Warren Buffett has one golden rule of investing, summarized as best “Forget what you know about buying fair businesses at wonderful prices; instead, buy wonderful businesses at fair prices.” Buffett’s fortune is $62 billion today, as he is the richest man on the planet. His stock is worth $119,000. Reinvesting your profits must be done instead of being tempted to spend it as the temptation to spend profit is initially there. If you are willing to be different, you can’t base your decision on trendy things. You have to be willing to trust yourself. Buffett started managing money for others in 1956 with $100,000 from various investors.
Unnecessary sitting and thinking is called “thumb-sucking” in Buffett’s mind. Spelling out the deal before you start involves telling the other partner or person involved what you want if the other person has what they want you to do in mind. Buffett also suggests watching small investments pile up over time, which can lead to greater expenses. Persistence can lead to a win against an established competitor. Buffett admires the unwavering courage of an underdog when the underdog wins. When you assess the risk, ask yourself “and then what?” This means that you can see all the possible consequences of a decision that needs to happen.
Tip number 10 is to know what success really means, since Buffett doesn’t measure success by dollars, but by how many people you surround yourself with that you truly love, who love you back. How people love you is the true test behind life, not how much money you make even if there are times you have to know when you need to quit, Buffett knows that how to walk away from a loss is important. Buffett also knows that it is best to live debt-free because of debt piles up.