full potential.
In the case of Warren Buffett, his habits and decisions began to show results. For example, more than 99% of Buffett’s fortune was accumulated after his 50th birthday and during 2013 he managed to earn an average of 37 million per day.
6. Have a methodical approach:
Within the advice of Warren Buffett you will find the importance of judicious decisions, based on hard data and information.
In the case of Buffett, this is based on numbers, facts and especially on results. Which gives you the advantage of testing your hypotheses and new ideas before other people who assume emotional criteria.
In short, this allows Buffett to make smarter, more conscious decisions, since they are not influenced by the opinion and perspective of others.
An example of this is that if you had invested $1,000 in the company Berkshire Hathaway in 1964, which was a textile company about to go bankrupt, and that was acquired by Buffett and turned into its financial conglomerate, today your investment will be valued at $ 11.6 million.
In business, and investments, it is important to hurry up and capitalize on the business opportunities that are presented to you, but not in any way, or by making impulsive decisions, but on the contrary, apply these tips from Warren Buffett and have a methodical approach .
7. Invest time knowing yourself:
To be successful in life you must first know what your calling is, that is, you must discover and build your life purpose.
As Warren Buffett’s puts it,
“never stop looking for the job you’re passionate about. Try to find the job you would have if you were rich. Forget the salary. When you associate with the people you love, doing what you love; There is nothing better than that”.
This advice is extremely valuable in a time of life, where we associate everything with generating income, being productive at work and performing professionally. However, how are the other facets of your life?
Your time is extremely valuable and unique to waste it doing something that does not motivate you; rather, invest part of it knowing yourself better. Here are some ways to do it:
- Meditate, so you don’t think you are not capable of doing it.
- Practice yoga, in this way you will connect your mind with your body.
- Write some notes in your journal in the morning.
- Be grateful every day for those people and things you have in your life.
- Find hobbies that you enjoy (and practice them seriously).
- Look for that skill that you’ve always wanted to learn and start learning it right away.
You only have once to live in this life, so why not live it to your full potential? Invest as much as you can in yourself right now, you will surely see results you would never have thought of.
8. Learn to influence other people:
For Warren Buffett, his most determining and valuable skill throughout his life was to influence and persuade other people.
As mentioned above, one of Buffett’s first investments was taking the Dale Carnegie course, which later became the book How to Win Friends and Influence People.
Without his influence, Buffett would not have been able to buy so many companies, take investors out of the way, convince them to work for him free, negotiate multi-million dollar contracts and build profitable businesses.
Learning to communicate was so important to him that the only diploma he has hanging on the wall of his office is from Dale Carnegie’s course. For him, this is one of his greatest achievements.
9. Take calculated risks:
When fear and uncertainty comes, this businessman takes enormous financial risks and invests in stocks, in foreign countries and buys companies about to be bankrupt.
While most investors become cautious and nervous during down markets, Buffett takes advantage of opportunities to generate income.
As he puts it,
“I’ll tell you how to become a millionaire. Close the doors. Be fearful when others are greedy. Be greedy when others are scared. “
As an investor, Warren Buffett understands that the best investments are the result of taking calculated risks over a long-term horizon.
He is not investing to make quick money here and there, buying and selling on the same day, in the same week, or in the same month. His investments are here to stay and his patience has brought him good results.
The results? Warren Buffett has managed to beat the market for several consecutive years, has been listed as the best investor of all time and has a return of more than 15% for more than 20 years.
10. Live with less than what you have and invest:
To conclude, if Warren Buffett had not reduced his expenses or saved the money, he would not have had the opportunity to face the market, to win it, let alone accumulate so many billions of dollars.
So one of Warren Buffett’s tips to succeed is, learn how to save money and start immediately.
The life of Warren Buffett is proof of this, since he leads a rather frugal lifestyle; So much so that he continues to live in the same house he bought in 1956 in Omaha for $31,500.
And even though his investments leave returns calculated in millions of dollars, his salary at Berkshire Hathaway is $100,000 per year, which allows him to live a life far from luxury and eccentricities.
These Warren Buffett tips that you just read are the pillars that allowed the “Omaha Oracle” to build a life of success and wealth. It is said that Buffett has donated more than 20 billion dollars in his life, so his actions have had a positive impact on the course of humanity.
If you want to change your life, and opt for habits that have been proven by one of the richest men on the planet, you can follow these great tips from Warren Buffet.