Warren Buffett, the hallmark of success, specifically when it comes to investing in stocks. His total wealth has become above $70 billion, one of the richest men in the world which is absolutely crazy!
By making wise investments in the world of stocks and shares, Warren Buffett made his billions, making him the smartest investor ever to walk the planet.
Warren Buffett’ssecrets of success
Generally, people want to hear the advice from Buffett when it comes to being prosperous in their own lives.
In this article, you’ll learn 10 secrets of success lessons that were given by Warren Buffet.
Reinvestment in business is always a major key to positive growth, but especially when it comes to something like stock trading.
After all, if you make money on the stock market and spend the profit, then next time you’ll only have the same amount to invest. And that won’t help you with the rapid growth at all.
That was something Warren Buffett knew pretty quickly. One of his first projects was buying a pinball machine and installing it in a nearby barbershop with a friend.
He didn’t go out, wasting his share of this machine’s profits on stuff he didn’t need. He went out and bought more computers that could be put in other stores.
Then when this plan came to an end, he reinvested the gains into the stock market again, which in the future served him very well.
Spend your money wisely
Another, Secrets of success lessons from Buffet is to spend your money wisely. Please don’t waste your money on the things you don’t need, and wisely spend it on the things you do.
Also, save money so you can invest later in yourself when you’re able to.
Be careful when it comes to borrowing
If you’re someone who takes out a lot of loans and maximizes your credit card, you won’t get rich. You’ll end up with ever-increasing debts, and if you’re not careful, it will start snowballing.
Buffett has never borrowed a significant sum of money, and he recommends to those with unpaid loans that once they have repaid and are debt-free, they can start saving what they can to spend later on.
Don’t be scared to be different
The reality is that most people are going to copy other people who have already become successful.
I don’t blame them, I do it too myself, but that’s not always the best way to go. If you copy others forever, you will never be able to give your image and personality, your thoughts, and dreams to anyone.
Usually, it’s only the ones who try to be different, who find the next big thing that people fall in love with. Warren said the average person is going to be the one who copies other people, but he didn’t want to be an average person.
He wanted to be better, and he tried to judge himself against his standards.
Persistence is key
Persistence is the key to the mastery of every skill. It’s another secrets of success that you just have to keep going until you surpass the barriers to success.
In 1983 Warren Buffett bought the Nebraska Furniture Mart, mainly because the way Rose Blumkin, the Mart’s founder, did business appealed to him very well.
Rose was an excellent negotiator, and as part of her marketing plan, she had managed to undersell the big shots. The Furniture Mart didn’t begin as a big shop. Over time it has developed from just a small pawnshop into the largest furniture store in North America.
It was because Rose had the persistence and determination to make it into what it ultimately became that this furniture mart became so popular and was able to defeat its competitors.
Knows the definition of success
You will note that despite being a billionaire and one of the world’s richest people; Warren Buffett does not measure his success in terms of how much money he has.
In reality, there was a point in his life when he was willing to donate nearly all his money to charities.
Instead of gaging wealth-based success, Buffett says it’s all about getting lots of people around you who love you and that you love yourself too, particularly as a man of his age.
So think about what you’re really describing as success. Check out this article for calculating your real success.
Limit your small expenses
Small unexpected expenses can destroy businesses down to the last second without even noticing them. If it’s the cost of shipping, the cost of packaging, the empty stock left unnoticed, you name it.
If this happens too much without people noticing it, then prices would be far higher than what people make them out to be, and the company will lose vast sums of money potentially.
Buffett invests in companies run by administrators that are concerned with the smallest costs.
He once bought a business whose owner counted the sheets in 500-sheet toilet paper rolls to see if (he was) being cheated.
He also admired a friend who would paint only the side of his office building facing the road.
Think about things in the long term
Especially when it comes to stocks and shares, the long-term investment would most likely be able to reap more benefits than hoping to make a quick profit.
The same applies to bank interests. The longer you’re able to tie up your money for, the greater the percentage of interest you’ll get.
Assess the risks
When you’re an entrepreneur, it’s pretty much essential to take risks, but you can still evaluate the risk you’re thinking of taking.
When assessing risk and weighing up possible drawbacks, it will always help you make a better decision for yourself.
In 1995, the FBI had accused Buffett’s son’s employer, Howie, of price-fixing. Buffett advised Howie if he remained with the organization, to consider the worst and best case scenarios.
His son learned quickly that the dangers of remaining greatly outweighed any future benefits, and he left the next day.
Know When to Quit
The last secret of success lesson from Warren Buffett is always to know when to quit.
In stock trading especially, it is so damn important to know when to quit. If you don’t know when to accept mistakes and losses, you’re going to make the hole more significant, and start losing even more.
Buffett says you need to know when it’s time to accept a loss and move on before the whole ship ends up sinking.
He once went to the racetrack, when Buffett was a teen. He placed a bet and lost on a race. He’s betting on another race to recoup his money. He lost again, with almost nothing left him. He felt bad, he had lost his week’s earnings. Then he never repeated that mistake.