Warren Buffett's 10 Ways to Get Rich - #1

#1. Reinvest Your Profits: 

When you first make money in the stock market, you may be tempted to spend it. Don't. Instead, reinvest the profits. 

Warren Buffett learned this early on. In high school, he and a pal bought a pinball machine to put in a barbershop. 

With the money they earned, they bought more machines until they had eight in different shops. 

When the friends sold the venture, Warren Buffett used the proceeds to buy stocks and to start another small business. 

By age 26, he'd amassed $174,000 -- or $1.4 million in today's money. Even a small sum can turn into great wealth.

Warren Buffett's 10 Ways to Get Rich - #2

#2. Be Willing To Be Different: 

Don't base your decisions upon what everyone is saying or doing. 

When Warren Buffett began managing money in 1956 with $100,000 cobbled together from a handful of investors, he was dubbed an oddball. 

He worked in Omaha, not Wall Street, and he refused to tell his parents where he was putting their money. 

People predicted that he'd fail, but when he closed his partnership 14 years later, it was worth more than $100 million. 

Instead of following the crowd, he looked for undervalued investments and ended up vastly beating the market average every single year. 

To Warren Buffett, 

• the average is just that -- what everybody else is doing.

• to be above average, you need to measure yourself by what he calls the Inner Scorecard, judging yourself by your own standards and not the world's.

Warren Buffett's 10 Ways to Get Rich - #3

#3. Never Suck Your Thumb: 

Gather in advance any information you need to make a decision, and ask a friend or relative to make sure that you stick to a deadline. 

Warren Buffett prides himself on swiftly making up his mind and acting on it. 

He calls any unnecessary sitting and thinking "thumb sucking." 

When people offer him a business or an investment, he says, "I won't talk unless they bring me a price." He gives them an answer on the spot.

Warren Buffett's 10 Ways to Get Rich - #4

#4. Spell Out The Deal Before You Start: 

Your bargaining leverage is always greatest before you begin a job -- that's when you have something to offer that the other party wants. 

Warren Buffett learned this lesson the hard way as a kid, when his grandfather Ernest hired him and a friend to dig out the family grocery store after a blizzard. 

The boys spent five hours shoveling until they could barely straighten their frozen hands. Afterward, his grandfather gave the pair less than 90 cents to split. 

Warren Buffett was horrified that he performed such backbreaking work only to earn pennies an hour. 

Always nail down the specifics of a deal in advance -- even with your friends and relatives.

Warren Buffett's 10 Ways to Get Rich - #5

#5. Watch Small Expenses: 

Warren Buffett invests in businesses run by managers who obsess over the tiniest costs.

He one acquired a company whose owner counted the sheets in rolls of 500-sheet toilet paper to see if he was being cheated (he was). 

He also admired a friend who painted only on the side of his office building that faced the road. 

Exercising vigilance over every expense can make your profits -- and your paycheck -- go much further.

TOP 10 Reasons to Love Warren Buffett

It was Warren Buffett’s 83rd birthday last week. Reflecting upon his life and career, it brings up many fantastic reasons to love this guy.

Let’s take a look at the top 10 reasons right now…

1. He has an intricate, sometimes contradictory complexity which he easily hides behind his folksy charm. A Forbes writer once said that, “Buffett is not a simple person, but he has simple tastes.”

2. Instead of living in the heart of the financial sector of Wall Street, Buffett chose to stay 1250 miles away in his hometown of Omaha, Nebraska.

3. He has a very strong internal scorecard in regards to all things investing. But his external scorecard is quite vulnerable when looking at many aspects of his personal life. He even has a penchant for seeking out mother figures.

4. Buffett’s perspective: “In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”

5. He’s humble. He’s like the guy in school that tells you he failed the math test, but turns out that he actually busted the top of the curve.

6. He thinks well beyond his years. His plans certainly exceed the length of his life span.

7. Here’s how Buffett says it… “Someone’s sitting in the shade today because someone planted a tree a long time ago.”

8. He’s human. He’s afraid of his own mortality and nuclear wars. He’s very adept at business relationships, but not so adept with personal ones. He does hold a grudge. His father is his hero.

9. Classic Buffett line: “Rule #1: Never lose money. Rule #2: Never forget rule #1.”

10. Buffett was once branded as a stingy miser. But there’s no question that he is of all – and less it was his intention from the beginning – to become one of the most giving philanthropists of his time. He has grown his potential givings at a 20% compounded rate per year, and plans to give the majority of it away.

So there you have it. More reasons to love Warren Buffett. Thanks for taking the time to read this today.

Source from WarrenBuffet.com

Warren Buffett's 10 Ways to Get Rich - #6

#6. Limit What You Borrow: 

Living on credit cards and loans won't make you rich. 

Warren Buffett has never borrowed a significant amount -- not to invest, not for a mortgage. 

He has gotten many heart-rendering letters from people who thought their borrowing was manageable but became overwhelmed by debt. 

His advice: 

• Negotiate with creditors to pay what you can. 

• Then, when you're debt-free, work on saving some money that you can use to invest.

Warren Buffett's 10 Ways to Get Rich - #7

#7. Be Persistent: 

With tenacity and ingenuity, you can win against a more established competitor. 

Warren Buffett acquired the Nebraska Furniture Mart in 1983 because he liked the way its founder, Rose Blumkin, did business. A Russian immigrant, she built the mart from a pawnshop into the largest furniture store in North America. 

Her strategy was to undersell the big shots, and she was a merciless negotiator. 

To Warren Buffett, Rose embodied the unwavering courage that makes a winner out of an underdog.

Warren Buffett's 10 Ways to Get Rich - #8

#8. Know When To Quit: 

Once, when Warren Buffett was a teen, he went to the racetrack. He bet on a race and lost. To recoup his funds, he bet on another race. He lost again, leaving him with close to nothing. 

He felt sick -- he had squandered nearly a week's earnings. 

Warren Buffett never repeated that mistake. Know when to walk away from a loss, and don't let anxiety fool you into trying again.

Warren Buffett's 10 Ways to Get Rich - #9

#9. Assess The Risk: 

In 1995, the employer of Warren Buffett's son, Howie, was accused by the FBI of price-fixing. 

Warren Buffett advised Howie to imagine the worst-and-bast-case scenarios if he stayed with the company. 

His son quickly realized that the risks of staying far outweighed any potential gains, and he quit the next day. 

Asking yourself "and then what?" can help you see all of the possible consequences when you're struggling to make a decision -- and can guide you to the smartest choice.

Warren Buffett's 10 Ways to Get Rich - #10

#10. Know What Success Really Means: 

Despite his wealth, Warren Buffett does not measure success by dollars. In 2006, he pledged to give away almost his entire fortune to charities, primarily the Bill and Melinda Gates Foundation. 

He's adamant about not funding monuments to himself -- no Warren Buffett buildings or halls. 

"I know people who have a lot of money," he says, "and they get testimonial dinners and hospital wings named after them. But the truth is that nobody in the world loves them. 

When you get to my age, you'll measure your success in life by how many of the people you want to have love you, actually do love you. That's the ultimate test of how you've lived your life."