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10 Powerful Lessons Everyone can Learn from Warren Buffett for Business Success

10 Powerful Lessons Everyone can Learn from Warren Buffett for Business Success

With an estimated net worth of $72 Billion, Warren Buffett is one of the most successful, wealthiest businessmen and investors of all time. There is no doubt that we can all learn more than a few things about doing business and making wealth from this remarkable billionaire, whose been acquiring, starting and growing businesses for longer than many of us have been alive.

His company, Berkshire Hathaway, owns and operates some of the largest corporations in the world, including Helzberg DiamondsFlightSafety International, and NetJets. And Buffett generously shares lessons he’s learnt along the way through his extensive writings and talks, and by the way he leads his life. Here are powerful lessons we can all learn from Buffett to succeed in business and in life today.

1. Do work that you love.

Success comes when you do what you love. Warren Buffet lives by this rule and urges us all to live by it too. When you do what you love and are passionate about it, he says, you’ll never work a day in your life.

“There comes the time when you ought to start doing what you want. Take a job that you love. You will jump out of bed in the morning. I think you are out of your mind if you keep taking jobs that you don’t like because you think it will look good on your resume. Isn’t that a little like saving up sex for your old age?”

2. Don’t “thumb suck.”

Warren Buffett prides himself in making swift, well-informed decisions and acting on them just as fast. He deems any unnecessary dilly-dallying as “thumb sucking.” Do your research thoroughly, well in advance. Gather all the necessary information and act decisively. Say “No” if you have to.

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“The difference between successful people and really successful people is that really successful people say no to almost everything.”

3. Spell out the specifics of a deal beforehand.

Warren Buffett tells a story about when he was a young boy. His grandfather, Ernest, hired him and a friend to dig out the family grocery store after a blizzard. The boys spent five hours shovelling until they could barely straighten their frozen hands. Afterward, his grandfather gave the pair less than 90 cents to split. Buffett was horrified that he performed such backbreaking work only to earn pennies an hour.

Even when you are dealing with friends and relatives, have all the specifics of the deal spelt out beforehand, including your monetary benefits. Your bargaining leverage is always greatest before you begin a job—that’s when you have something to offer that the other party wants.

“I am a better investor because I am a businessman, and a better businessman because I am an investor.”

4. Assess the risk involved.

Think about the worst and best possible scenarios and promptly make the most rational, progressive decision. That’s basically the advice Buffet gave his son, Howie, when the FBI accused the younger Buffett of price-fixing in 1995. Howie quickly realized that the risks of staying in his then troubled company far outweighed any potential gains, and so he quit the next day. Assessing risks carefully helps you see where you are struggling and can guide you to make smarter decisions.

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“I don’t look to jump over seven-foot bars; I look around for one-foot bars that I can step over.”

5. Exercise vigilance over every expense and spending.

Warren Buffett is well-known for being frugal and encouraging others to do so. He’s lived in the same house he bought when he was 28 for a mere $31,500 to date. Being frugal and conservative with your spending helps you avoid waste. And when you avoid waste, you make your money work for you and save enough to invest for the future.

“If you buy things you do not need, soon you will have to sell things you need.”

6. Limit your borrowing and what you owe others.

Warren Buffet has never borrowed excessively, even when he was starting out in business. He says, “Nothing sedates rationality like large doses of effortless money.” He has always negotiated with creditors to pay what he can, and when he is debt-free, saved his money to invest. Living on handouts, loans and credit cards will not make you rich.

“I have pledged – to you, the rating agencies and myself – to always run Berkshire with more than ample cash. We never want to count on the kindness of strangers in order to meet tomorrow’s obligations. When forced to choose, I will not trade even a night’s sleep for the chance of extra profits.”

7. Reinvest your profits.

In high school, Warren Buffet and a friend bought a pinball machine and put it to work in a barbershop. With the money they earned, they bought more machines until they had eight of them in different shops. The friends later sold the venture and Mr. Buffett used his proceeds to buy stocks and the rest to start another business. By the time he was 26, he had amassed $174,000, which is equivalent to about 1.4 million in today’s value.

