Warren Buffett: The Complete Success Life Story of Warren Buffett.
Warren Buffett: Who can't be written about.
There has been a long-standing discussion about who will be the successor of the late billionaire Warren Buffett at the US multinational conglomerate Berkshire Hathaway. But the US business magnate is yet to announce a successor. He has not revealed any plans to retire. However, the 89-year-old Buffett recently told the company's shareholders that the Berkshire Hathaway empire has completed preparations to send him and his long-time partner Charlie Munger, 96.
Born in Omaha, Nebraska, the ``Oracle of Omaha'' Buffett is as well known for his extraordinary investments as he is for his simple and humble personality. Buffett's philanthropy is also well known. In his annual letter to shareholders on Saturday, Buffett said, "Charlie and I entered the 'dead end' long ago." It's not exactly great news for us though. But Berkshire shareholders have nothing to worry about. Because your company is 100% ready for our departure.
One of the richest people in the world has given several reasons for his optimism. "We have a team of skilled and dedicated top managers, for whom running Berkshire is not just a high-paying or prestigious job, but much more," he said. In addition, he added, the company's assets are also engaged in an "extremely diversified" business.
At the annual meeting of shareholders in May last year, Buffett gave a glimpse of who his successor might be. At that time, he said, Gregory Able and Ajit Jain may join him and Munger on stage in the near future to answer questions. Note that in 2018, 57-year-old Able and 67-year-old Jain were promoted to the board of directors.
"We have every reason to want to ensure Berkshire's prosperity in the years after Charlie and I leave," Buffett said in a letter to shareholders. Munger's company holdings in Berkshire are larger than any other family investment. Besides, fully 99 percent of my net worth is invested in Berkshire shares.
Note that Buffett never sold Berkshire shares. He also said that there is no plan to sell.
He is one of the world's best investors and entrepreneurs. He stubbornly bought the loss-making Berkshire Hathaway and made it one of the top 10 companies in the world.
Warren Buffett's company has the highest price per share in world history. Each class 'A' share is worth more than 3 lakh dollars!
Dairy Queen, United Airlines, US Airlines, Coca-Cola (9.4% share), Bank of America (6.8%), Apple (5.22%), American Express (17.6%) IBM (8.1 million Shares) – He and his company have stakes in many such companies.
In 2013, his daily income was 37 million or 37 million dollars. Currently, his net worth is 90 billion US dollars. This wealth is almost double that of world famous entrepreneurs like Jack Ma, Elon Musk. The question may arise, how did an entrepreneur get so much success? How difficult was this path?
It's hard to find an investor who doesn't have an interest in world-renowned investment guru Warren Buffett. There is no shortage of interest in what he does when. There is no idea how many lakhs-thousands of searches are made on the internet every day from different parts of the world to know his investment strategy. But do you know which books changed Warren Buffett's life?
Buffett is a person who does not forget to read books even in thousands of busy days. Try to keep your eyes on the pages of some book most of the day. I want to read at least a few hundred pages of books in spite of all the busyness. Warren Buffett sought refuge in these books written about the experiences of different authors in business good or bad.
Buffett has mentioned the 8 books that changed his life in various interviews. Which is published in Business Insider.
- Benjamin Graham's 'The Intelligent Investor'
- Benjamin Graham's 'Security Analysis',
- 'Common Stocks and Uncommon Profits' by Philip Fisher,
- 'Stress Test: Reflections on the Financial Crisis' by former US Treasury Secretary Tim Geithner,
- Jack Welch's Jack: Straight from the Gut,
- 'The Outsider' by William Thorndike,
- John Bogle's 'The Clash of the Cultures'
John Brookes' 'Business Adventurer's: Twelve Classic Tales from the World of Wall Street'.
Among them, Buffett read "The Intelligent Investor" at the age of 19. Which taught him how to invest. And Graham's second book explores the investment market further. He said about 'Stress Test: Reflections on Financial Crisis' written by former US Revenue Minister Tim Geithner and 'Jack: Straight from the Gut' by Jack Welch, these two books are essential reading for all traders. This book will tell you how to turn an organization around in the worst of times. In a 2012 letter to shareholders, Buffett praised The Outsider. John Bogle's book 'The Clash of the Cultures' is also said to read.
Childhood and Education: In 1930, Warren Buffett was born in Omaha, Nebraska, America, to Stockbroker (later Congressman) Howard Buffett and Leila Buffett, their only son. Warren was the second of 3 siblings.
Warren Buffett's first school was Rose Elementary School in Omaha. When Warren Buffett was 12 years old, his father Howard was elected a congressman from Nebraska. Congressman is a post like a member of Parliament of our country. ICE was passed mainly by their votes. Howard Buffett was elected to this position 4 times in a row.
After being elected first, Howard moved with his family to Washington, D.C., and Warren attended Alice Dale Junior High School, where he completed his elementary education. Later in 1947, he graduated from Woodrow Wilson High School. Under his picture in the school yearbook was written "Boy likes numbers, future will be a stockbroker".
