Where do you start with warren Buffett widely recognized as the world’s shrewdest investor the sage of Omaha is now 90 years young and still doing out nuggets of advice to investors across the globe. Here are the Top 10 Warren Buffet advice that could really change your life for real.
Using his investment expertise he had a massive fortune of some 79 billion dollars making him the fourth wealthiest individual in the world. Buffett serves as the conglomerate’s chairman and CEO. Its headquarters are in Omaha, Nebraska. Here is the Top 10 Warren Buffet Advice and some motivational things I’ve learned from Buffett that we can all apply today to succeed in life and business.
1- Do work that you love
Warren Buffet Advice that success comes when you do what you love. Warren Buffett insists that we all follow this rule because he lives by it. He claims that if you are passionate about what you do, you will never have to work a day in your life.
2- Don’t thumb suck
Warren Buffett takes pride in acting quickly and decisively based on his decisions. He deems any unnecessary daily dollying as thumb-sucking. Do your research thoroughly well in advance, gather all the necessary information and act decisively and say no if you have to.
3- Spell out the specifics of a deal beforehand
It’s 3rd in the list of Top 10 Warren Buffet Advice. Warren Buffett recalls how his grandfather Ernest hired him and a friend to clear the family grocery store after a blizzard when he was a young boy. The boys’ hands were numb to the point where they could hardly straighten them after five hours of shoveling. Following that, their grandfather gave the two less than 90 cents each to divide.
Buffett was horrified that he put in such arduous effort for so little pay. Even when dealing with friends and family, make sure that all the details of the agreement, including your financial advantages, are spelled out in advance. When you have something to offer that the other party wants before a job starts, your negotiating power is always at its highest.
4- Assess the risk involved
Think about the worst and best possible scenarios and promptly make the most rational progressive decision that’s basically the advice Buffett gave his son hoey when the FBI accused the younger Buffett of price fixing in 1995. Hoey quickly realized that the risk of staying in his then-troubled company far outweighed any potential gains and so he quit the next day. Making careful risk assessments can help you identify your weak points and direct you toward more informed choices.
5- Exercise vigilance over every expense and spending
It’s fifth in the list of Top 10 Warren Buffet advice. Warren Buffett is renowned for practicing economic living and motivating others to do the same. He continues to reside in the same home that he purchased for just $31,500 when he was 28 years old. Being careful and sensible with your money helps you avoid wasting it, and when you don’t waste it, you make your money work for you and accumulate enough savings to make future investments.
6- Limit your borrowing and what you owe others
Even when he was just starting out in business, Warren Buffett has never taken on too much debt. He says nothing sedates rationality like large doses of effortless money. He has always made an effort to negotiate a payment schedule with his creditors and has been saving money to put into the market once he is debt-free. You won’t become wealthy by surviving on handouts, loans, and credit cards.
7- Reinvest your profits
In high school, warren Buffett and a friend bought a pinball machine and put it to work in a barbershop. They purchased additional machines with the money they made until they had eight in various shops. Later, the friends sold the business, and Mr. Buffett used the money to start another company and buy stocks. He had accumulated $174,000 by the time he was 26 years old, which would be worth roughly 1.4 million dollars today. Search widely for investment opportunities and keep investing as though you only have one life. With only 20 punches on a punch card, each one counts. If you are diligent enough to value content over form, even a small investment can result in significant wealth.
8- Judge yourself by your own standards
Don’t let other people’s actions or words influence your decisions, success, or even happiness. Buffett points out that you are not required to hit everything; instead, you can wait for your pitch. The problem when you’re a money manager is that your fans keep yelling swing your bum instead of following the crowd, measure yourself by your inner scorecard your own standards, and not the world.
9- Be consistent and patient
According to Warren Buffett, time is on the side of the great companies and against the mediocre ones. The difficult and exhausting journey to success teaches us many important lessons and adds to the sweetness of victory. So be patient and keep pressing on. Don’t obsess over quick results and instant gratification. Success does not come easily, not even for Warren Buffett.
10- know when to quit
It’s the last Warren Buffet advice, Like everyone else, Warren Buffett makes mistakes, but he learns from them and doesn’t make the same ones again. He recalls I bought a company in the mid-90s called dexter shoe and paid 400 million dollars for it and it went to zero and I gave about 400 million dollars worth of Berkshire stock which is probably now worth 400 billion dollars but I’ve made lots of dumb decisions this part of the game. He is however quick to add. If you find yourself in a boat that leaks constantly, your efforts would probably be better spent changing boats rather than trying to fix the leaks.
Related: Top 10 businesses that never fails
Recognize when to walk away from a loss and keep in mind that higher-quality companies are more likely to expand and increase cash flow than lower-quality ones, which frequently deteriorate. Which of Warren Buffett’s lessons do you find most compelling, and why? Please share this with your friends and family by leaving a comment below.