With an estimated fortune of $62 billion, Warren Buffett is the richest man in the entire world. He credits his success to:
1. Reinvest Your Profits: When you first make money, you may be tempted to spend it. Don’t. Instead, reinvest the profits.
2. Be Willing To Be Different: Don’t base your decisions upon what everyone is saying or doing.
3. Never Suck Your Thumb: Gather in advance any information you need to make a decision, and ask a friend or relative to make sure that you stick to a deadline.
4. Spell Out The Deal Before You Start: Your bargaining leverage is always greatest before you begin a job — that’s when you have something to offer that the other party wants.
5. Watch Small Expenses: Warren Buffett invests in businesses run by managers who obsess over the tiniest costs. He once acquired a company whose owner counted the sheets in rolls of 500-sheet toilet paper to see if he was being cheated (he was).
6. Limit What You Borrow: Living on credit cards and loans won’t make you rich. Negotiate with creditors to pay what you can. Then, when you’re debt-free, work on saving some money that you
can use to invest.
7. Be Persistent: With tenacity and ingenuity, you can win against a more established competitor.
8. Know When To Quit: Once, when Warren Buffett was a teen, he went to the racetrack. He bet on a race and lost. To recoup his funds, he bet on another race. He lost again, leaving him with close to nothing. He felt sick — he had squandered nearly a week’s earnings.
9. Assess The Risk: In 1995, the employer of Warren Buffett’s son, Howie, was accused by the FBI of pricefixing. Warren Buffett advised Howie to imagine the worstand- bestcase scenarios if he
stayed with the company. His son quickly realised that the risks of staying far outweighed any potential gains, and he quit the next day. Asking yourself “and then what?” can help you see all of the possible consequences when you’re struggling to make a decision — and can guide you to the smartest choice.
10. Know What Success Really Means: Despite his wealth, Warren Buffett does not measure success by money. In 2006, he pledged to give away almost his entire fortune to charities, primarily 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.”