“I can’t define success for you but I can define happiness because that’s what I am…. happy” – Warren Buffett
Warren Buffett is one of, if not, the best investors to ever exist and he is also a personal hero of mine. Renowned as “The Oracle Of Omaha” worldwide, Warren Buffet has accumulated a substantial net worth of $80+ Billion dollars. Despite this, he lives a very humble and honest life. Famously he still lives in the same house in Nebraska since 1938 which he bought for $31500.
“Taking jobs to build up your resume is like saving up sex for old age” – W.B
Warren Buffetts life to this date has been incredible and inspirational. A genius born and raised in Omaha, Nebraska, Warren took an interest in business immediately. Inspired by a book called “A Thousand Ways To Make $1000”, he undertook many entrepreneurial adventures such as selling chewing gum, coca-cola or weekly magazines door to door. At age 16 he was making more than his parents and his teachers. By the time Buffett finished high school he had savings of $9800 dollars (about $99000 today). Buffett wanted to skip college and go directly into business but he was overruled by his father.
Initially Buffett applied to Harvard but was rejected and ended up in Columbia where he met his mentor, Ben Graham. Graham paved the way for Buffets investment career, teaching him the very important principles of, value investing.
“The basic ideas of investing are to look at stocks as business, use the markets fluctuations to your advantage, and seek a margin of safety. That’s what Ben Graham taught us. A hundred years from now they will still be the cornerstones of investing” – Warren Buffett.
I know from personal experience, using the same investing philosophy, that it works like a charm. No bullshit like Tim Sykes would sell you. On a side note, if you are interested in investing and you have intermediate knowledge with regards to finance or accounting, read “The Intelligent Investor” or “Security Analysis” by Ben Graham. I consider these the only “get rich quick” books you will ever need. Throughout his career, Buffett acquired large positions in many companies such as Coca-Cola, Washington Post, Gillette, Heinz, Apple and many more. Most famously was his aggressive take over of Berkshire Hathaway, a once struggling textile company which he turned into an insurance company which is now worth more than $250’000 a share. He originally purchased the company for $7 a share back in 1962.
This is the power of value investing at it’s finest.
“I always knew I’d be rich someday, I never doubted that” – Warren Buffet
Despite his capitalist love, he does have a social side. One which was brought to light by his late wife, Susan Thompson. She convinced Buffett to do more with his money than to just accumulate mass amounts of it that was not benefiting society at all. To this day Buffett has become the worlds largest philanthropist donating more than $100 billion to various charities throughout the world. He has done a lot of work with the Bill and Melinda Gates foundation as he won’t give money to people he doesn’t trust to do good with it. And rightly so, charities are not to be trusted.
“You look for three qualities in a person: integrity, intelligence, and energy. And if you don’t have the first, you can forget about the other two.” – Warren Buffett.
Throughout the past couple of years I’ve learned many lessons from Warren Buffet. Here are the following lessons that I’ve learnt from Buffett that will come in handy for you to;
- “Don’t save what’s left after spending but spend what is left after saving.”
- “Never test the depths of the water with both feet.”
- “You can’t produce a baby in one month by getting 9 women pregnant, good things take time.”
- “Never depend on a single source income. Make numerous investments that produce numerous incomes.”
- “If you buy things you don’t need, soon you’ll have to sell things you need.”
- “Honesty is an expensive gift, don’t expect it from cheap people.”
- “Be fearful when others are greedy and be greedy when others are fearful.”
- “I made my first investment at age 11, I was wasting my life up until then.”
- “Price is what you pay, value is what you get.”
- “Someone is sitting in the shade today because someone planted a tree a long time ago.”
- “Risk comes from not knowing what you’re doing.”
- “Without passion, you don’t have energy. Without energy, you have nothing.”
You might see above a bunch of ambiguous quotes but what I want you to do is think long and hard about them. Think about how each one applies to your life because I guarantee you, these are the most important life lessons you will ever learn.
Make sure to check out his documentary below. It’s an emotional rollercoaster.
SJB & GQ.