"Buy a business that's so good, any idiot can run it, because sooner or later, one will"
These ideas came from Warren Buffett's true autobiography, written by Alice Schroeder, The Snowball: Warren Buffet and the Business of Life. If you know me, you are aware that I have the highest level of respect for Warren Buffett; as a businessman, investor and a person. His values and integrity are unlike no other in the business world and I consider myself to be blessed to have lived in a time where I could be a witness to someone of this status and character living the way he does. He is truly an inspiration.
Let's take a look at the 10 ways that are stated in his book.
2. Be willing to be different - be your own person and do not follow the crowd.
3. Never suck your thumb - do not wait for a lower price when a great opportunity is staring at you. Do not try to predict the market.
4. Spell out the deal before you start - know exactly what your expectations are before making an investment; one should be able to summarize any good investment in one paragraph.
5. Watch small expenses - be careful of commissions and fees.
6. Limit what you borrow - do not borrow on margin.
7. Be persistent - continue to learn and have faith in your decisions.
8. Know when to quit - do not become attached to your stocks; stocks do not know that you own them. Sell if business fundamentals have changed.
9. Assess the risks - know your risk tolerance.
10. Know what success really means - success is not about making money; know what it means to you.
I highly recommend this book and it should be read by all young investors and businessmen out there.
Also, if you are interested in understanding Warren Buffett's investment philosophy more, check out my other blog, Buffettucation
"I know people who have a lot of money," he says, "and they get testimonial dinners and hospital wings named after them. But the truth is that nobody in the world loves them. When you get to my age, you'll measure your success in life by how many of the people you want to have love you actually do love you. That's the ultimate test of how you've lived your life."