Warren Buffett lesson, how to think like warren Buffett?

Warren Buffet is not a psychic but he does have a knack for predicting the future.

His eye for savvy investments has earned him the nickname of “Oracle of Omaha” along with a net worth of US$50 billion.

Buffet has never been shy about sharing his common sense business strategies: he’s famous for writing shareholders ones a year to explain his thinking. In the process, he’s left the world with a wealth of business knowledge.

Get inside the mind of a legendary investor with the lesson and quotes below.

This is the most important thing

Rule No.1: “Never lose money”

Rule No.2: don’t forget rule No.1”

The company is more important than price:

It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

Don’t swing at everything:

 The stock market is a no called strike game you don’t have to swing at everything you can wait for your pitch. The problem when you are a money manager is that your fans keep yelling “Swing, you bum”

Choose a Good Path:

Do what you are Good At

      “There’s a whole bunch of things I don’t know a thing about. I just away from those.”

We all have our talents. For his part, Buffet realized long ago that he was very good when it came to investment. Even since then, the focused on that, staying within what he calls his “circle of competence”

Find and Follow Your Passion:

Do what you are Passionate about. If you do this, there will be few people competing running faster you”

When you complete a task that you are passionate about you have energy than when you started.

As warren said, “Without passion, you don’t have energy, without energy you have nothing”

Always Do what you like to do:

Warren doesn’t get tired of his job, because he actually enjoys what he’s doing. He has said, “I get to do what I like to do every single day of the year,” and that at Berkshire-Hathaway they enjoy the process far more than proceeds.

On Wall Street advice:

Wall street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway”

No need to be a genius:

You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160IQ beats the guy with 130 IQ.”

Make things easy on yourself:

“There seems to be some perverse human characteristic that likes to make easy thing difficult.”

People often make work more challenging than it needs to be. Have you ever spent hours and hours working on a project that you know you could have completed in thirty minutes?

Pick Low-Hanging Fruit:

“   “I don’t look to jump over 7-foot bars: I look around for 1 foot bars that I can step over”

Bad things are not obvious when times are good:

“ “After all, you only find out who is swimming naked when the tide goes out.”

Simple is Better:

“     “The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.”

The day traders who buy stocks are making their job every difficult. The study pages of market analysis and work 40 hours a week just trading.

Berkshire-Hathaway makes its stock purchase based on just one thing: the intrinsic value of the company. Buffet buys stocks in companies that have good fundamentals and a tracks record of growth. Pretty straightforward.

Time is good only for some:

“Time is the friend of the wonderful business the enemy of the mediocre.”

Some other important Lesson:

·         I buy expensive suits. They just look cheap on me.

·         Price is what you pay. Value is what you get.

·         Risk comes from not knowing what you are doing.

·         It takes 20 years to build a reputation and five minutes to ruin it, If you think about that you ‘ll do things differently.

·         Chains of habits are too light to be felt until they are too heavy to be broken.

·         When you combine ignorance and leverage you get  some pretty interesting results.