Becoming Wealthy – Warren Buffet’s Top 14 tips

Known as the Oracle of Omaha, Warren Buffet is considered one of the most successful investors in the world. As of May 2017, he is the second wealthiest person in the United States with a total net worth of $78.7 billion.1 Which by the way, is greater than the GDP of Uruguay2 — yet he’s still living in the modest house he bought in 1958 for $31,000.3

Through the years, he’s always had good advice about investing, and even about life in general.
Based on a recent Money.com4 article, here are Warren Buffett’s top 14 investing and life tips.

Warren’s investing tips:

1. “If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value.”
2.  “The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.”
3. “In the short term, the market is a popularity contest. In the long term, the market is a weighing machine.”
4. “I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”
5. “I don’t look to jump over seven-foot bars. I look around for one-foot bars that I can step over.”
6. “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
7. “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
8. “I’ve seen more people fail because of liquor and leverage — leverage being borrowed money. You really don’t need leverage in this world much. If you’re smart, you’re going to make a lot of money without borrowing.”

Warren’s life tips:

1. “Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be a more productive than energy devoted to patching leaks.”
2. “It is not necessary to do extraordinary things to get extraordinary results.”
3. “Chains of habit are too light to be felt until they are too heavy to be broken.”
4. “There seems to be some perverse human characteristic that likes to make easy things, difficult.”
5. “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.”
6. “The difference between successful people and really successful people is that really successful people say no to almost everything.”

Takeaway

No one can argue Mr. Buffet’s success. A brilliant mind from a young age (his classmates would recall how he could memorize entire columns of numbers), he has amassed wealth and the respect of the world’s top business leaders. So whatever your goals are in life, maybe some of his advice can help along the way.