While in school, Buffett and a friend bought a spinball machine for $25 and set it up next to a barbershop. Many people used to spend time playing this game in exchange of money. Later they bought two more machines from the profit of that machine. When the business boomed, they sold the entire business for $1,200. Investing only $75 $1,200 - plus business profits! Warren Buffett was the head of such a business from a young age.
Apart from the spinball machine business, Warren tried to earn money by selling chewing gum, selling Coca-Cola bottles, door-to-door newspaper delivery, etc. during his school days. He also happened to buy chips from his grandfather's shop and walk some distance and sell them at a profit of 5 cents in his childhood.
This penchant for making money started at an early age when he read a book at the Omaha Public Library at the age of 7. The book is called “One Thousand Ways to Make $1000” – since then the entrepreneurial inclination has been in his head.
At school he was called a math genius because he could calculate huge numbers by hand – which others couldn't even think about without a calculator. At the age of 10, he visited the New York Stock Exchange. At the age of 11 bought 3 shares of "Cities Service" for himself and 3 for his sister Doris. and gain something.
At the age of 15, Warren Buffett's monthly income was about $200. The time was 1945. A few thousand dollars at that time would have passed the year. While in high school, Buffett invested his own $1,200 in his father's business and bought a 40-acre farm in partnership with his father!
After finishing high school, Buffett decided to stop studying. Concentrate fully on business. But their father prevented it, so in 1947, Buffett entered the University of Pennsylvania. After two years there, he transferred to the University of Nebraska, where he graduated with a B.S. in Business Administration at the age of 19.
After unsuccessfully trying to enter Harvard Business School, he enrolled at Columbia Business School under Columbia University. He graduated from there in 1951 with a master's degree in economics. Before graduating from college, he had $9,800 in savings. As of today it is 101000 dollars. About 85 lakhs in Bangla Taka!
- Business and Career:
Before Berkshire Hathaway: After college, he joined Buffett-Falk & Co. from 1951 to 1954. He works as an investment salesman. From 1954 to 1956 Graham-Newman Corp. He works as a security analyst. From 1956 to 1969 he was Buffett Partnership, Ltd. It works as a general partner. He eventually became the chairman and CEO of Berkshire Hathaway from 1970.
In April 1952, Buffett learned that his mentor Benjamin Graham was one of the board of directors of GEICO Insurance. Hearing that, he took the train to Washington one Saturday and went to Geico's headquarters and knocked on the door until it was opened. He was first met by a cleaning worker there, and had the opportunity to meet the company's vice president, Lorimer Davison.
This man later became a close friend and encourager of Buffett. Davison later said that after 15 minutes of talking to Buffett, he realized the guy was a "different kind of extraordinary" person.
Buffett wanted to work on Wall Street, but both his father, Howard, and his mentor, Ben Graham, persuaded him to do so. He even promised to work for Graham for free. But Graham still refused him.
Buffett then returned to his home in Omaha, and enrolled in Dale Carnegie's public speaking course in addition to working as a stockbroker. Using the confidence he gained from his public speaking courses and his business knowledge, he began teaching a night class on "Investment Principles" at the University of Nebraska. Interestingly, most of his students were more than twice his age!
During this time he tried business by buying a gas station, but his venture failed miserably.
In 1954, one of Buffett's big dreams came true. Benjamin Graham himself offered him a job in a business. His annual salary is estimated to be $12,000 (currently around $1,09,000). This job gave him the opportunity to work and learn from the Guru very closely. Benjamin Graham was a very strict boss, but from him Buffett got many of the best lessons of his life. Graham retired in 1956. Buffett also left his position, and started his own firm, Buffett Partnerships Ltd., with $174,000 (currently about 1.57 million) of his savings.
By 1957, Buffett had become a partner in 3 businesses. By 1959 his company had grown to 6 partnerships, and by the following year it had grown to 7 partnerships. By 1962 he had become a millionaire.
Berkshire Hathaway Chapter: In 1839 Oliver Chase founded a textile. The name was 'Valley Falls Company'. In 1929, Valley Falls merged with the Berkshire Cotton Manufacturing Company, founded in 1839. The two companies came together under the name “Berkshire Fine Spinning Associates”.
In 1955, Berkshire Fine Spinning Associates merged with the Hathaway Manufacturing Company, founded in 1888.
At first Hathaway Manufacturing was a very profitable textile company. But since the end of the First World War in 1918, the poor condition of the entire textile industry began to affect it. As a result, at one point it was forced to merge with Berkshire Spinning Associates. The new company was named “Berkshire Hathaway”.
After the founding of Berkshire Hathaway in 1955, 15 textile factories employed 12,000 workers. And about $120 million a year in profits. But from the beginning of the 60s, 7 out of 15 mills were closed. Along with this, a large number of workers were also laid off. – This is when investing genius Warren Buffett entered the scene.
In 1962, Buffett began buying Berkshire Hathaway stock. Because he saw the company close one by one, the share price fell. He observed that America's textile business was collapsing, and the financial condition of the companies involved would continue to deteriorate. But such old traditional company names are also many things.
