If you’re reading this blog post you are probably familiar with Warren Buffett. And you also probably know that I am a Warren Buffett fan boy.
His success in creating wealth is legendary…
He has a track record that spans multiple decades and has outperformed almost all money managers year after year. He has some simple principles when it comes to wealth, which he has never been afraid to share. Good for us, right?
Warren Buffett is the reason for my passion in wealth creation. It was one of his books that got me interested in markets and the concept of passive income as a way to create wealth.
I have spent many hours reading Warren Buffett books, and many of his annual market commentaries. It is his passion that invoked a fire in my belly to learn more and do more to create wealth.
I owe a lot to Warren Buffett and the knowledge that he willingly shares of his methods. The fact is he is a legend, and when he speaks the markets and everyone involved in them listens.
So this week I thought it would be good to have a look at 10 of his top tips and show how you can apply them to your wealth creation goals.
Here we go…
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Someone is sitting in the shade today because someone planted a tree a long time ago.
I have seen several interpretations of this quote but the lesson I want you to see in these words is that investing is something that results in big outcomes, they just take some time to mature.
This advice is often repeated in the quote about the best time to plant a tree…
The best time is 50 years ago and the next best is today!
Don’t delay any longer, because the benefits in time will be massive.
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Be fearful when others are greedy, and greedy when others are fearful.
Markets are known to be driven by fear and greed. It’s actually something they encourage to generate fees for themselves.
The problem is that too many people join the game when everything around them is saying how good times are and how great the returns that are being made.
Greed kicks in and people start making irrational financial decisions, which leads to the inevitable crash…
When the majority of people are fearful in markets, the smart money comes in and buys at cheap prices.
After the crash in share markets in 2008 Warren Buffett put $25 billion into some blue chip investments, and six years later had made $10 billion on those investments. The phenomenom occurred after the recent pandemic crash. Markets dropped dramatically and the professionals came in and boom, the market rose very quickly and profits were made easily, all off other peoples panic.
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If you’re in the luckiest 1% of humanity, you owe it to the rest of humanity to think about the other 99%.
The majority of Buffett’s fortune has not been left to his children but to charity…
My vision, my WHY, is for The Investor’s Way to teach 1,000,000 people how to take control of their money and achieve financial freedom. I don’t have to teach each one, I know the power of compunding in knowledge as well. 🙂
Along this journey I expect to be able to make significant contributions to the charity of my choice, which is related to cancer research.
It is your obligation to first make sure you do not need charity, and then to think about how you can contribute to those less fortunate than you.
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You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with the 130 IQ.
This is great news for everyone…
The simple fact is that investing for wealth is not rocket science. I often say it is simple, but not easy.
Sure, there are techniques to learn…
But it’s a matter of taking action, which includes learning some basic skills and then expanding on them as you progress.
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It’s better to hang out with people better than you. Pick out associates whose behaviour is better than yours and you will drift in that direction.
Warren Buffett is famous for hounding the great Benjamin Graham for a job, he even offered to work for him for FREE…
He has always been adamant about surrounding himself with the best of the best.
The lesson of this quote is simple, if you are the smartest person in the room that is when you should be worried.
Here is another example of this tip, the rule of five, which I have mentioned many times in this blog.
This is a great reminder of the importance of having mentors or coaches, whatever word you want to use. Surround yourself with people who can help you.
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I always knew I was going to be rich. I don’t think I ever doubted it for a minute.
His high school year book predicted he would be a future stock broker…
He knew what he wanted and he went after it.
The lesson here is that success comes to those who identify what they want and take action to make it happen. You’ve heard that from me many times.
Understand your WHY, believe in it and take massive action.
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If you buy things you do not need, soon you will have to sell things you need.
This is a lesson from Benjamin Franklin also.
Modern society breeds the need for instant gratification, which results in buying too many things that you don’t need or really want, at the expense of those that you need…
Spend wisely to ensure there is money being directed to your wealth goals.
The simplest way to solve this problem is to have a plan for your money. Hit me up if you want to learn how to implement our simple money planner.
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No matter how great the talents or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant.
This quote is excellent at clarifying the need for patience and resilience…
As with a pregnancy, wealth creation takes time.
During this time, there will be moments of great rewards and other moments where results are hard to achieve.
Developing patience and resilience will prepare you for these times and give you the strength of character to succeed.
As with a pregnancy, the rewards are worth the wait.
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Do not save what is left after spending but spend what is left after saving.
Of all the advice I have ever received, read, or written about in wealth creation, this is the most important and yet least practiced.
To change you wealth dramatically, the simplest coaching I could give you is this tip.
Reverse the manner in which you allocate your money and you will have a drastic change in fortune…
Choose to invest first. Create a plan for your money where you identify your monthly surplus and put it to work, every single month.
Practice this for a few months and soon you will be on your way.
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Always invest for the long term.
Wealth creation is a long term game. Not just to get results, but in your expectations of results as well.
I see too many people chasing quick returns and ending up disappointed…
When making your wealth decisions, do it with the long term in mind, NOT tomorrow or next week.
Conclusion
So there you have it, 10 top wealth tips from Warren Buffett. The guidance you can take from these tips is worth thousands of dollars in personal coaching time.
Don’t let the simplicity of the information fool you.
Following these principles will save you lots of time and money, and make you many thousands or millions over time.
Warren Buffett didn’t become wealthy by accident, or by luck. He made choices that were based on sound principles, such as these tips, and applied them consistently.
You too can have success by applying these tips.
Let me know below in the comment box your favourite tip, or how you are going to use this information. It would be great to know your thoughts.
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