Warren Buffet has made a fortune as an investor, but it is not just the money that he has that defines him. He has an outlook on life that we can all learn from, even if we aren’t on the same financial level as Mr. Buffett.
It is simplicity and a love for what he does that makes his life so rich.
Take a look at some of his thoughts on life and see how you can incorporate them into your own:
1. Pay attention to what you love – You might be surprised to learn that Warren lives a rather modest lifestyle. He could certainly afford a flashier home and car than what he has, but he simply chooses those things that he truly enjoys.
- When you focus on the things you don’t have, you lose sight of all the good things around you. For example, would you be more satisfied with a huge library of books you will never read or just a couple that you truly love and which you could read over and over again. Find what you love and blot out the rest.
2. Quality is always better than quantity. Warren Buffett made billions of dollars by being picky about what he was going to invest in. Rather than having a large portfolio, he simply chooses 20 or so stocks that he feels will serve him well. These are all quality stocks that will deliver more than a large selection of mediocre options.
- This way of thinking is perfectly represented in one of his more famous quotes: “Your financial wealth would be much greater if you could only make 20 investments in your lifetime. You would make sure they were great if you had only 20 chances.”
3. Follow your passion. You are more likely to be successful and happy in business if you are doing something that you love on a daily basis. Warren could have stopped investing years ago, but he has such a love for what he does that he really didn’t see the need to. It is why musicians continue to write and perform long after they have made it financially.
- If you hate what you are doing in your career right now, what plans do you have in place to change that? Rather than settling for second best, you need to try and figure out a way to follow your passion and make money from it.
4. Focus on what YOU are doing. Most of us are more than a little guilty of taking a peek over the neighbor’s fence to see what they are up to. Copying what others are doing with their life will steer you away from what makes you happy. Being an original and following your own path brings its own rewards.
- It’s pretty much human nature to look at others and also wonder what they think when they look at us. You can’t live an original life if you are constantly worried about other people impression of you. Get over it and get on with what you want.
5. Stick with what you do well. Warren Buffett has turned down the opportunity to invest in surefire high-tech investments, and all because he feels he does not have a good enough understanding of what they offer to make them a good investment for him. It’s hard to argue with that strategy when you see how well he has done by sticking to what he knows.
- This doesn’t mean that you should give up improving in areas where you are weak, but life is certainly easier and happier when you focus on what you do well.
You have probably reached this point believing that it’s easier for someone to talk about happiness when they have billions in the bank. Studies have shown, though, that you don’t get happier as your bank balance increases.
Those that fall into the category of the super-rich usually get that way by following the 5 things listed above. That said, they would probably be just as happy if they had followed those same steps and never amassed a fortune.