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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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David K. William

David is a publisher and entrepreneur who tries to help professionals grow their business and careers, and gives advice for entrepreneurs.

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Published on April 16, 2019

How Self Care Can Help You Live Your Best Life

How Self Care Can Help You Live Your Best Life

When was the last time you did something for yourself?

Whether it was deciding to treat yourself with a little something or travel for some R&R, how often do you practice self-care?

Well, as good as above sounds, there’s a common misconception that many of us have about self-care: that it’s only about indulgence and enjoyment.

However, self-care goes far beyond indulgence. It’s actually about respecting your mind and body, understanding its limits, and being able to take care of every part of yourself, in a holistic way.

And, you really don’t have to go to extreme measures or do anything specific–like meditating or following a plant based diet–in order to practice self-care. You just have to make sure that what you’re doing is in your best interests.

So how can you make that happen?

Below are a few proven methods that will help you become a better version of you. Follow through with these regularly and you’ll be well on your way to living your very best life.

Listen to Yourself

The bulk of self-care is knowing yourself.

This means knowing your body’s limitations, and being in tune with your feelings, emotions and thoughts. So it’s important, then, to know who you are and what you want to do in life, in order to truly say that you know yourself. 

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What is your purpose?

Have you ever thought about this question?

Your purpose doesn’t have to remain the same throughout your life. What you found a purpose in at age 19 would likely be different at age 49.

In your current situation, think about the different roles that you have – as a working professional, a spouse, a partner, a parent, etc.

Do you feel like you are fulfilling your purpose through any of these roles?

All you have to do is ensure that what you’re chasing is meaningful to you; this will bring focus and motivation as you strive to achieve your goals.

If you have your purpose defined, then that’s awesome! You know what drives you and why.

But, if you don’t feel like you have a purpose nailed down, it’s good to start by asking why.

For example, why are you working in your particular job or industry? If the reason is vague or unclear, then your motivational energy will be the same. In which case, you may find yourself not having a direction for where you’re headed in life.

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If you’d like to learn more about finding your purpose, then I recommend you check out this article:

How to Get Motivated and Be Happy Every Day When You Wake Up

Seek Out Continuous Education

Now, this may seem less common when you think of self-care, but lifelong learning is incredibly useful and an important component of taking care of yourself.

It’s Super Practical

Lifelong learning is extremely practical these days and does not require as much effort as it may have in the past. Long gone are the days when you could only find information on something by visiting a library. In this day of the internet, anything you can imagine is at your fingertips.

You don’t need to physically go to a learning institution to learn. You can watch Youtube videos to learn new skills, take online courses to earn a degree, and scroll through an endless amount of articles, books and journals from reputable news and informative sites.

When you’re constantly pushing yourself to learn and take up new things, your mental health also improves. Research shows that an active and engaged mind is responsible for diminishing age-related memory loss and improves overall cognitive abilities.

Your Confidence Will Skyrocket

You’ll also have improved self worth as it teaches you to step outside of your comfort zone, which will undoubtedly improve your confidence.

You’ll also connect better with others by expanding your knowledge base. Learning exposes you to a multitude of new ideas and perspectives that you may have otherwise never considered. This also increases your adaptability. Whether it’s at work or just wanting to adapt to society, your peers, and loved ones, life long learning prepares you to take on new challenges.

You’ll Be More Desired in the Job Market

Another obvious reason for continuous education, is that your employability will also increase.

With the ever changing economy, and huge influences from technology, social media, science etc., job descriptions today are moving targets. Assignments and roles change so quickly in response to changing business demands, it becomes a Herculean task to keep a job description database current.

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In years past, stability was a characteristic of the world of work. Procedures, information, jobs, and organizations were established and provided continuity. Education was completed in the first 14 to 22 years of one’s life, followed by a long career occasionally punctuated by short-term job training.

Today, however, jobs, companies, and technology are disappearing and being created simultaneously. To remain current and maintain a competitive advantage in the human capital marketplace, an individual is challenged to continually learn.

People return to school at every age to enrich their skills and knowledge for their current positions. Some even prepare themselves for new jobs or career changes, moving them forward into new opportunities and technology.

We can be assured that we will be challenged to continue to learn new tasks and information throughout our lives. Successful careers belong to flexible, curious learners who are prepared for opportunities because they know themselves and where they make their best contribution. As Peter Drucker, the father of modern management stated,

“Knowledge is choice.”

Lifelong learning also increases social awareness and perspective. To genuinely understand and empathize with others, increase social awareness, and foster strong interpersonal relationships, it’s important to seek out new perspectives. Enhancing the skills that positively impact emotional intelligence can bring even greater happiness and success, both personally and at work; and, this is all part of self-care.

Improve Your Habits (Both at Work and at Home)

Now, the last piece of advice I want to introduce to your self-care regimen, is to improve your habits.

Habits define who you are, and are built up over time. You are what you eat is a great example of this. If you make it a habit to eat foods that nourish your body, rather than make your body feel bad, then you will be much healthier overall.

Good Habits Allow You to Reach Your Goals

Since habits dictate your days and nights, such as waking up every morning to get to work before a certain time, or brushing your teeth before bedtime every night, they play a major role in whether we do or do not reach our goals.

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When you form habits that allow you to progress towards your goals, you’re automatically living a purposeful day, everyday.

Habits Make Your Time a Priority

How do you spend your free time? Do you opt to lounge on the couch watching Netflix passively, or do you engage in activities that support your purpose in life?

It’s natural to waste a lot of time during the day, but fostering good habits will make you set a pattern for how you spend your time and give you the choice of what you choose to spend your time on. By improving your habits, you’ll find that you can be a LOT more productive. When you create good habits, you become more efficient with your time and a lot less is wasted.

This in essence creates an overall positive influence on your life, allowing you to treat your mind and body well, which is why improving your habits are so important to self-care.

Your Well Being Comes First

We live in such a fast-paced society, where we are often so caught up in our work, families, maintaining our social lives, our studies and everything in between. It’s an understatement to say that life can get a little overwhelming at times.

If you’ve ever watched the safety video onboard a plane, you’ll know that they always ask for a parent or adult to put on the safety mask first, before tending to the child. This may sound selfish, but the fact is that if you truly want to ensure the child’s safety, then your safety needs to come first so that you can protect and care for the child without complications from your end.

The same goes for self-care. We need to ensure that our well being is priority, so that we can be the best for the people around us.

Listening to yourself, practicing lifelong learning and improving your habits are steps that you can take to ensure you’re constantly in the best state of mind, alongside the indulgence and rest that you reward yourself with.

Featured photo credit: Photo by Raychan on Unsplash via unsplash.com

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