Warren Buffett’s 10 Ways to Get Rich
With an estimated fortune of $62 billion, Warren Buffett is the richest man in the entire world. Here are some of Warren Buffett’s money-making secrets — and how they could work for you.
- Reinvest Your Profits: When you first make money in the stock market, you may be tempted to spend it. Don’t. Instead, reinvest the profits. Even a small sum can turn into great wealth.
- Be Willing To Be Different: Don’t base your decisions upon what everyone is saying or doing. To Warren Buffett, the average is just that — what everybody else is doing. 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’
- 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. Warren Buffett prides himself on swiftly making up his mind and acting on it.
- 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. Always nail down the specifics of a deal in advance — even with your friends and relatives.
- Watch Small Expenses: Warren Buffett invests in businesses run by managers who obsess over the tiniest costs. Exercising vigilance over every expense can make your profits — and your paycheck — go much further.
- 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.
- Be Persistent: With tenacity and ingenuity, you can win against a more established competitor. Warren Buffett acquired the Nebraska Furniture Mart in 1983 because he liked the way its founder, Rose Blumkin, did business. To Warren Buffett, Rose embodied the unwavering courage that makes a winner out of an underdog.
- Know When To Quit: Know when to walk away from a loss, and don’t let anxiety fool you into trying again.
- Assess The Risk: 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.
- Know What Success Really Means: Despite his wealth, Warren Buffett does not measure success by dollars. In 2006, he pledged to give away almost his entire fortune to charities.
“I know people who have a lot of money,” he says, “and they get testimonial dinners and hospital wings named after them. But the truth is that nobody in the world loves them. 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.”