10 Lessons We Can Learn From Warren Buffett

10 Lessons We Can Learn From Warren Buffett
Posted in Famous Entrepreneurs, Investing

warren buffett rich

“You only have to do a very few things right in your life so long as you don’t do too many things wrong.”

Warren Buffett is no doubt the most successful and admired investor of all time and is a personal hero of mine. In this article we will take a look at 10 important lessons we can learn from the world’s richest and most successful investor of all time.

1 Always reinvest your profits

Warren Buffett learned from an early age to always reinvest his profits and have his money make more money for him. Warrant Buffett saw money as a worker that he controlled. Warren Buffett built his enormous fortune by continually reinvesting his profits over and over again until he got to where he was today. Starting small at a young age, Warren kept on reinvesting the money he made from his businesses into the stock market. He started with nothing and kept on reinvesting his money to make more money until he became what he is today.

2 Don’t follow the crowd

When Warren Buffett started managing other people’s money in 1956 he went against the norm, choosing to work in Omaha and not Wall Street. People initially saw him as a bit of an oddball but he eventually proved them all wrong. Warren had faith in what he was doing and stuck to his guns even when people were telling him he would fail. To be average you can just do what everyone else is doing but to be successful you must follow your own heart and have faith in your decisions. Never be afraid to go against the crowd.

3 Do what you love doing

Despite being the wealthiest man in the world, Warren Buffett measures his success as being able to do what he loved doing his whole life. When you have as much money as he does it is clear to see he works because he loves his job not for the money. He has pledged to give away over $30 billion to the Bill and Melinda Gates Foundation.

4 There is more to life than money

Warren does not see money as the only measure of a man’s success.

“When you get to my age, you’ll measure your success in life by how many of the people you want to have love you actually do love you. That’s the ultimate test of how you’ve lived your life.”

5 Keep Learning

Warren Buffett was a huge fan of Benjamin Graham and was always learning new things from his investing heroes throughout his life. Buffett spent his childhood reading everything he could about investing and his hard work paid off big time. Never afraid to learn new things, Buffett continued learning from those around him throughout his life and never once thought that he knew it all.

6 Be frugal

“Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.”

Warren Buffett was notoriously disciplined with his approach to money and even when he had made his first million he would watch every penny like it was his last. Despite having a multi billion dollar net worth he only paid himself a very modest salary of $100,000 per year. Warren would watch his expenditures like a hawk and was aware at all time of exactly how his money was being spent. Throughout his life he has never indulged himself with many fancy things despite being the richest man in the world. A testament to Warrens frugality is that he has lived has lived in the same modest house his whole life.

7 Believe in yourself

“I always knew I was going to be rich. I don’t think I ever doubted it for a minute.”

Warren was a shy kid in many respects but he always believed in himself when it came to money. He knew how good he was and had the faith and courage to follow his heart when he needed to.

8 Avoid Debt

Warren Buffett never took on any notable debts during his life and you should try and do the same. I am sure his advice would be to pay off your debts as soon as possible and start saving and investing anything you can.

9 Be careful who your friends are

“It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.” -Warren Buffett

Warren would always surround himself with other successful people and would take advice from people that were smarter than him. He knew full well that if you hang around with successful people that their attitudes, positive energy and success will rub off on you. Surround yourself with great people and they will inspire you to do great things.

10 Never gamble with your money

“Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.”

This is a simple lesson that Warren always took seriously. The big investment risks that Warren took during his life were always strongly weighted in his favor thanks to his diligent and meticulous research.

I hope you enjoyed reading this article as much as I did writing it. We can all learn a great deal from Warren Buffett. His success is a testament to his intelligence and wisdom.