In this way, buying a significant amount of shares of the company goes to the hands of Buffett. And the owner of the company is shaken. Because, having so many shares in one's hands can be a cause of danger. In 1964, company chairman Seabury Stanton invited Buffett to coffee, and made a verbal offer to buy all of Buffett's shares for $11 1⁄2 per share.
Buffett agreed to the offer as it was profitable. But at the time of signing the tender on paper, Buffett saw that instead of the agreed price of 11 1⁄2 per share, the price was set at 11 3⁄8. Buffett was later told that he thought it was a hoax. Enraged, he vowed not to sell the shares, but instead to buy more shares to control Berkshire Hathaway, and to force Stanton out of his own company.
He started buying more shares anonymously, and eventually accumulated so many shares that he became the company's largest shareholder. and promised to oust Stanton from the company and install one of his own nominees as chairman.
After stubbornly doing the job, Buffett realizes his mistake. He actually bought a failed company. Although He turned the company into one of the most successful companies in history, but according to him, if he had not made this mistake and invested directly in insurance and other businesses, he would have made hundreds of times more in life. That means he had a chance to become the richest man ever!
However, early on, Buffett ran Berkshire's core business, textiles. But as there was no improvement, around 1967 he started focusing on his interest business insurance. Besides, he started investing in other fields as well. In 1979, Berkshire Hathaway started the year at $775 per share, and ended at $1,310. As a result, Buffett's total personal wealth stands at 620 million US dollars.
In 1988, Buffett began buying shares in the Coca-Cola Company, and gradually acquired $1.02 billion worth of shares, about 7% of the company.
In this way, Berkshire Hathaway, i.e. Warren Buffett's hand started expanding in all directions from insurance to airlines, railways, coal, food, drinks. This includes investing in several first-class companies in America and the world. Berkshire Hathaway's last textile mill closed in 1985. The current value of the company is close to 300 billion US dollars. In addition, the amount of cash deposited in the company's account is 116 billion US dollars!
Since 1965, Warren Buffett has published a letter to shareholders every year. On average, letters are about 30 pages long. It is said that through this letter there is an indication of how the company will work in the next year, and what its status will be. In 2014, a book of 50 letters was published to mark the 50th anniversary of Buffett's ownership of Berkshire Hathaway. The book is an invaluable resource for young entrepreneurs, especially aspiring investors.
The world knows him as 'Investment Guru'. He has become a living legend in the business. He is also very popular with common people; A source of inspiration. Everyone knows Warren Buffett by name.
This American businessman who is very popular in China can be seen in Coca-Cola. From now on, Warren Buffett will be seen in cherry cans in the Chinese market. In doing so, Coca-Cola will honor the legendary reputation of its largest investor.
Coca-Cola recently announced that the American business magnate's favorite flavor of Coca-Cola, Cherry Coke, will be available in the Chinese market. To honor him, these Coke bottles feature a cartoon portrait of Buffett.
Buffett's investment firm is Berkshire Hathaway. He is the largest shareholder of Coca-Cola. His 9.3 percent stake is worth about $17 billion.
Wherever this 89-year-old businessman goes, fans and journalists rush to take his picture. Many times he was seen drinking Cherry Coke in these films. Those close to him know that it is his favorite flavor of Coca-Cola. According to the company's chief executive Muhtar Kent, Buffett is Coke's biggest fan.
Mao's image is ubiquitous in Communist China. In any case, his image is like a logo. There, Buffett's image at Coca-Cola made him a celebrity to thousands of businessmen in China. Buffett is an inspiration to many businessmen of that country.
Buffett invested in Coca-Cola in 1985. Cherry Coke is her favorite. In a letter last February as well, he told other shareholders that he consumes enough Coca-Cola and candy to collect the required calories for the week.
This former student of Columbia Business School, USA has always given various advices to students and young entrepreneurs. The suggestions given by him are highlighted
Be patient in bad times
Warren Buffett has always advised patience in bad times. He must have taken this lesson from his own life. He had to face economic recession many times in his life. In 1993, he bought a company named Dexter Shoes for about 43 million US dollars. In 2007, the company lost $3.5 billion, but Warren Buffett did not lose patience.
Warren said, 'Two formulas for success. First rule: Never give up. The second formula: The first formula can never be forgotten.
- Keep the target
Warren Buffett believes that whatever you do should be done with full attention. Don't lose your business acumen in the excitement of business. Always be alert. He said, 'Don't invest in a business you don't understand.'
- Invest in yourself
Your success depends on your personal skills. So Warren Buffett said, 'Invest in your skills first. As your skills increase, your business will be more creative.' He always said that giving yourself time is very important. His statement, 'Sometimes I sit quietly and think. Many may say it is pointless. But I like to think about business and investment problems.
- Choose the right company
"Spend time with people who are smarter than you. Treat your associates better than you and let them influence you.' This is Warren Buffett's motto in business. He thinks that people's honesty is a great quality. It is not right to expect this quality in everyone. Therefore, keep around you only those people who are honest in business. Someone you can trust. Warren Buffett has long done business with people with whom he has a good understanding.
