When billionaire Warren Buffett offers advice, take it.
At the age of 94, Warren Buffett – now worth $164.67 billion and serves as Chairman and CEO of Berkshire Hathaway – knows a thing or two about success.
Key Points About This Article
- Instead of chasing risky companies, go after the strong gems.
- Market fluctuations are inevitable, but they shouldn’t dictate your investment strategy.
- Even in notes to Berkshire Hathaway, protecting the reputation of the company is top priority, even above profits.
- Your future is too important to leave to chance. See if you’re on track for retirement by taking this simple quiz and matching with a fiduciary financial advisor serving your area. It only takes a moment, and is totally free. Click here to begin. (sponsor)
In fact, here are a few gems he’s shared over the last 94 years.
No. 1 – Invest in Quality, Not Quantity
“It’s better to buy a wonderful company at a fair price than a fair company at a wonderful price,” according to Buffett.
Instead of chasing risky companies, go after the strong gems. He’s emphasizing the importance of buying quality, even at a higher price, rather than sacrificing quality for a lower price. Buffett believes that focusing on companies with strong fundamentals, competitive advantages, and consistent earnings growth will pay off better.
No. 2 – Patience is Key
Warren Buffett believes that patience is an essential to success in the market.
He often likened the stock market to a temperamental character offering erratic deals. Market fluctuations are inevitable, but they shouldn’t dictate your investment strategy. Instead, look at the market with a long-term perspective. Resist the urge to react impulsively.
No. 3 – Reputation is Priceless
Warren Buffett declared in the business world, “It takes 20 years to build a reputation and five minutes to ruin it.” Safeguarding your reputation for integrity and competence is vital. Trust is a precious commodity that’s built over time. If you lose it, it isn’t easy to get back!
Unfortunately, many of us have learned this the hard way.
Even in notes to Berkshire Hathaway, protecting the reputation of the company is top priority, even above profits. That’s because once a company’s reputation is dented, it’s hard to recover.
No. 4 – Never Stop Learning
The saying “The more you learn, the more you earn” is from Warren Buffett. It emphasizes that continuous learning and acquiring new knowledge can lead to increased earning potential and career advancement.
Similar to Buffett’s financial strategies, diversifying your knowledge is just as important. In fact, by exploring various topics and opinions, you can become a stronger asset to not only yourself, but to potential business dealings.
No. 5 – Live Below Your Means
Living below your means is important, even in your 60s. Warren Buffett famously lives a very modest lifestyle despite his immense wealth. Frugality is vital if you want your wealth to last and have enough left over to give to others.
As even finance coach Suze Orman has said: Live below your means to achieve financial freedom. Identify your needs and your wants, eliminating part of the expenses tied to wants. Automate your savings. Figure out your savings goal. Consult a financial advisor.
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