Look broadly for investment opportunities and reinvest like you have a single lifetime “punch card” with only 20 punches—make each one count. Even a small investment can generate great wealth if you are diligent enough to favor substance over form.

“I try to buy stock in businesses that are so wonderful that an idiot can run them. Because, sooner or later, one will.”

8. Judge yourself by your own standards.

Don’t base your decisions, successes or even happiness on what others say or do. Buffet notes: “You don’t have to swing at everything—you can wait for your pitch. The problem when you’re a money manager is that your fans keep yelling, ‘Swing, you bum!'” Instead of following the crowd, measure yourself by your “Inner Scorecard”—your own standards and not the world’s.

 “I would say the most satisfying thing actually is watching my three children each pick up on their own interests and work many more hours per week than most people that have jobs, and trying to intelligently give away that money in fields that they particularly care about.”

9. Be consistent and patient.

Warren Buffett says, “Time is the friend of the wonderful business, the enemy of the mediocre.” The long and rocky road to success holds many valuable lessons and makes victory that much sweeter. So, be patient and keep pressing on. Don’t obsess over quick results and instant gratification. Success doesn’t come overnight—not even for Warren Buffett.

“No matter how great the talent or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant.”

10. Know when to quit.

Warren Buffet makes mistakes just like any one of us, but he learns from his mistakes and doesn’t repeat them. He recalls: “I bought a company in the mid-’90s called Dexter Shoe and paid $400 million for it. And it went to zero. And I gave about $400 million worth of Berkshire stock, which is probably now worth $400 billion. But I’ve made lots of dumb decisions. That’s part of the game.” He is, however, quick to add: “Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.”

Know when to walk away from a loss. And remember in businesses and in people, better quality businesses are more likely to grow and compound cash flow; low quality businesses often erode.

“You only have to do a very few things right in your life so long as you don’t do too many things wrong.”

*all quotes are from billionaire Warren Buffett

Featured photo credit: Fortune Live Media via flickr.com

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Last Updated on August 16, 2018

16 Productivity Secrets of Highly Successful People Revealed

16 Productivity Secrets of Highly Successful People Revealed

The same old motivational secrets don’t really motivate you after you’ve read them for the tenth time, do they?

How about a unique spin on things?

These 16 productivity secrets of successful people will make you reevaluate your approach to your home, work, and creative lives. Learn from these highly successful people, turn these little things they do into your daily habits and you’ll get closer to success.

1. Empty your mind.

It sounds counterproductive, doesn’t it?

Emptying your mind when you have so much to remember seems like you’re just begging to forget something. Instead, this gives you a clean slate so you’re not still thinking about last week’s tasks.

Clear your mind and then start thinking only about what you need to do immediately, and then today. Tasks that need to be accomplished later in the week can wait.

Here’s a guide to help you empty your mind and think sharper:

How to Declutter Your Mind to Sharpen Your Brain and Fall Asleep Faster

2. Keep certain days clear.

Some companies are scheduling “No Meeting Wednesdays,” which means, funnily enough, that no one can hold a meeting on a Wednesday. This gives workers a full day to work on their own tasks, without getting sidetracked by other duties or pointless meetings.

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This can work in your personal life too, for example if you need to restrict Facebook access or limit phone calls.

3. Prioritize your work.

Don’t think every task is created equal! Some tasks aren’t as important as others, or might take less time.

Try to sort your tasks every day and see what can be done quickly and efficiently. Get these out of the way so you have more free time and brain power to focus on what is more important.

Lifehack’s CEO has a unique way to prioritize works, take a look at it here:

How to Prioritize Right in 10 Minutes and Work 10X Faster

4. Chop up your time.

Many successful business leaders chop their time up into fifteen-minute intervals. This means they work on tasks for a quarter of an hour at a time, or schedule meetings for only fifteen minutes. It makes each hour seem four times as long, which leads to more productivity!

5. Have a thinking position.

Truman Capote claimed he couldn’t think unless he was laying down. Proust did this as well, while Stravinsky would stand on his head!