- Must read a lot
As a student, this billionaire businessman has quite a reputation. He spends 80% of his free time reading books. Business Adventures, The Essays of Warren Buffett and The Intelligent Investor—he recommends reading these books for young entrepreneurs. In an interview given to HBO, he said that he still spends five to six hours a day reading books. He said, 'Read at least 500 pages every day. Knowledge is like “compound interest”. The more you read, the more it will increase.
- Work for society
As you get from the society, it is also your responsibility to work for the society. Warren Buffett said, "One who planted a tree many years ago gets the shade of that tree today." So don't forget the contribution of your predecessor. If you are among the lucky 1 percent, it is your responsibility to do something for the other 99 percent.
- Think about the past and the future
Warren Buffett believes that both the past and the future are important in business. He thinks that even if we cannot see the future clearly, we can see our past clearly in business. That will help us make future decisions. Again he said, "If past history was the most important thing in this game of making money, librarians would be the richest people in the world."
- Who is your 'hero'?
Who you follow matters a lot. Who do you want to be like? Answer this question carefully. Warren Buffett said, 'Tell me, who is a "hero" in your eyes. I will tell, what is your future.' That is, who you consider ideal, that will determine your future.
- Have faith
"My father has faith in me. I also believe in myself. This is how Warren Buffett wrote in the introduction to the book The Great Minds of Investing. He claims that he always has confidence in him Ill He never thought of failure. He did what he loved with the conviction to succeed. According to him, 'how much money is being earned or how much profit is being made, what is more important than this calculation is whether the belief in oneself is intact or not.'
- Learn from mistakes
Warren Buffett is not 100% successful in life. He made a mistake. Even in business life he has made big mistakes. But he learned from his mistakes. Warren Buffett advises university students to remember life's mistakes and learn from them. He thinks that his children should also be informed about the mistakes. May they not make the same mistake.
According to Warren Buffett, there are four things that separate dreamers from successful people
Buffett always values common sense. While this isn't rocket science, many of us aren't in the habit of following it consistently. And this habit will not develop, if we do not believe in the principle that the effect of discipline really works.
Warren Buffett is known as the world's most successful stock market trader. Ever knowing or hearing about any of his decisions; Head said to Chul - why it did not come to my mind?
All those who inquire about him should have this experience. He has a legendary reputation outside the investment world for his hyper-realistic wisdom. Most Buffett fans would agree that we would be far ahead of where we are today if we had made such wise decisions in our lives.
Buffett's discipline is very straightforward. To accept it, one has to jump into the implementation of the decisions discussed below with a positive attitude and determination.
- Be careful in choosing friends:
One of Buffett's suggestions for our common sense came recently in a 90th birthday message Buffett received from friend Bill Gates. "I learned a lot from Warren," Gates said in his congratulatory message. But, the most important of them is; Knowing how friendship should be from him. Many years ago, Warren told college students, "Whoever you associate with, you follow their path in life." So make a habit of always hanging out with people who are better than you. As friends live, their reflection will be seen in you. So, make some close and good-natured friends that you can keep with you for life. But, apart from matching them, aim to be inspired by their lifestyle.''
- Go to bed a little smarter every day:
Buffett has achieved so much in his long life that many influential people in the world turn to him for advice. Of course, Buffett thinks that everyone can be like him. However, this requires following his Buffett theory. Of course, it is not something complicated, but a deliberate effort to acquire knowledge. Spend your day learning or knowing something new. As a result, every day you go to sleep smarter than before. Buffett said that the investment business has a lot in common with the matter. He said, "Just as the basket of experience and knowledge gradually accumulates in the investment business, personal life is no different." Accumulated knowledge is like a good investment, with interest that will one day return to you.''
What Buffett is famous for doing is to educate; reading books He still spends a lot of time reading books in between his busy life. He even spends 80 percent of the day reading books.
Whether it is possible for you to spend so much time reading books is not a relevant discussion here. The key is learning; The Buffett theory will teach you to move forward a little each day and knowledge will increase your ability to make daily decisions.
- Improve communication skills:
According to Buffett, the greatest investment a person can make is self-development. What can be achieved only by improving oneself in personal and professional life. That is, build yourself up; Be it family life or business will be by your side everywhere.
Buffett acquired the quality of understanding and communicating well with others from a young age. According to him; It strengthens our self-esteem, increases our self-worth to others. "Your communication skills will increase by at least 50% from the present, if you practice regularly to improve your communication skills in written and verbal ways," he added.
- Learn to say 'no':
Buffett achieved a great quality early in life. Very generally, he builds around himself an impenetrable wall of technique and practice. That's why this quote from Buffett can be the biggest learning point in our life;
"The difference between the person who claims to be successful and the person who is actually successful is that; In fact, successful people say no to almost everything.''
We are traders or officials; There are few things we have to accept to keep life hassle free. Keeping away from everything else is the act of consideration. That's why you have to say 'no' to unnecessary things, luxuries or laziness. Avoiding numerous contexts in daily life to move towards achieving your main goal, which has no alternative. Learn to say 'yes' only to things that are good for you or others.
