Note: This was previously posted in my Facebook account, on the 1st of June, 2010. Click it here.
“I always knew I was going to be rich. I don’t think I ever doubted it for a minute” – Warren Buffett
You must have known this person, right? The person you’ve heard nearly the most on every form, every kind of media you’ve ever seen or you’ve ever read. Once the richest man on the planet in 2007, the now-80-year-old business mogul has just decided to donate at least 40 billion dollars to the poorest billions on Earth. What are his secrets of keeping on his bonanza flowing until now? Here they are:
1.He bought his first share at the age of 11 and he now regrets for doing that too late!
– Things were very cheap at that time, and always encourage your children to invest.’ –
2.He bought a small farm at the age of 14 with savings from delivering newspapers.
– One could have bought many things with little savings, and always encourage your children to start some kind of business.-
3.He still lives in the same 3-bedroom house in mid-town of Omaha (that’s why people hail him ‘The Sage of Omaha’), that he bought 50 years ago on the first time he got married, and now is estimated to be worth at half a million bucks. He says that he has everything he needs there. No walls, no fences. But beware of the robbers, then. Hahaha.
– Don’t buy more than what you ‘really need’ and always encourage your children to do the same.-
4.He still drives his own car, an old Volkswagen car. No driver, and no security personnels guarding him anywhere.
-You are what you are.-
5.He never travels or owns any private jets, although he owns the largest private jet company across the planet.
-Always think how you can accomplish things economically.-
6.His company, Berkshire Hathaway, obtains 63 companies, primarily concentrated on commodities, like coal, oil & gas, food & beverages, tobacco, energy, retailing, and etc. He writes only one letter each year to the CEOs of these companies, giving them goals to achieve every year. He never holds any meetings or calls them on a regular basis.
-Assign the right people to do the right job.-
7.Two rules for his CEOs:
Rule number 1: do not lose any of your shareholder’s money they have invested in
Rule number 2: remember rule number 1.
-Set goals and make sure that people will always focus on them.-
8.He never joins any executive clubs. What will he do to entertain himself? Watching popcorns at the same time watching TV at home.
-Don’t try to show off. Just be yourself and do what you enjoy doing.-
9.Warren Buffett has neither cellphone, computer, nor laptop on his desk.
-I’m a dinosaur.-
10.Stay away from bank loans, and remember:
A. Money doesn’t create man but it is the man that creates money.
B. Live your life as simple as you can be.
C. Don’t do what others say, just listen to them, but do what you feel good.
D. Just wear on things that you feel comfortable. Brands do not matter.
E. Don’t waste money on unnecessary needs.
F. All these choices are up to you, and if you can, please spread these principles to others.
1. If you are an investor, try to invest on a company whom not only you lay your trust in, but the whole world. Also remember, invest in a company whose services are needed by the people the most.
-Buffett invests tens of billions of dollars in Walt Disney, CocaCola, McDonalds, Wal-Mart, KFC, Chevron, ConocoPhillips, PetroChina, BYD Electric (producer of electric-fueled vehicles), and etc.
2. Don’t invest in a sector which relatively changes at any time. They may once make you go into the seventh heaven, but once they get troubles, they may bankrupt you.
-Buffett rejected the offer to invest in Internet companies near the year 2000. His reason: too many speculators are playing the prices on it, and one day, once it plummets, the whole world will be in trouble. Guess what? Several months afterwards, between 5 to 10 trillion dollars evaporated out of the stock exchanges, costing the bankruptcy of million investors across the globe, due to the plummeting prices of all the Internet companies!
3.Invest in a company that will keep on growing all the time. Company whose products play a prominent part on human’s life.
-Buffett once said that he would prefer investing in a tobacco manufacturer, or a shoe manufacturer, or a coke manufacturer to an Internet company which promises double-digit folds of profits in less than a single day. ‘It costs only a penny to make a cigarette, and a dollar to sell it,’ he said.
‘The happiest people do not necessarily have the best things, but they simply appreciate every thing that they have.’