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What I’ve Learned From Warren Buffett About Wealth

What I’ve Learned From Warren Buffett About Wealth

Warren Buffett is one of the richest men in the world, but his reputation for folksy wisdom, frugality and simplicity make him seem like just a regular guy, like he might be the billionaire next door.  Fortunately, Buffett’s commentary about his investment decisions provide us with valuable study materials in the school of investing. Here are some of Buffett’s biggest lessons that we can learn from him.

1. Focus on long-term success

“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.” – Warren Buffett

You need a strategy for long-term success in the market. Buffett is always concentrated on finding a company to invest in that he feels will produce long-term results. He is not interested in the latest IPO, or the trendiest stock everyone else is interested in. Buffett possesses a mindset that many investors don’t have – thinking long term.

Find the businesses that you believe have long-term growth potential. It’ll change your mindset, and your success rate.

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2. Invest in quality companies

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” – Warren Buffett

Buffett is only focused on discovering worthy companies for investment. He always evaluates the whole company when buying stocks. That make the investment more personal  and will lead you to assess the company on a much deeper level. It’s by trying to shift your mindset from that of an ambiguous stockholder to that of a sole owner of the business that’ll help you find truly quality companies.

3. Get in when others are getting out

“Be fearful when others are greedy and greedy when others are fearful.” – Warren Buffett

Whenever there’s a recession you’ll get lots of news about Warren Buffett. In 2008, Buffett invested $25 billion into the market when the rest of the world was getting out. Buffett always believes that a recession is the perfect time to find quality companies whose stock is cheap. He took advantage of this fact in 2008, and profited by nearly $10 billion!

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4. Start investing today

“Someone is sitting in the shade today because someone planted a tree a long time ago.” – Warren Buffett

Buffett started at a young age, and this was the main factor that lead him to achieve more success later in life. At age 11, he used to take a paper route, sold chewing gum door-to-door, and even bought his first shares of stock. Starting young allowed him to find his own way to success. Don’t wait for the right time to invest or to get your personal finances in order. It’ll influence your financial success later in life. Don’t procrastinate, start investing today!

5. Invest in what you know

“The stock market is a no-called-strike game. You don’t have to swing at everything – you can wait for your pitch.” – Warren Buffett

The most important thing about investment is that you will find thousands of companies to invest in, and different strategies that can all be successful. But, remember don’t use someone else’s investment strategy, or invest in a stock simply because someone else is doing it. Develop your own strategy that fits your personal financial goals, and always look for the companies whose business model you’re already familiar with.

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6. Challenge yourself to be better

“It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.” – Warren Buffett

You can never find success financially, personally or professionally if you don’t challenge yourself and hold yourself accountable. The best way to do this is to associate with smarter and more successful people than yourself. As the saying goes, you’re the sum of the five people you hang around the most – so try to make those five smart people!

7. Do your homework and be disciplined

“Only when you combine sound intellect with emotional discipline do you get rational behavior.” – Warren Buffett

Investors need these two ingredients the most in the investment game. You’ll get sound intellect after doing your homework, your research and an investigation of a company’s value. Discipline, on the other hand, will come with your ability to wait for the best time to enter. Practice both of these and you’ll take your investment to the next level.

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8. Be passionate

“Without passion, you don’t have energy. Without energy, you have nothing.” – Warren Buffett

Be passionate about your work and chase what you are passionate about. Passion will enable you to go to the ends of the earth to fulfill your dream. That will be your fuel in your journey to success. It will make you unstoppable. It will make you strong when times get tough, and ultimately it will make life so worth living.

Featured photo credit: BorsheimsJewelry via flickr.com

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Tayyab Babar

Tayyab is a PR/Marketing consultant. He writes about work, productivity and tech tips at Lifehack.

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Last Updated on March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

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  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

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  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

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Featured photo credit: aryehsampson.com via aryehsampson.com

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