- Warren Buffett's 10 Tips to Get Rich
Warren Buffett's biography is chronicled in an article by author Ellis Schroder. This article titled "Ten Ways to Get Rich - Warren Buffett's Secrets That Can Work for You" was published in Parade Magazine in 2008.
- Reinvest the profit
When you first earn money, you may be tempted to spend it, but don't. Reinvest it instead of spending it. Buffett learned this early in his life. While still in high school, Buffett and his friend Paul bought a pinball machine to install in a barber shop. Then at different times, with that income, they bought eight machines to install in different shops. When the two friends sold their venture, Buffett proceeded to buy stock and start another small business on the side.
Warren knew the power of compound interest. If a person has 1000 rupees in the bank and earns 10% annual profit from it, then at the end of the year he will get 100 taka in cash. If he spends this 100 rupees, it goes forever and the person will continue to earn only 100 rupees every year. However, if the money is reinvested, the person will get a dividend of Rs 1100 instead of Rs 1000 in the next year. Accordingly, at the end of the year, you will get 110 rupees instead of 100 rupees. This difference grows exponentially over time. If you continue to reinvest your profits, your profit per year in 10 years will be Rs.235.
This is why Berkshire Hathaway does not pay dividends. Warren Buffett knows he can reinvest that money back into Berkshire's business or acquire another business. In this case an investor can earn a higher rate of return than if they could reinvest their dividends.
- Try to be a little different from everyone else
Don't base your decision on what everyone else is doing. When Buffett started the business in 1956, raising $100,000 from a handful of investors, many called him an 'oddball'. He worked in Omaha then, not on Wall Street. He declined to say where the partners invested the money. Many predicted Buffett's failure. But 14 years later, when he counted his stake, it was a company worth more than $100 million.
Ben Graham, the father of value investing, used to say that other people agree with you but you are not right - you are only right if your data and analysis are right. You must think independently as an investor, and that means that you must have individuality at times. Don't follow people blindly. According to Ben Graham, "A stock investor is not proven right or wrong based on people's consensus or disagreement. One is right based on the accuracy of his data and analysis".
- Don't sit idle
Gather any information you need to make a decision in advance and discuss the matter with a friend or relative to ensure deadlines are met. Buffett prided himself on his ability to make quick decisions and act accordingly. He called any unnecessary sitting and thinking "finger-sucking".
When Warren Buffett sets his mind on something, he examines it in every possible way. Thunko doesn't limit himself to just testing the temperature of the water with his toe.
In the investment world, people invest a small amount to track specific stocks, but Buffett's position is the opposite. He believes that when you are given an opportunity, you must take it with all you have. Which is very rare in the investment world. The point is; You can't waste time - you have to get to work at any cost.
- Explain the contract before starting
Your bargaining chip is most important before starting any work – when you have something the other party wants. Buffett learned this lesson the hard way at an early age when his grandfather Ernest hired him and a friend to dig out the family grocery store after a snowstorm. They worked for about 5 hours and shoveled until they could straighten their frozen arms. Later, his grandfather shared less than 90 cents between the two men.
Warren Buffett does not compromise. He talks directly about the price he's willing to pay to acquire a company, doesn't go on and on about trying to "make a difference." Although his deals are of the "take it or leave it" type, he always offers reasonably fair prices.
- Also keep in mind the very low cost
Buffett is comfortable investing in businesses run by managers who account for even the smallest costs. He once owned a company whose owner counted toilet paper to see if he was being cheated. It is said that one of his friends praised him for painting the only road-facing wall in the office building.
There is an interesting anecdote about Warren Buffett and his good friend Bill Gates. When they were visiting China together in 2010. When Bill Gates went to pay the bill after lunch, Buffett stopped him and pulled out a stack of coupons he had brought from Omaha.
Don't waste money! There is a big difference between being cheap or stingy and frugal.
- Borrow in limited amounts
Warren Buffett is a risk-averse person. He often says that he never wants to be in a position where Berkshire Hathaway needs someone else's financial support. Indeed, Berkshire's financial stability and cash reserves allow Warren Buffett to be extremely opportunistic during market downturns. As in 2008, Berkshire gave 'life saving loans' on very easy terms to institutions like Harley Davidson, Goldman Sachs.
- Always be persistent
Can win against established competitors with tenacity and ingenuity. Nebraska Furniture Mart founder Rose Blumkin bought the company in 1983 because he liked the way he did business. The company's founder, a Russian gentleman, was uncompromising. As a result, he went from a pawn shop to the owner of the largest furniture store in North America.
Warren Buffett's trusted aide Charlie Munger has given a good definition of philosophy. "In business it means you stick with something until it's done," he says. You will face hard knocks and difficult times in life. You just have to persevere and keep going through it.
- Know when to leave
Buffett once visited a racetrack as a teenager. He lost a bet on a race. To recover that money, he bet on another race and he lost again. He felt sick because he lost almost a week's earnings. Buffett never repeat that mistake.
