Learn from Warren Buffet
There was a one-hour interview on CNBC with Warren Buffet, the second richest man who has donated $31 billion to charity. Here are some very interesting aspects of his life:
1. He bought his first share at age 11 and he now regrets that he started too late!
2. He bought a small farm at age 14 with savings from delivering newspapers.
3. He still lives in the same small 3-bedroom house in mid-town Omaha, that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence.
4. He drives his own car everywhere and does not have a driver or security people around him.
5. He never travels by private jet, although he owns the world's largest private jet company.
6. His company, Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year. He never holds meetings or calls them on a regular basis. He has given his CEO's only two rules.
Rule number 1: do not lose any of your share holder's money.
Rule number 2: Do not forget rule number 1.
7. He does not socialize with the high society crowd. His past time after he gets home is to make himself some pop corn and watch Television.
8. Bill Gates, the world's richest man met him for the first time only 5 years ago. Bill Gates did not think he had anything in common with Warren Buffet. So he had scheduled his meeting only for half hour. But when Gates met him, the meeting lasted for ten hours and Bill Gates became a devotee of Warren Buffet.
9. Warren Buffet does not carry a cell phone,nor has a computer on his desk.
Here are a few of his inspiring advices on investing and life.
A. Investing
What to invest?
- Invest in companies selling products that consumers are not concerned with price.
- Find companies with endless demand for their products.
- Don’t worry about what the stock market will do, focus on what the company will do.
- Risk comes from not knowing what you’re doing.
- Wide diversification is only required when investors do not understand what they are doing.
Look forward and be patient
- I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.
- If past history was all there was to the game, the richest people would be librarians.
- The investor of today does not profit from yesterday’s growth.
- With Stocks it is hard to know WHEN something will happen, but it is easy to know WHAT will happen.
When to invest?
- It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
- Price is what you pay. Value is what you get.
- We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
B. Life
- Leave your children enough money so they can do anything, but not enough that they don’t have to do anything.
- It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.
- It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.
- There seems to be some perverse human characteristic that likes to make easy things difficult.
- The smarter the journalists are, the better off society is. For to a degree, people read the press to inform themselves-and the better the teacher, the better the student body.
Advices to young people:
"Stay away from credit cards and invest in yourself and Remember:
- Money doesn't create man but it is the man who created money.
- Live your life as simple as you are.
- Don't do what others say, just listen them, but do what you feel good
- Don't go on brand name; just wear those things in which u feel comfortable.
- Don't waste your money on unnecessary things; just spend on them who really in need rather.
- After all it's your life then why give chance to others to rule our life.