By Athena Joseph
The success of Warren Buffett, an 84-year-old self-made multi-billionaire, can be attributed entirely to his smart and unorthodox investment strategies. With an estimated net worth of $72 Billion, Warren Buffett is one of the most successful, wealthiest businessmen and investors of all time. His company, Berkshire Hathaway, owns and operates some of the largest corporations in the world, including Helzberg Diamonds, FlightSafety International, and NetJets.
The Berkshire Hathaway CEO, famous for his long-term investing strategy and assessments on market risk, has a lot to teach about money. He is noted for his adherence to value investing, and his personal frugality despite his immense wealth. Despite all his success, Warren Buffett still manages to remain humble and approachable.
Here are 5 Key lessons from Warren Buffett:
- Need for a strategy
For more than 50 years, Buffet has always had a strategy for his investment. His strategy is based on the need to buy companies that are well managed and at a cheap price. He says that it is good you start early, make all the mistakes early and correct yourself early. Tomorrow is not the best time, Now is.
- Do work that you love
Warren once said,“In the world of business, the people who are most successful are those who are doing what they love”. Success comes when you do what you love. Looking back at your life when it’s all said and done, will you tell yourself with great pride that you made the right career decision? Doing what you love is a major reason for your long-term happiness. And knowing what you love should be your first step toward self-discovery.
- Thrive to be different
“Be a sunflower in a field of roses”. Always try out your own method/idea of doing things. Do not always imitate others. Do not make business decisions based on what every other person is saying or doing.
- Understand the risk coming forward
Calculating risk is an integral part of the investment process. He said,”we don’t have any formula that evaluates risk, but we certainly make our own calculation of risk versus reward in every transaction we do. And sometimes we’re wrong, and we’re going to be wrong sometimes in the future. You can’t make a lot of decisions in this business without being wrong”.
- Save first, spend second
“Save first and then spend what’s left on your bills. If you’ve calculated correctly in terms of how much income and expenses you have and the amount you should be able to save, things will work out”. Don’t save what is left after spending; spend what is left after saving. Every time you spend money on something that doesn’t give you a return, you’re sacrificing your tomorrow.
What’s your favorite takeaway from this post? Let me know in the comments below.