Think how Warren Buffett

Think how Warren Buffett

Warren Buffet is not a psychic, however he very not bad predicts future. This ability allowed it to do reasonable investments and to deserve the nickname the oracle from Omaha … and also to earn 50 billion dollars. Buffet never hesitated shares the strategy. He is known that once a year notifies shareholders on the reasons concerning the stock market. Catch the train of thought of Buffet by means of these lessons.

Lesson 1. Choose the correct way

Do you manage what. There is a whole bunch of things about which I do not know. I steer clear of this heap - Buffett says. Everyone has talents, the calling. Buffett understood that he is successful in clever investments, and since then is engaged in them, saying that it – the sphere of his competence. Arrive also. Find the strengths and develop them.

Find and do what you like to do. Warren Buffett is not tired of the work, it brings him pleasure. Certainly, you heard it many times, but the best way to achieve success simply did not think up. Without passion for that, what are you doing, you will have no energy. Without energy you will have nothing.

Know when to leave the ship. It is more reasonable to spend forces for change of the vessel, than for a zadelyvaniye of leakages. If you do not manage business, kind of you did not try, perhaps, you chose incorrect model of actions. Instead of spending all energy for holding afloat the sinking ship, it is better to look for new, more perfect model.

Lesson 2. Simplify to yourself work

In human nature – everything to complicate it. Whether you noticed that you sometimes spend hours for the project which could be finished in 30 minutes? You are not reconciled with inefficient habits and models of actions. Find a way to simplify the work. Break fruit that low hang. If apple hangs directly over the head at arm's length – there is no sense to drag a step-ladder. Apply the same strategy to investment. Buffett does not do risky investments, he simply does not need it. Avoid unnecessary risks and the doubtful enterprises.

More simply – means better

At business schools learn that the difficult behavior is better simple. But the simple behavior – is more effective - Warren Buffett says. It is possible to study dozens of pages of market analytics and forty hours a week to be occupied with the auction. If you are on friendly terms with complex systems of data – perhaps, you will manage to take some benefit. But you can arrive as the Berkshire Hathaway company arrives. It makes purchases of shares, being based only on one indicator: own cost of the companies. Buffett takes shares of the companies having potential to growth.

People love difficult business formulas and often forget that success in business is simple. There are only two rules. Rule one: never lose money. Rule two: never violate rule one.

Lesson 3. Character – it is good for business

Do not swim stark naked. Only when the tidal wave will depart from the coast it will become visible who swam stark naked - says Warren Buffett. Before the global economic crisis in 2008 the financial institutions did risky investments, doing a good mine at a bad game. It worked some time. But the point is that it cannot proceed eternally. And when there occurs recession, significant is only a price of these investments. Do business purely and providently that to you was not about what to worry when water pomelchat.

Good people do good business. With the bad person not to conclude the good bargain - Buffett is sure. When Berkshire Hathaway buys the company, Buffett personally concludes the bargain, sealing it with handshake. He prefers to be personally familiar with managing directors of the companies, he is interested in to buy from good people. The personal relations have considerable value for Buffett. To be a good guy is prospect and from this it is possible to derive benefit. So be good and deal with same as you.

Lesson 4. Think of the future

Be patient. No matter as far as you are talented or diligent in work. Some things require time. Even if from you nine women will become pregnant, in a month the child will not be born. Short-term planning can bring only short-term success. Our favourite term of a continence of actions – eternity - Buffett says. When Berkshire Hathaway takes shares of the company, she expects to hold them not less than ten years before selling, and sometimes and more. Such terms force to focus on what is really important – company management and its business model. Long-term thinking - here successful strategy for the businessman and the investor. Life – a long-term game so begin to think where there will be your business in ten years.

Care for the reputation. To earn good reputation twenty years are necessary, and in only five minutes it can be lost. If to think from this position, a lot of things can begin to be done in a different way. The capitals come and leave, and bad reputation – as not removed spot. Only one wrong step will be enough forever to do harm to your reputation. It is a big problem, nobody will want to work with the company which does not trust. So do not dare to stumble. Cultivate quality in work.

Leave heritage

Today someone sits under the shade because once planted a tree. What good is in creation of successful business? Not money and not freedom, and the fact that you made a lot of benefit for many people. Good business after you will bring for a long time to people benefit. Buffett's heritage is not limited to business. As Bill Gates or Mark Tsukenberg, he gives a half of the state on charity.

Lesson 5. Create outlook of welfare

Be adjusted on success. I always knew that I will become the rich. I for a minute did not doubt it. Buffett said that full confidence in something can pull up trees. To believe in success is a first step to it.

Turn unnecessary a deaf ear. What was written by slowcoaches, let slowcoaches also read. The you are more successful – the more at you than envious persons. You cannot control the words of people, but you can ignore their negative directed against you.

You are not perfect. Reconcile to it

I made the mass of mistakes. Also I will make as much again. It is a part of a game. You cannot be perfect. But you can aspire to the best. To demand perfection from itself – means to demand too much. You are people. People make mistakes. Even the genius of investment like Warren Buffett cannot win and be infallible everywhere and always. However he reconciled to it and is not engaged in self-flagellation when he does not receive what he hoped for. To demand from itself perfection – exhausts. Be satisfied that you do everything that you can.

Be happy

I am not upset. I just accept things such what they are. Even if tomorrow all would go bankrupt, Buffett all the same would smile. Happiness not in green strips on schedules, and in ineradicable optimism and enthusiasm. There is no more valuable present for itself, than personal happiness. But if you are not happy right now – any money or progress will not make you happy.

Be grateful for what you have, you love the business and accept things such what they are. Happiness will be put.

Author: «MirrorInfo» Dream Team