(Read Part 1 Here)
Warren Buffett is one of the most successful businessmen of 20th century. Below are few of his golden rules & philosophy that drove his success.
1 – Happiness comes from within. In my adult business life I have never had to make a choice of trading between professional and personal. I tap-dance to work, and when I get there it’s tremendous fun.
2 – Find happiness in simple pleasures: I have simple pleasures. I play bridge online for 12 hours a week. Bill and I play, he’s “chalengr” and I’m “tbone”.
3 – Live a simple life: I just naturally want to do things that make sense. In my personal life too, I don’t care what other rich people are doing. I don’t want a 405 foot boat just because someone else has a 400 foot boat
4 Think Simply: I want to be able to explain my mistakes. This means I do only the things I completely understand.
5- Do not lose already Earned: Not losing hard earned money is far more important than making more money. Spend very wisely.
6 – Invest Simply: Do what you understand & that makes sense to YOU. Flow with the market rather than pretending to be smarter than God.
7 – Have a mentor in life: Tell me who your heroes are and I’ll tell you how you’ll turn out to be. The qualities of the one you admire are the traits that you, with a little practice, can make your own, and that, if practiced, will become habit-forming.
8 – Making money is not a goal: Making money isn’t the backbone of our guiding purpose; making money is the by-product of our guiding purpose. If you’re doing something you love, you’re more likely to put your all into it, and that generally equates to making money.
9 – Learn to Manage Hardship: I developed courage when I learned I could deal with hardship. You need to get your feet wet and get some failure under your belt.
10 – Find Worse Case Scenarios & try to Minimise them: Before Warren does anything, he and his partner “invert, always invert.” They list every way imaginable in which they could fail at a particular task and then take massive effort to avoid those failures.
11- Learn Nonstop: Go to bed a little wiser than when you woke up.
12- Do what you like & enjoy what you do: Do what you believe in – not what others are doing.
The End.
He may be boring but he is wise. Take wisdom from anywhere.
All of these points will make you think a bit. I really like the point about heroes, one must choose his/her heroes very carefully. This point is most imp for youngsters. Overall….nice Share 😉
Well here is how the charity will work out, as quoted by him at http://givingpledge.org/#warren_buffett “What I can do, however, is to take a pile of Berkshire Hathaway stock certificates — “claim checks” that when converted to cash can command far-ranging resources — and commit them to benefit others who, through the luck of the draw, have received the short straws in life. To date about 20% of my shares have been distributed (including shares given by my late wife, Susan Buffett). I will continue to annually distribute about 4% of the shares I retain. At the latest, the proceeds… Read more »
I think many people will like to follow him as far as the money making is concerned, where as concerning the lifestyle he would appear to be quite boring for the most.
By the way I believe he has already pledged to give most of his wealth in charity. Any idea when this pledge will become a reality? It would be interesting to know if he does this while he is still alive.