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The 10 Rules That Made Warren Buffett A Billionaire

TedTed
in Fund Discussions
FYI: Warren Buffett may be worth tens of billions, but he still lives simply, and his strategies for investing and amassing wealth aren't too complicated either.

But if it's so easy, you ask, why aren't more people as freaking rich as Buffett is? Because his approach takes the kind of discipline, patience and instinct that many either don't have or are unwilling to develop.

Here are 10 rules that have helped the Oracle of Omaha find and sustain
Regards,
Ted

1. It starts with good communication
2. When investing, innovate — don't follow
3. Always be willing to learn new things
4. Live frugally
5. Look forward, not to the past
6. Never invest borrowed money
7. Dividends are key to long-term growth
8. Think loooooooong term
9. Know when to fold 'em
10. Remember, anything is possible

Comments

  • MJG
    edited October 2019
    Hi Ted,

    Thanks for the nice rules summary. However, it’s not the rules themselves that generated the superior performance, but as you also identified, it is his patience and discipline. Buffett simply stays the course. His long term persistence pays off big time. Those are the necessary key elements in a winner’s strategy.

    Before reading your submittal, I was only familiar with an even simpler 2 rule famous summary of Buffett’s investment rules. He is often quoted as saying “ "Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.". Now that’s solid advice, but a bit difficult to put into practice.

    Luck is more important then any and all rule books.

    I really like this famous quote from a Bob Brown: “ Behind every successful man there's a lot of unsuccessful years,”. Indeed, persistence is a needed quality.

    Best Wishes
  • LewisBraham
    And neither a borrower nor lender be and always remember to wear clean underwear when you’re driving above the speed limit. It wasn’t just these platitudes that made him a billionaire. It was also timing, luck and a mind able to discern how to exploit that luck. But the truth is Buffett is a product of the time and place he was born in. When he started investing far fewer people were doing it for a living than today, meaning there were many more inefficiencies for a value oriented numbers-cruncher to exploit. I doubt he would have had the same results if he was starting his finance career today.
  • carew388carew388
    Peter Lynch came to mind while reading your comment @LewisBraham
  • Gary
    Got to have a level head!!

    “99% of the troubles that threaten our civilization come from too optimistic accounting.” – Charlie Munger
  • LewisBraham
    I won't say the name for privacy reasons, but I know some graduates from a very prestigious school and what is interesting is many of those grads from earlier generations went to work on Wall Street, but more recently they were going to work in Silicon Valley. The thing is the puck to financial wealth--if that is what one most seeks in life as there can be far more rewarding alternatives--is always moving. I doubt there will be another Warren Buffett in stocks. Times have changed. America has changed. I firmly believe the next billionaires will find their fortunes outside of Wall Street--in biotech perhaps, alternative energy, or puppet dictatorships, war profiteering and massive corruption.
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