Warren Buffett’s Business Success Secrets
BORN: 30th August 1930, Omaha, Nebraska, USA
BUSINESS: Chairman & CEO of Berkshire Hathaway
INDUSTRY: Share Market Investor
INCOME: Net worth US$47 Billion
FORTUNE: Self Made
HOME: Omaha, Nebraska, USA
FAMILY: Wife, Astrid, 3 children, Susan, Howard and Peter
CHARITIES: Susan Thompson Buffett Foundation and many others
Warren Buffett is the undisputed king of investing. The unassuming-looking man from a Midwestern US state might be the last person that you would identify as a powerhouse in the dizzying, gilded, excess- laden echelon of the super-wealthy. But if you guessed that this rather plain man was just another Midwestern, down-home, good-hearted man living a simple life, you would be both right and very wrong.
The simple man from Nebraska is also one of the world’s wealthiest men. He has traded places with Bill Gates as the world’s richest man. His business acumen is legendary. He has a talent for picking investments that would give a person the impression that he has found a way to foretell the future. Buffett’s investment strategy made him a huge success, and he is now sought after as a guru by anyone seeking advice on making money.
Warren’s Success Secrets
- He grasps a few simple facts and figures, and makes his investment decisions on the same principles over and over. He has not changed his approach in any essential way since about 1950, upon first reading Graham’s book. He is a principled investor who looks for fundamental values. These values are both financial and less tangible. He looks for integrity in business leadership and advises people to “invest according to your convictions”.
- He approaches each investment with the idea of a long- term holding. One gem of Buffett advice is to “only buy something that you’d be perfectly happy to hold if the market shut down for 10 years”. Far from the shotgun diversification approach taken by most investors, Buffett’s method is one of selection, rather than pure acquisition. In the same vein, he says, “Our favourite holding period is forever.” And again, “Someone’s sitting in the shade today because someone planted a tree a long time ago.”
- Those who build enormous wealth are able to focus on letting those fundamentals drive everything they do, no matter how complex the actions become. A few pearls on investing from Buffett illustrate this point: “Patience pays—buy ‘em and hold’ em.” “Invest in businesses you understand.” “Buy at a reasonable price.” “Look for honest, able management.” These are the basic tenets of Buffett’s personal strategy. They contain simple, common-sense thinking with integrity.
- When asked, “What is the Warren Buffett secret to success?” his reply was; “If people get to my age and they have the people love them that they want to have love them, they’re successful. It doesn’t make any difference if they’ve got a thousand dollars in the bank or a billion dollars in the bank…. Success is really doing what you love and doing it well. It’s as simple as that. I’ve never met anyone doing that, who doesn’t feel like a success. And I’ve met plenty of people who have not achieved that and whose lives are miserable.”
- Warren Buffett also points out that the company that a person keeps can affect their success. If you want to be successful, rich or virtuous, seek out like-minded people—even people who have made more progress than you have. Warren Buffett most famously did that when he went to GEICO headquarters, knocking on the doors on a Saturday until he was allowed in. Warren says, “It’s better to hang out with people better than you. Pick out associates whose behaviour is better than yours and you’ll drift in that direction.”
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Warren’s Success Quotes
- Chains of habit are too light to be felt until they are too heavy to be broken. ~ Warren Buffett
- I always knew I was going to be rich. I don’t think I ever doubted it for a minute. ~ Warren Buffett
- It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently. ~ Warren Buffett
- It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction. ~ Warren Buffett
- We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful. ~ Warren Buffett