Time Money published a report on Warren Buffett’s most important secrets and advice, both in the world of finance and in life in general. It’s well known that the American billionaire, Buffett, who is the third richest man in the world, is generous with his valuable advice, and continues to distribute it to those around him to expand the base of those who benefit from it.
Although there are many reasons for success in Buffett’s story, he attributes the greatest secret to his success to his lifelong commitment to learning. Throughout his more than half-century of struggle, the billionaire has never stopped learning new things. While a person might benefit from a piece of advice they hear here and there, the journey to success requires more than that. It requires a relentless pursuit to learn new things every day.
Warren Buffett’s 10 Secrets to Success in Life
1. It may be enough for a person to do a few good things in his life as long as he does not make many mistakes.
2. If one finds holes in his boat, the energy expended in replacing the entire boat will be more productive than that expended in trying to plug the holes.
3. One does not necessarily need to do exceptional things in order to achieve exceptional results.
4. The lesson learned from learning history is that people are not considered part of history.
5. A person does not feel the restrictions of habits until they become so strong and heavy that he is unable to break them.
6. Some people have a bad habit of making easy things difficult.
7. Nothing deters reason and sanity more than a lot of money that comes without effort.
8. It takes a person twenty years to build a good reputation and only five minutes to ruin it. If he realizes this, he will take his path differently.
9. It is better to be with people who are better than you. You should choose people with better behavior than you, and you will automatically find yourself following their example.
10. The price of something is what a person pays, but its value is the benefit he gets from buying that thing. The best time to buy anything, from socks to stocks, is when its price is low.
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On the investment side, the report revealed Warren Buffett’s secrets to his success throughout his career in the world of finance and business, which help those who understand and comprehend them succeed and enter the world of the wealthy.
Warren Buffett’s 10 Investing Secrets
1. The most important trait of an investor is “temper control” rather than “intelligence.” He needs a “moderate temperament” that doesn’t cause him to become “excessively happy” when he’s around people or turn against them.
2. Successful investing requires time, discipline, and patience. Some elements of the investment process take time, no matter how much talent and effort are invested.
3. One does not need to jump over high barriers to reach one’s goal. One must look around for the shortest barriers that suit one’s capabilities to continue on one’s path.
4. In the short term, the market is a competitive arena, but in the long term, it is an “evaluation machine.”
5. Opportunities don’t come often, and when it rains gold, one should be careful to fill a bucket, not a thimble (a short metal tube that a tailor puts on his finger).
6. Diversity is a protection against the consequences of ignorance, but it doesn’t make much of a difference to people who know what they’re doing.
7. A stock that an investor does not intend to hold for ten years should not be held for even ten minutes. He should prepare a list of companies whose earnings have been rising steadily over the years, because these will be the same companies whose market value has been rising steadily.
8. The criteria for investment success are not determined by assessing the sector’s impact on society or its growth rate, but rather by identifying the competitive advantage of each individual company and assessing the sustainability of this advantage.
9. Businessmen become better investors, and investors become better businessmen.
10. Buying an excellent company at a moderate price is much, much better than buying an average company at a great price.
Buffett has also drawn numerous insights and lessons from his long struggle, which spanned more than five decades, that provide a more comprehensive and understanding view of the reality of life and investing.
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5 insights Buffett learned from his struggle
Vision 1 : “I’ll tell you how to get rich. Close the door. Back off when others are ahead. Advance when others are afraid and back off.” Buffett means that one of the most important keys to successful investing is buying a stock when its price is low and selling it when it is high.
Vision 2 : “I tell college students, ‘When you’re my age, you’ll only be successful if you make the people you want to love love you.’” Money isn’t the most important thing in life, and Buffett believes that achieving wealth isn’t limited to money alone, but extends to other elements such as fame, behavior, and gaining the trust and respect of those around you.
Vision 3 : “The difference between ‘successful people’ and ‘actually successful people’ is that ‘actually successful people’ say ‘no’ to almost everything.” Many high achievers, such as Steve Jobs, Bill Gates, and Warren Buffett, attribute their superiority to a single, goal-oriented approach. Successful people have a long list of ‘goals’ to achieve and work tirelessly to become more productive, one after the other. But ‘great people’ don’t have a list, which sets them up to achieve unexpectedly great goals.
Vision 4 : “I find that more and more people fail because of debt. If you’re really smart, you can make a lot of money without debt.” There are infinite paths to success, but limited and well-known paths to failure. One must learn from the failures of others before their own successes.
Vision 5 : “What an investor needs is the ability to evaluate the performance of specific business sectors. You don’t have to be an expert in all companies, or even many. You only need to evaluate companies within your competitive environment. The size of that environment doesn’t matter; what matters is knowing its boundaries.” This statement simply means that an investor should focus on companies whose activities they understand and whose performance they can evaluate, and should completely avoid companies whose activities they don’t understand and whose performance they cannot analyze.
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