This week Forbes Magazine published The Forbes 400: The Richest People in America. If you are not familiar with the Forbes 400 is a list, it is a list of the 400 wealthiest people in America. This year, Warren Buffett, is number two on the list, and the year’s biggest dollar gainer - he added $12.5 billion to his fortune last year.
I don’t know about you, but I can’t imagine having $12.5 billion, let alone earning that much in one year. So, how did Warren Buffett become so wealthy and what does that have to do with us?
Well, since childhood, Warren’s only goal been to accumulate as much wealth as possible. He doesn’t seem to care about what his money can buy, he just loves the accumulation. Wealth accumulation is his passion and his purpose in life, he has been very successful at it.
While I don’t advocate making the accumulation of wealth your goal, I do believe that we can apply 7 of Warren Buffett’s principles to help us achieve our purpose in life:
Value Your Time
No matter how much money you have, you can’t buy more time. There are only 24 hours in a day, and Warren is well aware of this. He carefully manages his calendar to avoid useless meetings, but always has time for things that he values. Value your time and use it wisely.
Use Your Platform
Warren has been willing to speak frankly and criticize things that he doesn’t agree with. He’s not afraid to take positions, even if they run counter to his self-interest. Use your platform to make a difference in the world.
Protect Your Reputation
Warren is quoted as saying, “It takes 20 years to build a reputation and five minutes to ruin it.” If you think about your reputation, you’ll do things differently.
Know Your Strengths
Warren’s strength is in buying undervalued companies, and he only invests in businesses that he understands. He knows what he is good at and focuses on it. Focus on your strengths.
Hire “A” Players
Steve Jobs had a saying that, “A players hire A players; B players hire C players; and C players hire D players.” Buffett has said, “It’s better to hang out with people better than you.” If you associate with people who are better than you are, you will always be improving.
Money Isn’t Everything
Despite being the second richest man in the world, Buffett still lives in the same house he purchased more than forty years ago. He has given away billions, and has pledged to give most of his billions to charity. For him, it’s not about the money and it shouldn’t be for you either. Money isn’t everything.
Failure Isn’t Final
Failure is an event, not a lifestyle. Many of the worlds most successful people have failed along the way. Thomas Edison is famous for saying, “Many of life’s failures are people who did not realize how close they were to success when they gave up.” Berkshire Hathaway was a failing textile company when Buffett took over. He recreated Berkshire Hathaway to become one of the most valuable companies in the world. Don’t let today’s failures get in the way of tomorrow’s successes.
What is one thing from the above list that you can you apply to your life today? Comment here.