Dear Entrepreneur, Here Are 15 Things You Should Learn From Warren Buffett

By Getrude Mathayo / Published May 31, 2021 | 11:10 am

KEY POINTS

Success comes when you do what you love. Warren Buffet lives by this rule and urges us all to live by it too. When you do what you love and are passionate about it, he says, you will never work a day in your life.

Known as the “Oracle of Omaha,” Warren Buffett is one of the most successful investors of all time. Buffett runs Berkshire Hathaway, which owns more than 60 companies, including insurer Geico, battery maker Duracell and restaurant chain Dairy Queen.

With an estimated net worth of $72 Billion, Warren Buffett is one of the most successful, wealthiest businessmen and investors of all time.

There is no doubt that we can all learn more than a few things about doing business and making wealth from this remarkable billionaire, who’s been acquiring, starting, and growing businesses for longer than many of us have been alive.

Buffett generously shares lessons he is learned along the way through his extensive writings and talks, and by the way he leads his life.

Do work that you love.

Do not “thumb suck.”

Warren Buffett prides himself in making swift, well-informed decisions and acting on them just as fast. He deems any unnecessary dilly-dallying as “thumb sucking.” Do your research thoroughly, well in advance. Gather all the necessary information and act decisively. Say “No” if you must.

Invest in yourself

Perhaps the greatest thing that could be gained from Warren Buffett’s life is to invest in yourself. He speaks about it often, but he knew when he was younger that he needed good speaking skills to convince investors to invest in his partnerships.

Protect your reputation

Buffett’s quote “It takes 20 years to build a reputation, and five minutes to ruin it” is something that is not often observed these days. In business or life in general, your integrity and reputation with others will determine how far you go, and what circles of influence you get into.

Spell out the specifics of a deal beforehand

Even when you are dealing with friends and relatives, have all the specifics of the deal spelled out beforehand, including your monetary benefits. Your bargaining leverage is always greatest before you begin a job, that is when you have something to offer that the other party wants.

Hone your speaking skills

Recognizing that it would be necessary to achieve his goals, he enrolled in a renowned course taught by Dale Carnegie. Today, he repeatedly tells young entrepreneurs that the ability to communicate effectively is essential to success.

Assess the risk involved

Think about the worst and best possible scenarios and promptly make the most rational, progressive decision. Assessing risks carefully helps you see where you are struggling and can guide you to make smarter decisions.

Be consistent and patient.

The long and rocky road to success holds many valuable lessons and makes victory that much sweeter. So, be patient and keep pressing on. Do not obsess over quick results and instant gratification. Success does not come overnight.

Exercise vigilance over every expense and spending.

Warren Buffett is well-known for being frugal and encouraging others to do so. Being frugal and conservative with your spending helps you avoid waste. And when you avoid waste, you make your money work for you and save enough to invest for the future.

Limit your borrowing and what you owe others

Warren Buffet has never borrowed excessively, even when he was starting out in business. He says, “Nothing sedates rationality like large doses of effortless money.” He has always negotiated with creditors to pay what he can, and when he is debt-free, saved his money to invest

Reinvest your profits.

Judge yourself by your own standards. Do not base your decisions, successes or even happiness on what others say or do. Buffet notes: “You don’t have to swing at everything, you can wait for your pitch. The problem when you’re a money manager is that your fans keep yelling, ‘Swing, you bum!’”

Know when to quit.

Warren Buffet makes mistakes just like any one of us, but he learns from his mistakes and does not repeat them. Know when to walk away from a loss. And remember in businesses and in people, better quality businesses are more likely to grow and compound cash flow; low-quality businesses often erode.

Keep it simple

Invests in businesses that have solid financials, good management, and a strong competitive advantage. Overall, the company owns businesses with services that are always in need.

Only work with people you trust

Berkshire Hathaway takes a largely hands-off approach to manage its companies. But it does vet its business associates carefully, looking for good honest people with talent.

Make sure you are happy

Buffett has said many times that he loves what he does. It is what allows him to still wake up every day and go to work when he is pushing 90 years old. The lesson here is so important. There is no point in going through life unhappy. When you listen to Buffett speak, it is not just about the money. He is completely in love with what he does.