Warren Buffett has reached many highs and peaks of success in his life that most of us could only dream of. He is one of the best investing minds we have, and has amassed an incredible fortune from studying the investment market. What better man to take advice from. We have collected Buffett’s life-lessons that he has used to gain success. These tips will help you to become a better entrepreneur or leader in any line of work and to be the best that you can be. If you want to be successful in work, or simply want to have an entrepreneurial mindset, keep reading!
Buffett has often stressed the value he has placed on public speaking and how instrumental it is to his business. Of all the many skills he has learned over his illustrious career, improving his confidence with public speaking is one of the things that he believes was vital to his accomplishments. Buffett was originally petrified of speaking to crowds of people, to the point where he would feel physically ill. However, the mogul knew how often he would have to do it, so he took part in a Dale Carnegie public speaking course that cost $100. His mantra is recognise what scares you, and do it anyway. In an interview for ‘Getting There: A Book of Mentors’ Buffett said “That $100 course gave me the most important degree I have. It’s certainly had the biggest impact in terms of my subsequent success”.
Invest in Yourself
The most important investment is in the thing you know best, that will get you the greatest returns – yourself. You are stuck with yourself for the long term, so you need to take time to take care of your body and mind. The value of stocks rise and dip with unprecedented shock, whereas your body is a valuable investment for the future. Find out what it is that you want to do and study and continue to learn in this area.
Follow Your Passion:
Buffett realises that much of his success with stocks is due to his genuine love of the stock market. To follow a vibrant, lively and sometimes dangerous thing excites him. To study it and plan ahead before investing is an adrenaline rush of sorts. When giving advice to others in any career path, Buffett highlights the importance of liking your job. Finding your passion and giving it everything you’ve got is crucial to live a life where you’re satisfied in the workplace. On passion, Buffet told students at the University of Georgia in a speech, ‘‘the real thing to do is to get going for some institution or individual that you admire. I mean it’s crazy to take in-between jobs just because they look good on your résumé, or because you get a little higher starting pay’’. When hiring staff Buffett always looks at the enthusiasm each candidate has for the job. If you genuinely enjoy a job, you will do everything to a high standard.
Choose a Mentor
Many people benefit from having a mentor or role model, someone to look up to and aim for their level of success. Buffett is one of those people. He states that having a person you admire as a mentor will reignite your passion and encourage you to replicate their work process, to make yours more profitable. Soak up all you can from these figures. Buffett famously said “Hang out with people better than you. Pick people whose behaviour is somewhat better than yours and you’ll drift in that direction”. Surrounding yourself in good company is half the battle. Buffett realises that he is that person in many people’s lives. Perhaps he may also be yours.
Don’t Use Credit Cards
Buffett detests the popularity of credit cards as he believes they are an easy way to fall into debt. Cash is king to him, and it could be to you if you follow this life advice. Paying with cash aids you as you can visually see how much money you have, and therefore curbs your spending – especially those impulse purchases. If you do not have enough cash on you, then unlike a credit card, you cannot make the purchase. Learn to have willpower over your spending and become frugal. Before trying to earn money Buffett first warns people not to fall into debt. Buffett also tells people to always carry cash on themselves, as he does, to always be prepared in the case of an emergency. He likes to have this cash ready to go for when he needs it to strike on the stock market, because the right moment may never come back again.
Always Be Kind
This is a simple tip which is sometimes the hardest to follow: always be kind. In today’s busy society where people are rushing chaotically to get what they want, particularly in the finance world, kindness is overlooked. Buffett encourages people to be kind, as everyone you meet can aid you in some way, so you don’t want to turn them off you. Shares, like people, are a fickle thing and can turn on you with the drop of a hat, so you want to have a good reputation in order to get help.
Don’t Buy Popular Stocks
This one may surprise fans of Buffett, but is practical advice. From his life experience studying the investment systems the Nebraskan native has learned to stay away from stocks that are extremely popular, which often turn out to be overvalued. He likes to examine businesses and spot a bargain in the shape of low priced shares that few others are looking at. The seemingly uninteresting stocks are often the most lucrative, as they regularly give back large and consistent dividends. Buffett examines at stocks intrinsic value when deciding to invest. To do this he investigates their fundamentals over a lengthy period, such as five years, and projects their return on equity, operating margins and debt levels. He then contrasts it with competitors.