How to get rich
10 tips from Warren Buffett
Maybe you do not need to mention that Warren Buffett is the richest person on the planet with his condition, amounting to about 62 billion dollars. This same man has decided to share 10 of their secrets to success.
A. Reinvested profits
When you first make money, you're tempted to spend them. Do not do it. Instead, reinvested earnings. Buffett has understood this earlier. In high school, he and his friend bought a pinball slot machine that would fit into the barbershop . With the money earned, bought more equipment and so already had eight machines in different salons. When the friends sold the business, Buffett used his savings to buy shares and start another small business. At 26 he had won 174,000 dollars, equivalent to 1.4 million current money. Even the smallest amount can be a great wealth.
2. Be different
Do not base their decisions on what they say or what they do all all. When Buffett began managing money in 1956, was collected only 100 000 dollars for it was said that a big freak. He worked in Omaha, not Wall Street, and refused to tell parents where their money is invested. All predicted its failure, but when after 14 years ended their partnership, it cost more than $ 100 million. Instead of following the crowd, he looks for undervalued investments and also beat the average market each year. For Buffett medium / average mean what they do all. To stand on average, to match the inner pad, as Buffett calls it, to judge themselves according to their own standards, not the world.
3. Never suck your thumb
Gather all the information beforehand, you need to make a decision and check with friends and family to make sure you stick to the deadline. Buffett is proud to take quick decisions and act on them. He calls any unnecessary sitting and pondering, "sucking the thumb." When people offered him a business or investment, he said: "I will not talk unless they bring me the price."
4. Read the letter at the transaction before starting
Tools for your bargain is always best before you start work - so when you offer something the other wants. Buffett learned this lesson the hard way as a child when his grandfather Ernest hired him along with his friend to dig up the family grocery store after a snowstorm. The boys dug five hours while their frozen hands. Then his grandfather gave the two a total of 90 cents. Buffett was horrified that has done so much hard work to earn a dime. Always unambiguously clarify the specifics of the deal in advance, even with friends and relatives.
5. Observe the small costs
Buffett invests in businesses run by managers who are closely monitored and even the smallest cost. Once he acquired the company which owns the number of leaves in a roll of toilet paper with 500 pieces to make sure they are not deceived him (and it turned out that he cheated). He also admired a friend who painted only that side of my office building, which overlooks the road. Watching over all costs can increase your profits much.
6. Reduce Loan
Living on credit and loan will not make you rich. Buffett has never borrow a large sum of money - either for investment or mortgage. He received many heartbreaking letters from people who thought they could manage their loans, but were swallowed by debt. His advice: negotiate with creditors to pay what you can. Then when you get rid of your debts, work on that to save some money that you can use for investment.
7. Be consistent
With perseverance and ingenuity you can win a proven competitor. Buffett has acquired the Nebraska Furniture market in 1983 because I like the way its founder - Rose Blamkin led business. Mrs. Bi (as to call it) is a Russian immigrant who has become the market of a pawnshop into the largest furniture store in North America. Its strategy was to sell the products of big companies and had an incredible gift to negotiate. To Buffett, Rose embodied undaunted courage that stands out the winner of the losers.
8. Know when to stop
Once, when Buffett was a teen, went to the race cars. He bet and lost. To recover your money, bet on another car. He lost again and remained almost empty. I felt bad - he lost the week almost all of his savings. Buffett never repeated that mistake. One must know when to get out of the loss and not to allow anxiety to mislead try again.
9. Evaluate the risks
In 1995, Buffett's son - Howe was accused by FBI of deliberately keeping the same prices. Buffett advised Howie to imagine the worst and the best option if you stay in the company. His son quickly realized that the risks remain far more than outweigh the potential benefits and left the next day. Ask yourself "What will happen then?" And you can see the possible consequences when you try to make a decision, and you can make the smartest choice.
10. Find out what success really means
Despite his wealth, Buffett does not measure success by dollars. In 2006, he promised to give almost all his fortune to charity, mainly the foundation of Bill and Melinda Gates. He is adamant about raising monuments for himself - no buildings and facilities "Warren Buffett".
"I know people who have money and they receive a formal dinner in their honor or the hospital named after them. But the truth is that nobody loves them. When you reach my age, will you measure your success in life by how many people you want to love you, really love you. This is the ultimate check on how you lived your life "
Buffett says.
Photo: flickr.com, kalwa
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