Over the course of several decades, iconic investor Warren Buffett, has offered up plenty of useful advice to demonstrate the core life, and business principles, that have helped him achieve his legendary success.
Nearing the age of 90, Buffett, the world's sixth wealthiest person, whose inspiring common sense, just might transform you, if you actually apply it.
Here are Ten Buffett rules of success to move you, farther and faster in life.
1. Reinvest Your Profits.
When you first make money, you may be tempted to spend it. Don’t do that. 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 profits to buy stocks, and to start another small business.
2. Be Willing to Be Different.
Don’t base your decisions upon, what everyone is saying or doing. When Buffett began managing money in 1956, with $100,000 cobbled together from a handful of investors. He worked in Omaha, not on Wall Street, and he refused to tell his partners, where he was putting their money. People predicted that he’d fail, but when he closed his partnership 14 years later, it was worth more than $100 million.
3. Never Suck Your Thumb.
Gather in advance any information you need to make a decision, and ask a friend or relative to make sure, that you stick to a deadline. Buffett prides himself, on swiftly making up his mind, and acting on it. He calls any unnecessary sitting and thinking “thumb-sucking.”
4. Spell Out the Deal Before You Start.
Your bargaining leverage is always greatest, before you begin a job, that’s when you have something to offer that the other party wants. Buffett learned this lesson the hard way as a kid, when his grandfather Ernest hired him and his friend, to dig out the family grocery store after a blizzard. The boys spent five hours digging, until they could barely straighten their frozen hands. Afterward, his grandfather gave the boys less than 90 cents to split.
5. Watch Small Expenses.
Buffett invests in businesses run by managers, who obsess over the tiniest costs. He once acquired a company, whose owner counted the sheets in rolls of 500-sheet toilet paper to see, if he was being cheated, ("he was"). He also admired a friend, who painted only the side of his office building that faced the road.
6. 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. Buffett advice is: "Negotiate with creditors to pay what you can, Then, when you’re debit-free, work on saving some money that you can use to invest."
7. Be Persistent.
With tenacity and creativity, you can win against a more established competitor. Buffett acquired the Nebraska Furniture Mart in 1983, because he liked the way its founder, Rose Blumkin, did business. A Russian immigrant, she built the mart from a pawnshop into the largest furniture store in North America. Her strategy was to undersell the big shots, and she was a merciless negotiator.
8. Know When to Quit.
Once, when Buffett was a teen, he went to the race track, He bet on a race and lost, To recoup his funds, he bet on another race, He lost again, leaving him with close to nothing. He felt sick — he had wasted nearly a week’s earnings. Buffett never repeated that mistake, again in his life.
9. Assess the Risks.
In 1995, the employer of Buffett’s son Howie, was accused by the FBI of price-fixing. Buffett advised Howie to imagine the "worst and best-case scenarios", if he stayed with the company. His son quickly realized that, the risks of staying far outweighed any potential gains, and he quit the next day.
10. Know What Success Really Means.
Despite his wealth, Buffett does not measure success by dollars. In 2006, he pledged to give away almost his entire fortune to charities, Primarily the Bill and Melinda Gates Foundation. He’s adamant about not funding monuments to himself, there is no "Warren Buffett buildings or halls." He Says “When you get to my age, you’ll measure your success in life by, how many of the people you want to have love you, That’s the ultimate test of how you’ve lived your life.”
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