There is no need to bring something back exactly as it was lost. If you realize that your core investment process for a particular stock is broken, it's time to sell it and get out of it. Next find new investment opportunities and invest money there.
- Risk assessment
In 1995, an employee of Buffett's son was charged by the FBI with 'price fixing'. Buffett advises him to think about the profit and loss of the company if his son is in the company. His son quickly realized that staying away from company operations was the most profitable of the possible risks. He resigned the next day.
Warren Buffett judges risk differently than others in the investment world. On Wall Street and in MBA classrooms, risk is often described as synonymous with volatility. Buffett disagrees. Buffett says that risk is the possibility of losing your initial investment.
- Know what success is
Despite his wealth, Buffett doesn't measure success in dollars. In 2006, he pledged almost his entire fortune to charity, primarily the Bill and Melinda Gates Foundation. He is adamant about not funding a monument to himself—no building or hall named after Warren Buffett.
"When you get to my age, you measure your success in life by how many people actually love you. That's the ultimate result of how you live your life."
The 6 principles of success that Warren Buffett taught on his 89th birthday
What advice did this tycoon give to young people for success in life?
Billionaire Warren Buffett turned ninety-nine on August 30, 2021. He is also celebrating his 13th wedding anniversary with wife Astrid. On this occasion, Buffett gave half a dozen advices for young people from his own experience. Let's find out the tips.
- Marry the right man
Buffett made a lot of money by investing wisely. But if you ask him, what was the most important decision of his life, he will not mention money in his answer. Buffett said, "The most important decision in life is the person you choose to marry."
In a conversation with Bill Gates in 2017, he said that people want to build relationships with people who are similar to them. And the most important thing is to choose a life partner.
Buffett has been giving this advice for years. In 2009, at Berkshire Hathaway's annual meeting, he said, 'Marry the right person. ...It will make a big difference in your life.'
- Invest in yourself
Buffett told the editor-in-chief of Yahoo Finance this year, "The best investment is in yourself."
The billionaire advises to first learn how to communicate well both in writing and in person. In a video posted on Facebook in 2018, he said, mastering this skill increases anyone's value by at least 50 percent.
Buffett then advised to take care of body and mind at a young age. He said, 'In life you will get only one body and mind. And after age 50 you can't start taking care of these two things. If you don't take care, your body will get rusty soon.'
- Build relationships with 'high-grade people'
In an interview in 2015, Buffett said, "Who we associate with is important." He said, 'One of the best things you can do in life is to associate with people who are better than you.'
In Buffett's words, these people are 'high-grade people'. When we are with people who are better than us, we start to think and act like them.
This veteran billionaire said, if we start hanging out with people who are worse than us, then our behavior will soon become like them. Working for those whom I respect
Buffett said in an interview, 'Try to work for the person you respect the most. You may not be doing the same job 10 years from now, but you'll get a variety of job opportunities along the way.'
While salary is important, no job should be done just for the money, according to Buffett.
Buffett once accepted an offer to work with his mentor and hero, Benjamin Graham. He never once asked about the salary while taking the job. He got to know his salary only after receiving his pay check at the end of the month.
- Don't listen to people
Investing can be an emotional place, but we can't get an idea of what investing is like just by flipping through the news pages. Moreover, no one can say anything for sure about when the condition of the money markets will be. The best strategy is to stay calm even when the market is booming.
In 2016, Buffett said, 'Honestly, I don't listen to what economists say. [Economists] look at history, they don't make a lot of money selling stocks. But those who sell stocks, they listen to them. I don't like this very much.'
- Success cannot be measured in money
Buffett is one of the world's richest men, but he never measures success by money. Holding on to loved ones is the most important thing to him.
In a speech in 2008, Buffett said, 'One of the greatest blessings in life is receiving unconditional love.' He said, 'The most incredible thing about love is that you can't get out of it. If you want to remove love from life, you will get involved in double love. But if you want to hold on by force, love is lost. It's a wonderful thing—those who push love away with carelessness get it back tenfold.'
- The 10 mistakes you should never make to succeed.
To be successful in life, you need to know how to track your money and use it properly. Successful people in life do this unique task very efficiently from the beginning of life. And this skill will help you to live well in the coming days on earth.
Spend less than you earn: Spending less than you earn is an important financial skill. The world's richest people have always kept this aspect in mind and continue to do so. As an example, we can mention the name of Sir John Templeton, a legend of the investment world, who saved 50% of his earnings even after establishing himself as a billionaire. That is why you are not being asked to save 50%. You can also achieve financial success by saving 10%-15% of your income.
2. They don't stop at the fixed price, they give importance to the evaluation of things: Where and how we spend in our personal life are two things about them, it can be your investment, the cost of eating in a good restaurant or shopping. Successful people also pay attention to this. When it comes to investment, they consider the future of the investment sector. For example, they will spend $200 or more on an expensive business suit, not cheap shoes. Because, with little care, expensive pair of shoes will last relatively long.
3. They don't spend money on bank accounts, they know how to handle their own banking: According to CNN, Americans spend over $15,000 on credit cards. Successful people also keep an eye on this. They keep track of how much they spend on ATMs and other things.
