Recommendations for those wishing to get rich from investor Warren Buffett
1. Reinvest revenue
When you make your first big money, you’re tempted to spend it. Not do this. You better put it in a business that you think is profitable. I learned that early in high school. My friend and I bought a used pinball machine and installed it in the Barber shop. The money we have not spent, as would have done in our place ordinary teenagers, and began to buy other machines. By the age of 26, I had already $174,000, which is $1.4 million for modern money
2. Be ready to be different
Don’t make decisions based on what others say. When I started to manage money, having collected from several investors $100 000, I was called a crank and predicted me a failure. But 14 years later, I closed the partnership, and it was worth over $100 million. For me, the market is just what everyone else does. To be above the market, you need to measure yourself on your internal scale, judging yourself by your own standards, not the public
3. Don’t “suck your thumb”
Collect all the information in advance, make a quick 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 from this-and almost immediately say my decision
4. Make arrangements on the beach.
All disputes, especially money, must be resolved before the start. I learned that bitter lesson before the slot machine business. Grandpa hired me and my friend to clean up his shop. We dragged heavy boxes for 5 hours, and when finished, the grandfather gave us 90 cents for two. I was shocked by such injustice
5. There are no trifles in business
I sincerely admired my friend who thought of painting only the wall of the office that faced the road, and thus saved on paint. Learn to save on the little things, it will greatly increase your income
6. Live within your means
Stay in debt. Life on credit hasn’t made anyone a millionaire yet. I have never in my life borrowed money, and always tried to earn first, and then do what is. My advice to the debtor is to bargain with creditors to pay what you can. And when you close the debt, work to collect at least a small amount that can be put into action
7. Be persistent.
Perseverance and perseverance with less capital 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, conducts business. From the hostess of a small shop, she turned into a true legend of the industry, opening a network of furniture stores across America
8. Time out of the game
As a teenager, I got on the run, put once and lost. To make up for the loss, I bet again and lost again. It was a week’s pay. But I found the strength to leave and never made that mistake again
9. Assess 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 scenarios of the company. He quickly realized that the risks far outweigh any potential benefits and left the next day. Ask yourself ” And then what?”- this will help to imagine all the possible consequences and make the right choice
10. Find out the meaning of success
Despite my fortune, I never measure success in dollars. After living to a respectable age, I realized that success in life is not measured by money, but by the number of people you love and who love you.