If scientists were to discover a more inspiring way, they could not out do testimonies. There is nothing much inspiring as a true story. It raises hope and motivates. One of this stories and inspiration in the business world is about the American business magnate and investor Warren E. Buffett. Born in 1930, Warren Buffett became interested in business while in his twenties and then bought some stock in Berkshire Hathaway textile company in 1962, he aggressively bought shares afterwards and in 8 years’ time he became the largest shareholder in Berkshire Hathaway.
He is called ‘wizard’ by most investors because he did his investment wisely. Warren has a net worth of $ 72 billion. He thus says, “The Basic Ideas of Investing are to look at stock as business, use the market’s fluctuations to your advantage, and seek a margin of safety. That’s what Ben Graham taught us. A hundred years from now they will still be the cornerstones of investing.”
Besides being a millionaire, Warren Buffett is a philanthropist and, in most cases, he takes his time to give motivational talks and thus, he is widely respected. From the life of this investment giant, we can learn various lessons.
Here are 10 most precious lessons an aspiring investor must take from the life of Warren Buffett
1. Do your investment wisely
Warren choose wisely on the companies to invest. He picked Berkshire Hathaway because he had seen its potential of growth in the changing world. He took time to invest in ideas some of which his mentors inspired in him, and in the long run they paid off.
2. Don’t Live above your means
Buffett lives in a very humble house which he bought for about $32k in 1958. Warren lives a simple and humble life than most of the people who are struggling to earn a living. He is simply living below his means. He doesn’t spend what he has not earned or created.
3. Embrace the culture of saving
According to Buffett, savings come first before expenditure. Before dishing out money for bills, the amount for savings should be slashed out first and then the rest spent afterwards. By doing this way, the road to investment is set out clearly.
4. Build and guard your reputation
It takes a very long time to build a good reputation, but a very short time to destroy it. Warren has keen interest in maintaining his reputation and still build it day in day out by doing things differently. When he took an investment in Salmon Inc. he was accused of breaking treasury bidding rules and in1975 investigated for fraud after purchasing Wesco Financial Corporation, but through this his simple acts and paradigm working maintained his reputation.
5. Research before investing
Buffett usually invests time to research stocks, make thorough research of strong stock and then decide to invest it after studying market trends. This is why he is successful by doing research and then investing richly with confidence.
6. Make few meetings
Warren avoids regular meetings by sending a letter to his various companies, to outline the new year’s goals alongside celebrating the previous year’s success. This saves time that is utilized in useful economic activity as well as other resources such as money for planning a meeting.
7. Like your work
People who enjoy doing their work are always happy and successful. Working on what we love unlike advancing our career in jobs we don’t like, gives life a meaning and success is the result.
8. Associate with people
Warren as this idea that being with people is much far better than being alone. It is true because one gains new Ides if they surround themselves with focused people who are focused in achieving specific goals. These people will also motivate you towards achieving your goals .
9. Be patient
It is true that Nothing comes on a silver platter and it must be sought for. The road to success is always rocky thus one cannot run, they have to take careful steps. Instant gratification and obsession of results bring impatience and thus should be avoided.
10. Sometimes it is prudent to quit
As warren says, “Should you find yourself in a chronically leaking boat, energy devoted to changing the vessels is likely to be more productive than energy devoted to patching leaks.” He bought Dexter Shoe Company using $ 400 million and it brought huge losses, he had to quit it, but he picked lessons. While seeking to invest if something doesn’t work, just seek other means, don’t hold onto it blindly. But most importantly, pick lessons.
It is always inspiring to read success stories. Warren Buffett is a paragon of investors and business magnates. From his ventures and life one can borrow rich life lessons to apply in business and daily life. According to this rich man, making wise investment decision is key. He stresses that before one spends, they should save and spend carefully not gratifying themselves but being patient. He adds that one should like their work and engage focused people who inspire. Alongside these facts, reputation I key and should guarded jealously. Therefore, any wise potential investor can borrow some of these rich lessons.