10 Rules of Warren Buffett to Get Rich
Apart from being one of the wealthiest self-made men of the 20th century, Warren Buffett is a university in itself we refer to when it comes to investing wisdom and learning financial strategies. The AGM of his company, Berkshire Hathaway, is a sort of pilgrimage for value investors and his annual report is a storehouse of investment wisdom for all retail and institutional investors. Here are 10 Rules of Warren Buffett to Get Rich you in good stead especially through your investment journey.
Warren Buffet Success Lessons | 10 Rules of Warren Buffett to Get Rich
Rule 1 | Invest In Yourself | 10 Golden Rules of Warren Buffett
Learning to invest in yourself may be the most profitable investment you ever make. It yields not only future returns, but often a current pay-off as well. According to Buffet, the surest way to achieve a better quality life, and be successful, productive, and satisfied is to place a priority on investing in both personal and professional growth. “The best way to achieve wealth is always to pay yourself first,” Buffet says. Part of Berkshire Hathaway’s success is due to the fact that Buffett put his money where his mouth was and invested in himself.
Rule 2 | Be Willing To Be Different | 10 Rules of Warren Buffett for Smart Investing
For Warren Buffett to be above average, you need to measure yourself by what he calls the Inner Scorecard, judging yourself by your own standards and not the world’s. The idea is that when you are convinced then don’t change your mind just because the entire market is acting in the other direction. It is this conviction in yourself that will hold you in good stead always. So find Your Special Element and act in that !!
Rule 4 | Bounce Back From Rejection | 10 Rules of Warren Buffett for Prosperity
We’ve all been rejected at one point or another — whether it be from a new love interest, a job you applied to, or a group of friends. If Buffett had quit after Harvard dismissed him, he wouldn’t be where he is today. Getting rejected doesn’t have to be the end-all be-all, and the experience can actually help you in the long run to become more resilient in your life.
Rule 5 | Communicate in Person | 10 Rules of Warren Buffett for Financial Wisdom
Follow Buffett’s advice and don’t underestimate the value of face-to-face communication. When it comes to communicating something, we have a whole variety of channels open to us — which means we have to make a decision about the best way to convey something. But when you’re trying to achieve a business or personal goal, sometimes a phone call or email just won’t cut it. If the issue is complex, or may yield a lot of follow-up questions, in-person connection is the way to go.
Rule 6 | Be Persistent | 10 Rules of Warren Buffett to Build Your Wealth
If you get a “NO” from a potential employer who you really want to work for, never take it as a final answer — keep trying until you get a “yes.” When Buffett graduated college, he wanted to work on Wall Street. He offered to work for his mentor Graham, but Graham said, “no,” But Buffett still continued to pitch ideas to Graham. Eventually, Graham hired Buffett. You’ll face hard knocks and tough times in life. You just need to remain persistent and continue to grind through it.
Rule 7 | Reinvest Your Profits | 10 Rules of Warren Buffett to Live By
When Buffett was in high school, he and a friend bought a pinball machine. According to Biography, the pair put it in a barbershop and quickly earned enough to buy more machines and install them in other shops. The friends eventually sold all the machines for a profit of $1,200. If you want your fortune to grow, the best thing you can do is keep reinvesting it in your business. Reinvesting small business profits back into your company is the best way to ensure its longevity.
Rule 8 | Invest in what you understand | 10 Rules of Warren Buffett as Success Lessons
Back in the late 1990s the whole investment world was gravitating towards IT and telecom companies but Buffett chose to stay away. His logic was that technology was too complex to understand and hence he preferred to keep away. Similarly, he kept away from banks and financials during the sub-prime crisis. This focus helped Buffett avoid burning a big hole in his portfolio during two of the biggest meltdowns in the US markets. The moral of the story is to stick to your knitting, even if it is drab and boring.
Rule 9 | Be paranoid about losing money | 10 Rules of Warren Buffett to Grow Your Wealth Fast
Great investors are paranoid about losing money. That does not mean that Buffett has not booked losses. The point is that when you make a loss it is time to seriously introspect what is wrong and avoid these mistakes for the future. It is OK to lose money occasionally in equities as long as the lesson is not lost!
Rule 10 | Read, read and read | 10 Rules of Warren Buffett to Make a Fortune
Buffett is a voracious reader and he recommends that all fund managers and serious investors should devote a good part of their day to reading. That is the only way to understand new trends and get new ideas. Otherwise you tend to stagnate and that is not great news for your exposure to wealth.
Final Takeaways
Buffett pares down his all ideas into simple, memorable sound bites. His philosophy holds up in all economic environments. So focus your efforts on whatever it is that inspires you in 10 Rules of Warren Buffett to Get Rich . And who knows you might just achieve a level of success even Buffett would admire.
For more insights you might like to read : Warren Buffett: Inside the Ultimate Money (https://amzn.to/3FUlsQz)
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