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These 5 Wealth Tips From Warren Buffet Will Change Your Life

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Obama presents medal to Warren Buffet
Former U.S President (L) Barack Obama presenting 2010 Medal of Freedom to Warren Buffet

One of the people who come into mind when the “guru’s” of long-term investment is talked about is the American magnate, philanthropist and investor Warren Buffet. As of the year 2017, he is considered as the fourth wealthiest person In the world, having a total net worth of $76.9 billion according to Forbes.

A proven secrete to success in anything is to identify people who have succeeded in what you want to succeed in, follow their steps, and you will get similar results. It is however of no doubt that everyone wants to listen to the mogul Warren Buffet when he speaks about wealth or shares from his wisdom.
I am sharing with you 7 lessons from the wisdom one of the most successful business people of all time. Enjoy.

“Risk comes from not knowing what you’re doing”
The most valuable investment you can make is in yourself, investing in making yourself better. Buffet considers this investment as one of the best you can make. It becomes no surprise that Buffet himself is known to read 5 hours every day. The better informed you are about any endeavor, the better decisions you make and the and the more unnecessary risks you take.

“Someone’s sitting in the shade today because someone planted a tree a long time ago”
You see, Buffet believes that you have to be a long term thinker, be it with spending, saving or investing money. The fruits of your labour might not necessarily blossom tomorrow, or the day after. But it will surely blossom. So take one step at a time and keep your eye on the goal. Most people are living enviable lives today because of sacrifices they made years back.




“Price is what you pay; value is what you get”
Most often than not, the price we pay for anything and the value we get are not the same. In fact, a highly priced item could be as good as nothing. And a lowly priced item could provide so much value. Of course, the reverse is true. For instance in the case of buying a stock, you should buy because it’s share price is lower than the intrinsic value of the venture, not merely because it’s price is low. When making investment decisions do well to consider the price and value separately.

“Cash … is to a business as oxygen is to an individual: never thought about when it is present, the only thing in mind when it is absent”
People wonder how Buffet’s Berkshire Hathaway is able to survive recessions and even come out better than they went in. The secrete is simple, Buffet understands the value of keeping an emergency fund, and it works for them perfectly. This is evident when in 2008 despite the crashing market, Berkshire Hathaway had enough money to make very lucrative investments. In your own personal finance terms, make sure to keep enough funds for the rainy day.

“If you’re in the luckiest 1% of humanity, you owe it to the rest of humanity to think about the other 99%.”
The Giving Pledge is Co founded by Buffet which has the aim of getting billionaires to give away their fortunes. Since Buffet himself pledged to give away all of his wealth to charity, he has given away billions of dollars’ worth of his Berkshire Hathaway shares to the benefit of various charitable establishments. Even if you’re not from the 1%, you can very well in your own means five back to society.



Abdmumyn

The author Abdmumyn

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