4. After any big change in life, they don't forget to compare the savings and expenses: Are you married recently? Does your wife like you? These are also some things that successful people can adapt to success. When it comes to major expenses in your life, it is imperative to calculate the total expenses after financial transactions. At least once a year sit down by yourself or with the help of an expert to plan your life and finances which will help you to be at the peak of success in life.
5. They are not limited to a fixed income and look for ways to increase their income: Some people want to stay within a limited income. But successful people always try to increase their income. For example, they take various trainings to improve their skills and even apply new ideas to increase the production of their company.
6. They never neglect financial accounts: To be financially successful, you must possess certain qualities. One of them is keeping track of financial accounts. Successful people spend at least 30-60 minutes a month on it. And whenever they find any mistake or deficiency, they take immediate action.
7. They never take stupid risks with money: According to Warren Buffet, “Rule number one is never lose money.” Every investment involves some risk. And that's why successful people adopt two effective strategies to avoid risk. They value any insurance (such as home, car or life insurance) to avoid risk. They also give great importance to the allocation of resources.
8. They keep their intellectual limitations in mind when it comes to money: “The world is a big and complicated place” - successful people know this and understand it very well. So when it comes to money, there is a lot left to know. That's why successful people like Warren Buffet know their limitations and attach importance to their abilities.
9. They never impose their responsibility on others: Successful people may often take advice from experts, but they never neglect their responsibilities. For example the importance of a 'tax accountant' in financial planning can be easily guessed. And that's why successful people take time to question experts and value their advice.
10. They never let their spending go beyond their life-based needs and capabilities: Achieving financial success is an aspirational goal for all of us. Economic prosperity can ensure a better standard of living that includes advanced technology, health care and a peaceful retirement. That is why successful people understand very well the importance of financial success for a prosperous life. For example, if you prioritize your health over other things, then you are taking a low-quality plan.
- Personal Life:
In 1952, Warren Buffett married a woman named Susan Thompson. Their first child, Susan Ellis Buffett, was born the following year. In 1954, the second child Howard Graham Buffett was born. Howard Graham was named after Warren's father Howard and mentor Benjamin Graham. After 4 years in 1958, Susan and Warren Buffett's 3rd child Peter Andrew Buffett was born.
After the death of Susan Buffett in 2004, Warren married his longtime friend Astrid Minck in 2006. Astrid was 60 at the time of the wedding and Buffett was celebrating his 76th birthday as well. Astrid, Warren and Susan had such a close relationship that for a long time at Christmas the three of them signed Christmas cards together to send friends and relatives!
- Cars, Houses, Hobbies:
Despite being one of the world's richest men, Warren Buffett lives a remarkably simple life. While Hollywood's rich multi-millionaire stars are busy flaunting their look-alike homes, Warren Buffett lives in the house he bought in 1958 for $31,500. Currently, the price of this house is less than 1 million dollars! In the words of the world's best investor, “This is the 3rd best investment of my life(!)”
Located in Omaha, Nebraska, this 6,570 square foot home has 5 bedrooms and is nestled in a tranquil natural setting. A BBC journalist once asked him, "Why don't you buy a more expensive house?" The veteran billionaire replied, “I am happy here. If I find more peace elsewhere, I will go there”.
Buffett has to be called 'stingy' when it comes to cars. While millionaires are busy flaunting luxury cars like Mercedes, Lamborghinis, etc., Buffett is content with driving a Cadillac XTS with a market value of $45,000. He bought this car in 2014 on the insistence of his daughter. Earlier he used to ride in Cadillac DTS. As his daughter did not like this car, he changed the model. But the price of the car did not cross 50000. He uses cars for necessity, not for display of wealth. In an interview with Forbes magazine, Buffett once said, “I don't drive more than 3,500 miles a year. So it takes me a while to buy a new car.”
In fact, big billionaires or businessmen do not work to buy happiness with money, they work from passion. They find happiness in work, money is an extra income. Buffett's simple lifestyle is proof of that. It will become clear to you when you hear about his philanthropic work.
One of Buffett's hobbies is music. He is well versed in the ukulele as well as the small guitar. He also sings songs. He occasionally plays the ukulele and sings at his company or family events. There is an interesting history behind learning this musical instrument, which you will get to know in the next part of this article.
- Service work:
In 2006, Warren Buffett announced that he would donate 83% of his wealth to philanthropy. According to his current wealth, which is more than 80 billion dollars! In June of the same year, he donated 10 million 'Class-B' shares of Berkshire Hathaway owned by him to the 'Bill & Melinda Gates Foundation', a charity established by Bill Gates and his wife. In dollar terms it was 30.7 billion dollars. This is the largest donation in the history of the world!
He also donated large sums of money to his daughter Susan Alice's charity, and to the charities of his sons Graham and Peter.
- Some interesting facts from Warren Buffett's life story:
# Warren Buffett and his wife Susan Buffett's grandfather knew each other. Susan's grandfather even ran an election campaign for Warren's grandfather. However, that campaign failed.
