So, you want to be the next Warren Buffet or close to? You can’t, unless you first understand the secret source of his vast wealth. Want to know the success secrets of Warren Buffet, the super successful investors of the world? They are here. In this post, and luckily for you, they are easy.
Warren Buffet is the foremost man when it comes to the world of investing. Warren Buffet was born in 1930 in Omaha, Nebraska and has become probably the world’s most successful investor. He is the son of a stockbroker and Congressman, and of course everyone wants to learn about his investment secrets.
To come to the state of favorable circumstance in any endeavor, one thing you must not forget is hard work. It is the key ingredient you need to be flushed with succeeding in accordance with your heart desire. Exert effort for a successful result.
In this post, I will be taking my time to share with you some secret success of Warren Buffet and how you can follow suit to achieve your goal in life.
1. Start Early
One success secret that helped Warren Buffet to achieve this present status was because he started early. He didn’t hesitate. He started pursuing his passion for business so early that he bought his first stock in Coca-Cola at the age of 11 from the proceed he got from selling Coca-Cola to friends, neighbors and family members.
If you must succeed in this present fast moving economy, you must act early. It is not only enough to plan; you have to take action early enough to avoid regretting later on in life.
2. Focus on Income Generation and Reinvestment
As an oracle in investing, Warren don’t just invest in any company. He invests in businesses that can be so wonderful that his income is guaranteed whether he is watching the stocks or not.
It is a normal investment advice from financial advisor to always reinvest your dividend from your investment and that is what Warren practice. It is one secret success of his wealth.
You may say but why dividend. It is very simple. Warren Buffet do collect some of his dividend from his stock and invest them in other solid profitable investment while he still keeps the first stock.
This is one thing you as an entrepreneur need to start learning. You should instruct your financial advisor to reinvest your dividend automatically. When you have discovered that your overall investment is large enough to sell some stock and invest in other profitable businesses, you can order to either sell some of your stock or cash out the dividend on the stocks.
3. Trusting in Teacher
If you have read the biography of Warren Buffet, you must have read that he learnt all what made him great today from his teacher, “Benjamin Graham” the greatest teacher in the history of finance who was a college professor at the Columbia School of Business.
He worked under Graham, learning from him as a mentor and a teacher. Today, you can see the result that he has gotten. You have to find someone to learn from in your field if you want to achieve success in your career.
No man is an island, you should have someone that can assist in terms of helping in your pursuit. Let me leave you with this question, ‘who is your teacher?’
4. Innovate rather than Follow
Another success secret of Warren Buffet is that he doesn’t just follow what everyone is doing.
Instead, he innovates. Buffet might get an idea from a book he reads about investing or a seminar he attended about investing, but when buying stocks, he takes his own decision and not exactly what he get from books or seminars or wall street.
Berkshire Hathaway is a result of his innovation. Many companies have tried to imitate the company but no one has the business capital to outperform the S&P 500 in four or every five years.
It is normal that Warren think opposite of the crowd. When people are selling, Warren is buying. You also have to learn how to think outside the crowd. Learn to follow your own instinct and not the saying of the majority, this is one way to achieve success in your path.
Instruct the investment manager to reinvest your dividend and don’t touch it is large enough to part it and invest in another profitable company. Conduct your research on companies before you plug your money into it.
So, how can you use these success secrets of Warren Buffet and create your own success story? Consider starting early by investing your money in a solid high-paying dividend investment and not time the market.