Recommendations wishing to get rich from investor Warren Buffett
1. Reinvest profits
When you earn the first big money, you are tempted to spend it. Do not do that. Better put them in a business that seems profitable to you. I realized this early, while still in high school. My friend and I bought a used pinball machine and installed it at the hairdresser. We did not spend the money we received, as ordinary teenagers would do in our place, but began to buy other automata. By the age of 26, I already had $ 174,000, which is $ 1.4 million for modern money
2. Be ready to be different
Do not make decisions based on what others say. When I started managing money, having collected $ 100,000 from several investors, they called me an eccentric and predicted failure for me. But 14 years later, I closed the partnership, and it cost more than $ 100 million. For me, the market is just what everyone else is doing. To be above the market, you need to measure yourself according to your own internal scale, judging yourself by your own standards, not public
3. Do not suck your thumb
Collect all information in advance, quickly make a decision and stick to it. Unnecessary sitting and thinking I call “thumb sucking.” When I am offered to enter into a business or invest money, I ask how much it will cost, what I will have with it – and almost immediately I tell my decision
4. Agree on everything ashore
All controversial issues, especially money, must be resolved before the start. I got this bitter lesson before business with slot machines. Grandpa hired me and my friend to clean up the store. We carried heavy boxes for 5 hours, and when we finished, our grandfather gave us 90 cents for two. I was shocked by such injustice
5. There are no small things in business.
I sincerely admired my friend, who thought of painting only that office wall that went onto the road, and thus saved on paint. Learn to save on small things, it will greatly increase your income.
6. Live within your means
Do not go into debt. Life on credit has not made anyone a millionaire. I have never, in my entire life, borrowed money, but always tried to earn money first, and then manage with what I have. My advice to the debtor is to bargain with creditors to pay as much as you can. And when you close the debts, work hard to collect at least a small amount that can be put into action.
7. Be persistent
With perseverance and perseverance with less capital you can achieve more than a better-off opponent. In 1983, I bought the company only because I liked the way its founder, an immigrant from Russia, was doing. From the mistress of a small shop, she turned into a real legend of the industry, opening a network of furniture stores throughout America
8. Get out of the game in time.
As a teenager, I got on the run, put it once and lost. To compensate for the loss, I bet again and again lost. It was a weekly earnings. But I found the strength to leave and never again repeated this error.
9. Evaluate the risks
In 1995, my son Howie’s employer was accused by the FBI of fixing prices. I advised Howie to imagine the worst and best company scenarios. He quickly realized that the risks far outweighed any potential benefits and left the next day. Ask yourself the question “And then what?” – It will help to present all the possible consequences and make the right choice.
10. Find out what is the meaning of success.
Despite my condition, I never measure success in dollars. Having lived up to solid age, I realized that success in life is not measured by money, but by the number of people you love and who love you.