# Before meeting Susan, in 1949, Buffett fell in love with a young woman named Betty Gallagher. Betty was in love with a ukulele player. Seeing this, Warren also learned to play the ukulele. But Betty still disappointed him. But then when he gets to know Susan, it turns out that Susan is also a fan of the ukulele. The ukulele played a significant role in Susan's marriage! Buffett still occasionally plays the instrument at family and corporate events.
# During a regular checkup in April 2012, he was diagnosed with bladder cancer. However, within two months he was cured.
# Despite being such a billionaire, he never spends more than $3.17 on breakfast.
# Berkshire Hathaway tried to change her name several times, but she didn't change it because it reminded her to learn from her mistakes.
# In 1967, Berkshire Hathaway paid dividends to their shareholders only once. Dividends were never paid to shareholders thereafter.
# Every year Berkshire Hathaway's annual shareholder conference is held at the Country Links Center in Omaha. About 20000 people gathered at that meeting! It is considered one of the two largest annual events held in Omaha. The other is the “College World Series of Baseball”. Any shareholder can ask Buffett questions directly at this conference or meeting.
# A movie was made in 2004 to show shareholders of Berkshire Hathaway. Where Arnold Schwarzenegger comes from the future to stop Warren Buffett in the Terminator movie style. Warren Buffett himself is seen in a scene with Arnold in the movie. The film is shown every year at the beginning of Berkshire Hathaway's annual shareholder conference.
# Before marrying Susan, Buffett's father-in-law called Buffett aside and said, “You're going to fail. The Democrats will never let your plan succeed." You must be thinking, what would the father-in-law say if he were alive now!
# Almost every year, Warren Buffett calls an auction to have lunch with him via eBay to raise funds for charity. Budding entrepreneurs don't want to miss this opportunity to learn from him. This auction once bid up to three and a half million dollars!
# He has never tweeted in his life. Warren Buffett's official Twitter account has 1.25 million followers, but there are only 9 posts. In an interview given to his own media CNBC, he said that those 9 tweets were not his own. The friend who opened his account made these tweets!
# Warren Buffett spends 80% of his waking hours studying! When asked about the secret of his success, he pointed to the pile of books beside him and said, “I read 500 pages a day!”
# Buffett has a total of 20 suits. He did not buy one of these with his own money! Once during a trip to China, two men suddenly appeared in the hotel lobby and started taking her measurements, and handed her a catalog saying "Madam Li wants to give you a suit, choose from here". Buffett chose two suits instead of one. Later the designer met Madame Lee and developed a business relationship with her. Lee then gifted 18 more suits to Buffett. Then some other big businessmen like Bill Gates took a suit from Lee!
# Even in 2013, Buffett used a Nokia folding set! In an interview given to CNN, he said in this context, "I don't throw anything away without using it for 20-25 years..."
- Warren Buffett's Best Advice for Success:
We have a lot to learn from successful people like Warren Buffett. His best advice for success: “You can't achieve everything in life. Make a list of the 25 main things you want to achieve in life to be successful. Then choose the top 5 topics from that list. Discard the remaining 20. Then start working hard on your chosen 5 achievements. If the other 20 thoughts come to mind, put them out of your head anyway. If you focus on them, you will not achieve anything”.
That is, according to Buffett, it is better to set goals as low as possible for success in life. And focus on them. At different times we want to do many things. But if you want to do all of them, nothing really gets done. Therefore, if you set few specific goals and pursue them, you are more likely to succeed in life.
Professional, financial, family, spiritual, service – these can be the criteria of your success. You may be a great entrepreneur, a good and righteous person, a good parent of children, a humanitarian. But if you add 10 more dreams to these, then maybe none of them will be done well. So set your goals very carefully, and move towards them with full focus.
If more dreams come up along the way, put them out of your head for now. After accomplishing the main goals, worry about the others.
Also complete the main goals one by one. Don't chase several at once. Focus on only one goal at a time. Only then is there a greater chance of success.
- Warren Buffett's iPhone scare.
Warren Buffett is one of the world's richest men, a household name in the stock market and an exceptional success in the investment sector. The lion's share of his investment is in Apple. So once the Apple chief called Buffett a great teacher. But this time Buffett was taught how to use the iPhone by the Apple chief, he said in an interview.
In an interview with Yahoo, Buffett said, 'I went to California and Tim Cook was very patiently trying to teach me how to operate the iPhone. I didn't understand much of it though. But he didn't give up.'
Buffett said he is afraid of the iPhone. He gets anxious and worried when people call his iPhone.
In his words, 'I would be scared if it (the iPhone) rang and I didn't know how to operate it.'
In an interview with Yahoo, he said that it was his failure to understand the iPhone. And Tim is an amazing person and the iPhone is an incredible product.
In a recent interview with CNBC, Buffett said that he has used Samsung's flip phone for a long time. Later, when Apple's new phone came on the market, he took the iPhone 11.
Then he said about iPhone 11, it is just a phone for him. He only makes phone calls with this device. Besides, it does not use any other features.
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