Warren Buffett’s Tips for Success in Life:
With a fortune of over $ 80 billion and ranked as the greatest investor of all time, Buffett is recognized for his commitment to investing in value.
And when we talk about value investments we are not only talking 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, the importance of the investments we make in ourselves stands out for him. According to Buffett, you will never get a higher return in life than in what you invest in yourself.
So here are the best tips on how to invest your money, time, and resources according to Warren Buffett.
1. The importance of reading:
It all starts here. You need to develop healthy habits that allow you to function to your full potential, otherwise, you will not be able to rise to the occasion in your life.
Warren Buffett believes that reading works the same way that compound interest does; Every day that passes you are building knowledge, adding information, and reading to it.
Over time these will be exchanged with each other, generating new ideas and knowledge that you can implement in concepts and strategies that facilitate your investment process, your business ideas, and life in general.
Warren Buffett admits that he spends about 80% of his day reading, and according to him, this is the reason why he manages to make sound and intelligent investment decisions.
If you ask him, for him it is not a matter of the number of pages you read in a day, no, everything is limited to your ability to critically and deeply analyze the material you are studying.
This is the way to take your knowledge and money to a whole new level and reap the returns from this intellectual investment for years to come.
2. Cultivate positive habits in your daily routine:
One of Warren Buffett’s quotes that I like best 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 against your goals.
After you start, schedule yourself to do it tomorrow, you don’t need to start too big, just take small steps that build a routine in your life.
One of Warren Buffett’s pieces of advice that best expresses the importance of habits is that “what you do now is what determines how your body and your mind will function 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 allow you to be smarter.
An example of this is that, at 21, Buffett was terrified of speaking in public. So he decided to invest $ 100 in a Dale Carnegie course on public speaking.
This course ended up being a great investment, to the point that it helped him propose to his wife.
This need to be learning new things 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, as have I. If we had decided to stay with 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 college, which is a mindset that will hardly allow them to progress.
These tips from Warren Buffett show us that life is a process of continuous learning, and there are many ways to do it. For example:
- Attend conferences, seminars, and meetings that are on topics of interest to you.
- You can study online, from online master’s degrees to training courses on specific topics.
- Talk to people and ask them questions (listen more than you talk).
- Spend time researching those topics that interest you and move you.
- Travel more, there are many ways to earn money traveling so don’t just stay in one place for your entire 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 next to you making you a better person or are they taking you down with them?
- Are most positive or do they usually have a “glass half empty” view?
- Do you feel better when you are around him or do you feel worse?
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 spend with them.
While this can be difficult when it comes to a family member or colleague at work, you will need to 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 have learned that it pays to surround yourself with people who are better than you; because you will float a little more and ascend. While surrounding yourself with people who behave worse, it will not take long to slip. It just works that way. “
5. Success is a process that takes time:
The more than 80 billion dollars that Warren Buffett accumulates are the product of many years of hard 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 Cities Service Preferred company at $ 38 each.
- At a very young age, Buffett was already earning $ 175 per month, thanks to his various jobs such as delivering the newspaper The Washington Post, which he later acquired.
- His other jobs were selling used golf balls, and stamps, car polishing, running a pinball machine business, and turning a horse track into a lucrative recreational park. All of this translates into having more than $ 53,000 saved by age 16.
So, immediately start working on the projects that you are passionate about. Be creative, look for new sources of income, learn to earn extra money in your spare time, and constantly look for new business opportunities.
When you have a mentality of growth and seeking opportunities, 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 Warren Buffett’s case, his habits and decisions began to show results. For example, more than 99% of Buffett’s fortune was accumulated after he turned 50 and in 2013 he managed to earn an average of 37 million per day.
6. Have a methodical approach:
Within Warren Buffett’s advice, you will find the importance of judicious decisions, based on hard data and information.
In Buffett’s case, this is based on the numbers, the facts, and most of all, the 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 these are not influenced by the opinion and perspective of others, relying on raw numbers has allowed him to achieve ridiculously high returns throughout his years.
An example of this is that if you had invested $ 1,000 in the Berkshire Hathaway company in 1964, which was a textile company about to fail, and that was acquired by Buffett and turned into his financial conglomerate, today your investment will be valued at 11.6 million dollars.
In business, and investments, it is important to hurry and capitalize on the business opportunities that are presented to you, but not in any way, nor by making impulsive decisions, on the contrary, apply this advice from Warren Buffett and have a methodical criterion.
7. Spend time getting to know yourself:
To be successful in life you first have to know what your calling is, that is, you must discover and build your life purpose.
As Warren Buffett puts it, “Never stop looking for the job you are passionate about. Try to find the job you would have if you were rich. Forget about 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 when 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 enough to be wasted doing something that does not fulfill you; Rather, invest part of it by getting to know yourself better. Here are some ways to do it:
- Meditate, even if you think that you are not capable of doing it. Here is a guide to learning to meditate.
- Practice yoga, in this way you will connect your mind with your body.
- Write some notes in your journal in the morning. Give thanks every day for those people and things that you have in your life.
- Find hobbies that you enjoy (and get serious about them).
You only have this life, why not live it to your fullest potential? Invest as much as you can in yourself at this moment, you will surely see results that you would never have thought.
8. Learn to influence other people:
Warren Buffett, his most decisive and valuable skill throughout his life was to influence and persuade other people.
As we mentioned earlier, one of Buffett’s first investments was taking Dale Carnegie’scourse, which later became the book How to Win Friends and Influence People to learn to communicate and influence people. that he had by his side.
Without his influence, Buffett would not have been able to buy so many companies, get investors out of the way, convince them to work for him for 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 his office wall is from the Dale Carnegie course. For him, this is one of his greatest achievements.
9. Take calculated risks:
When fear and uncertainty come, this businessman takes enormous financial risks and invests in stocks, in foreign countries, and buys companies on the verge of bankruptcy.
While most investors become cautious and nervous during downturns, Buffett seizes opportunities to generate income.
As he puts it, “I will tell you how to become a millionaire. Close the doors. Be fearful when they are greedy. Be greedy when others are fearful ”
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 a quick buck here and there, buying and selling on the same day, in the same week, or in the same month. Your investments are here to stay and your patience has brought you good results.
The results? Warren Buffett has managed to beat the market for several years in a row, has been listed as the best investor of all time, and has had a return of more than 15% for more than 20 years.
10. Live with less than what you have and invest:
Finally, if Warren Buffett had not reduced his expenses or saved money, he would not have had the opportunity to face the market, to beat it, much less accumulate so many billions of dollars.
So one of Warren Buffett’s key tips for success is, to learn how to save money and get started right away.
Warren Buffett’s life is proof of this, as he leads a rather frugal lifestyle; So much so that he still lives in the same house he bought in 1956 in Omaha for $ 31,500.
And even though his investments yield returns estimated in millions of dollars, his salary at Berkshire Hathaway is $ 100,000 a year, which allows him to live a life far from luxuries and eccentricities.
Conclusions.
These tips from Warren Buffett that you just read are the building blocks that enabled the “Oracle of Omaha” to build a life of success and wealth. Buffett is said to have donated more than $ 20 billion in his lifetime, 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 tested by one of the richest men on the planet, you can follow the advice of Warren Buffett.
