Famous business leader and investor Warren Buffett is currently one of the richest people in the world! As the CEO and largest shareholder of Berkshire Hathaway, Buffett is regarded as the most successful investor of the 20th century and is widely known as the ‘Wizard of Omaha’, a title which he earned for his incredible talent and acumen in investments.
So, how did he do it? How was he able to become successful and make tons of money? Check out the 10 things that helped Warren Buffett become a billionaire so you too can make the most of opportunities that come your way and ultimately get rich:
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1. Save money
The best advice to becoming a billionaire is saving money. The secret to Buffett’s immense wealth was essentially his ability to handle his money wisely without spending any on himself or his family. He managed to control small expenses effectively and invested in businesses that didn’t have many costs.
2. Manage your emotions
If you can’t manage your emotions, you can’t manage your money. Having said that, you can’t let your feelings control you and make decisions when you are not at your best as this can seriously hurt your performance and profits.
3. Trust your instincts
Buffett gives an answer on the spot without needing to think about it too much. When a business offer comes his way, he pretty much relies on his own instincts which tell him which is the best possible way to go forward. In that sense, he is rather quick on decision making and doesn’t waste time on sitting and overanalysing.
4. Reinvest in your profits
Investing in something small can be an excellent way of making more money by putting the money you earned initially to a good cause. Buffett knew that in order to increase his profits he needed to reinvest. He bought pinball machines and put each one at a different shop, and the money he earned from these he used to start another business.
5. Take risks
If Buffett didn’t take any risks he wouldn’t have become the billionaire he is now. What you can learn from his story is that taking risks can help you succeed as long as you assess potential benefits and costs effectively. When faced with a difficult decision, try to think about how this is going to help you in the future and weigh up your options.
6. Find a great mentor
Buffett had a great mentor that helped him along the way to success. Ben Graham helped Buffett learn more about finance and investments. Graham was generous in sharing his investment ideas with him and passing on his knowledge to other average investors.
7. Do things differently
The best way to stand out from the crowd is to do things differently. Warren was successful by going against the flow and making decisions for himself. This means he didn’t pay much attention to what everyone else was saying or doing; instead he followed his ‘inner scorecard’.
8. Get to know the deal first
Before you commit yourself to something, get to learn what is expected from you as well as what you expect to get from the other party. Through his own experience, Buffett learned that if you are about to make a business deal with someone, you first need to determine all the details in advance so that you are on the right page.
9. Know when to quit
Part of doing business effectively, is knowing when it is a good time to quit. Buffett had to learn this the hard way when in his teens he bet on a racetrack twice in an attempt to earn more money, but lost almost all of his earnings. Knowing when it is time to walk away from a loss when odds are not in your favour is vital.
10. Give something back
Buffett’s goal wasn’t to become rich. As a philanthropist, he’d rather measure success by the number of people he had in his life who loved him and to whom he was able to give that love back in return.
If you want to become as wealthy as billionaire Warren Buffett, make sure you follow these 10 tips to help you climb the ladder to success!
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What do you think made Warren Buffett a billionaire? Feel free to share your thoughts in the comments section below…