What works for others may not work for you. Try to find a spot and position that is perfect for you to brainstorm or come up with ideas.

6. Pick three to five things you must do that day.

To Do lists can get overwhelming very quickly. Instead of making a never-ending list of everything you can think of that needs to be done, make daily lists that include just three to five things.

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Make sure they’re things that need to be done that day, so you don’t keep putting them off.

7. Don’t try to do too much.

OK, so I just told you to work every day, and now I’m telling you to not do too much? It might sound like conflicting advice, but not doing too much means not biting off more than you can chew. Don’t say yes to every work project or social engagement and find yourself in way over your head.

8. Have a daily action plan.

Don’t limit yourself to a to-do list! Take ten minutes every morning to map out a daily action plan. It’s a place to not only write what needs to be done that day, but also to prioritize what will bring the biggest reward, what will take the longest, and what goals will be accomplished.

Leave room for a “brain dump,” where you can scribble down anything else that’s on your mind.

9. Do your most dreaded project first.

Getting your most dreaded task over with first means you’ll have the rest of the day free for anything and everything else. This also means that you won’t be constantly putting off the worst of your projects, making it even harder to start on it later.

10. Follow the “Two-Minute Rule.”

The “Two-Minute Rule” was made famous by David Allen. It’s simple – if a new task comes in and it can be done in two minutes or less, do it right then. Putting it off just adds to your to-do list and will make the task seem more monumental later.

11. Have a place devoted to work.

If you work in an office, it’s no problem to say that your cubicle desk is where you work every day.

But if you work from home, make sure you have a certain area specifically for work. You don’t want files spread out all over the dinner table, and you don’t want to feel like you’re not working just because you’re relaxing on the couch.

Agatha Christie never wrote at her desk, she wrote wherever she could sit down. Ernest Hemingway wrote standing up. Thomas Wolfe, at 6’6″ tall, used the top of his refrigerator as a desk. Richard Wright wrote on a park bench, rain or shine.

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Have a space where, when you go there, you know you’re going to work. Maybe it’s a cafe downstairs, the library, or a meeting room. Whenever and wherever works for you, do your works there.

12. Find your golden hour.

You don’t have to stick to a “typical” 9–5 schedule!

Novelist Anne Rice slept during the day and wrote at night to avoid distractions. Writer Jerzy Kosinski slept eight hours a day, but never all at once. He’d wake in the morning, work, sleep four hours in the afternoon, then work more that evening.

Your golden hour is the time when you’re at your peak. You’re alert, ready to be productive, and intent on crossing things off your to-do list.

Once you find your best time, protect it with all your might. Make sure you’re always free to do your best uninterrupted work at this time.

13. Pretend you’re on an airplane.

It might not be possible to lock everyone out of your office to get some peace and quiet, but you can eliminate some distractions.

By pretending you’re on an airplane, you can act like your internet access is limited, you’re not able to get something from your bookcase, and you can’t make countless phone calls.

Eliminating these distractions will help you focus on your most important tasks and get them done without interruption.

14. Never stop.

Writers Anthony Trollope and Henry James started writing their next books as soon as they finished their current work in progress.

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Stephen King writes every day of the year, and holds himself accountable for 2,000 words a day! Mark Twain wrote every day, and then read his day’s work aloud to his family to get their feedback.

There’s something to be said about working nonstop, and putting out continuous work instead of taking a break. It’s just a momentum that will push you go further./

15. Be in tune with your body.

Your mind and body will get tired of a task after ninety minutes to two hours focused on it. Keep this in mind as you assign projects to yourself throughout the day, and take breaks to ensure that you won’t get burned out.

16. Try different methods.

Vladimir Nabokov wrote the first drafts of his novels on index cards. This made it easy to rearrange sentences, paragraphs, and chapters by shuffling the cards around.

It does sound easier, and more fun, than copying and pasting in Word! Once Nabokov liked the arrangement, his wife typed them into a single manuscript.

Same for you, don’t give up and think that it’s impossible for you to be productive when one method fails. Try different methods until you find what works perfectly for you.

Featured photo credit: Unsplash via unsplash.com

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