10 Rules by Warren Buffet
Taken from The Tao of Warren Buffet
Do you dread Mondays?
I want to suggest that you haven’t found your Ikigai yet.
Your Ikigai is the beautiful Japanese word for Passion and Purpose, and the reason for waking up in the morning bigger than ourselves.
In the #2020Motivation – New decade, new you series, I will give you potent ideas and habits to live a life that you adore.
In this episode, 10 Rules by Warren Buffet (taken from The Tao of Warren Buffet)
Getting Rich and Staying Rich
1.
Probably the most well-known quote by Warren Buffet is this:
Rule nr 1: Never lose money
Rule nr 2: Never forget Rule nr 2.
Warren Buffet applied this in his personal life, by driving a VW Bettle long after becoming a multi-millionaire.
2.
Never be afraid of asking a proper selling price, and to offer to little when buying.
In an investment we are generally no selling ourselves rich, but it’s the purchase price that determines the outcome of the investment.
3.
Be interested in investments when no one else are and step away from them when they become over popular.
Buy want people don’t want today but will be dying for tomorrow.
Brokers will always sell you the flavour of the month.
When you purchase with the crowd, there will never be a lot left of the steak.
In recent years, Bitcoin come to mind. I still remember how everyone jumped on the bandwagon and suddenly the market prices fell to pieces.
Be fearful when other are greedy, and greedy when other are fearful.
4.
You should invest like one should marries, for life.
Never invest in something you are not willing to keep for the rest of your life.
5.
Be careful who you take advice from.
In Wall street the people ride in Rolls Royce’s to people they take financial advice from that uses the subway.
The brokers get rich from commission on selling to investors. Think about the movie, the Wolf of Wall Street.
You don’t go to Mercedes and ask then what is the best brand to purchase. The answer you will receive will be obvious.
Warren Buffet on Business
6.
Accounting is the language of business.
Don’t underestimate the power of accounting and admin. By at least understand the basics of financial statements, you can evaluate your business and make more informed decisions in it.
7.
Warren looks for a business in which he believes he can predict what they are going to look like in the future. The internet will not change the way people will be chewing bubble-gum.
Education
8.
You can learn from your own mistakes, but you want to learn from other people’s experiences if you can.
The value of reading the biographies and watching documentaries about other successful entrepreneurs, provide a massive insight into the success and failure of them.
The workplace
9.
Enjoy the process more than the money,
When we live our passion, we will be passionate about building our business, and money will flow as a result of that.
10.
If you hit a hole in one every time you play golf, you won’t be playing it for very long.
The Flow state comes to mind for me. We receive ultimate enjoyment and experience when are in the flow state. How do we achieve this state? By being in a constant process of doing challenging pursuits, and keeping ourselves just outside of our comfort zone.
Now a few bonus ideas:
Don’t diversify
11.
When you are involved in 50 things, you will end up with a Zoo.
The person trying to catch two rabbit, caught neither.
Put your attention to the vital few ideas that will move the needle for you.
Circle of competence
12.
An investment must be rational. If you don’t understand it, don’t do it.
Not every investment is for you. Invest in something that excites you and you know what is going on.
When we understand the business, we can better express it, so that others can understand it as well.
13.
Develop a dream team. If your team needs you to help to manage the business, you are probably both in trouble. Find people that can manage your business and trust in them to do that.
Lastly
14.
Money merely bring out the basic traits or behaviour out in people. If they were nasty people before, they will become nasty millionaires of billionaires. Money wont change this. Let’s not be one of them.
