WARREN BUFFET
Warren Buffett is known as one of the best investors of all time, and he’s amassed a multi-billion dollar fortune investing through his company Berkshire Hathaway. But he’s not only a great investor, he’s also a great wit, and Buffett enjoys sharing his folksy wisdom with fellow investors.
His advice runs the gamut of topics, not only about investing but about life in general. But today let’s stick to Buffett’s advice that could help make you rich. Here’s the surprising thing – Buffett’s wisdom seems so commonsense and practical, and yet it can lead to great wealth.
1. Reinvest Your Profits
When you first make money, you may be tempted to spend it. Don’t. Instead, reinvest the profits. Buffett learned this early on. In high school, he and a pal bought a pinball machine to put in a barbershop. With the money they earned, they bought more machines until they had eight in different shops. When the friends sold the venture, Buffett used the proceeds to buy stocks and to start another small business.
2. Limit What You Borrow
Buffett has never borrowed a significant amount — not to invest, not for a mortgage. He has gotten many heart-rending letters from people who thought their borrowing was manageable but became overwhelmed by debt. His advice: Negotiate with creditors to pay what you can. Then, when you’re debt-free, work on saving some money that you can use to invest.
3. Develop your public speaking skills.
Buffett tells young people that their most valuable asset isn't a stock--its investing in themselves. And no investment will pay off more than improving your public speaking skills. In 2008, he talked about overcoming the fear of speaking. He acknowledged that he was once terrified of speaking in public. "I would get physically ill if I even thought about having to do it," he said.
Buffett conquered his fear by investing in a Dale Carnegie course and volunteering to teach investing at a local college. "I think the ability to communicate, both in writing and orally, is of enormous importance," he said.
At the 2011 shareholders meeting, Buffett told the audience that he displays just one diploma in his office--the one he received from taking the public-speaking course, which cost him $100 at the time. "It's incalculable how much value I got from that hundred dollars.If you can't talk to people, you've got a real problem."
4. Pick someone you admire and adopt
their qualities.
Buffett believes that you can become--to a large extent--the person you want to become. You can accelerate your success by emulating winners.
In 2000, Buffett said, "Just pick out the person you admire the most and sit down and write out the reasons why you admire them." And then, he suggested, take on those qualities.
Buffett said to look at things like personality, character and temperament. "It's not complicated," he said. In 2004, Buffett added, "Hang out with people better than you. Pick people whose behavior is somewhat better than yours and you'll drift in that direction."
If you want to drift into a successful direction, pick Buffett as one of those people you admire. Now you have 120 hours to hang out with him.
5. Read Books
Buffett and Munger are both voracious readers. In 2007, Buffett told shareholders that he had read every book on investing in the Omaha public library--at the age of 10.
In nearly every meeting, Buffett refers to one book that changed his life--Benjamin's Graham's The Intelligent Investor. "All of the important ideas are in that book," he told shareholders.
Specifically, he tells the audience to read chapter eight on short term market fluctuations, which underpins on one of Buffett's most successful investing philosophies: Sell when others are greedy and buy when others are fearful.
WARREN BUFFET
By TradeFlo
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