Warren Buffett is the undoubtedly the world’s top investor but his success is hard to match. He built one of the world’s top businesses from the ground up and has risen to be one of the world’s richest men. He consistently beats the stock market and, in short, is one of the investing geniuses of our age.
Tony Robbins, a professional life coach, recently published a book outlining how to be successful with money. In the volume, he interviewed thew top investors including Warren Buffett, Carl Icahn, Ray Dalio, and John Bogle. What he found was that all four investors shared several things, including these four traits:
1. They accept they aren’t always right
No one can be right all of the time, and one of the most interesting things about Warren Buffett is how readily he admits his mistakes. You can see this in action in some of his shareholder letters—especially this one.
2. They hate losing money
Everyone hates losing money, but according to Robbins, these investors are even more obsessed with not losing money than the average person. Buffett is no exception, which can be seen in his famous quote: “Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.”
3. They minimize risks
It’s impossible to have an unusually successful business without taking risks, but Buffett understands that it’s important to mitigate those risks as much as possible. For example, Buffett has always been insistent that Berkshire Hathaway keep at least $20 billion cash on hand as a safety net, just in case something happens.
4. They give back
Warren Buffett is one of the world’s foremost philanthropists, and even his children are dedicated to giving back to the people. In fact, Buffett and his friend Bill Gates together started The Giving Pledge, which encourages the world’s wealthiest people to donate their money to charity either during their life or after their death.
“if you’re in the luckiest 1% of humanity, you owe it to the rest of humanity to think about the other 99%,” Buffett said.