In this post I review five distilled bits of Warren Buffett advice for those seeking success. If it is value you seek, then it is value you will find by reading further.
If by some odd chance you’ve never heard of Warren Buffett, he is essentially the most successful investor EVER. He’s worth over $75 billion, has donated over $28.5 billion to charities, and is one of the richest people on the planet. So I would venture to say the guy probably has some pretty good advice about success in life.
Without further ado, here are five distilled bits of Warrant Buffett advice that seekers of success can benefit from immediately.
5 Distilled Bits of Warren Buffett Advice to Heed for Success
Warren Buffett Advice # 1 – Find Your Passion
In an interview with Fortune magazine, Warrant Buffett was asked how other people can tap dance to work the way he does. He provided the following answer as his response: “You Find Your Passion”.
Warren Buffett holds the opinion that the people who find their passion in life are lucky. The reason he believes people are lucky when they find their passion, is because people who love what they do, end up doing that activity they love quite well.
Warren Buffet extols passion as one of the best ways to find success. Why? Because he understands that we live in very competitive times.
In our competitive society, if you don’t love what you do, you automatically place yourself at a disadvantage in the labor market and the market place as well.
As such, Warren Buffett’s advice to students who are just coming out of college, is to take the job that he/she would take if they were independently wealthy. There is power in passion.
I would have to second Warren Buffet’s take on passion, because following this advice has been one of the best things I’ve ever done for my own personal success.
Okay, on to the next piece of advice.
Warren Buffett Advice #2 – Have a Competitive Advantage
Another distilled piece of advice from Warren Buffett is the importance of having a competitive advantage.
A competitive advantage is basically any condition that allows a person, company, or country, to provide a good or service at either a lower price or in a more desirable fashion for customers, than its competitors.
Buffet conveys how Capitalism entices competitors to want to “take your castle”. You castle being your business idea. As such, he advises that in order to succeed in Capitalism, we must ensure we have a castle with a moat around it.
In this case, a castle with a moat is a business or person that has a durable competitive advantage. And a competitive advantage can be anything from being a lower cost producer (Wal-Mart, China, etc..), or having more talent (Apple, Steven Spielberg) than the competition.
Warren Buffett Advice #3 – Become a Reading Machine
Warren Buffet was once asked what was most attributable to his success. He responded that his love of reading helps. Warren is an avid reader. He enjoys reading so much that he’s claims to reads for at least 5 to 6 hours a day.
So what does he read? Well, straight from his mouth, he reads at least five daily newspapers magazines, annual reports, and biographies on a daily basis.
If you are not a reader, well maybe it’s time you became one. Especially if it were to help you gain just an ounce of the financial success Warren Buffett has had.
Warren Buffett Advice #4 – Model Success
In a speech to Florida University, Warren Buffet sent a powerful message to students about how we can acquire the positive qualities that we admire in other people. And to do this, all we need to do is model the qualities of the successful.
He tells a story of his mentor, Ben Graham during his speech. He reveals how Ben Graham wanted to be admired just like the people he looked up to. As such, he decided to model those people, and eventually acquired the exact same qualities they had, lending to much of his success.
To heed this bit of Warren Buffett advice, you can start here. This is an excellent resource to help you model the investment qualities that has brought Warren Buffett much of his success.
Warren Buffett Advice #5 – Avoid Complacency
At an annual meeting of Coca Cola shareowners, Warren Buffett and the CEO of Coca Cola chatted about the company, business, investing, and success in general.
During that discussion, Warren Buffett suggested that he likes to study failure. He made this statement to point out the important of being a student of history. Warren states that he pays close attention to what causes businesses to go bad.
The reason he does this? So he can avoid investing in companies that display traits that have led to the eventual failing of other businesses.
Buffett’s advice to avoid such failure, is for people and businesses to not lose their restlessness. In other words, he suggests that we do not rest on our laurels if we want to continue to prosper. We must avoid complacency at all costs.
To thrive, organizations and people need to strive to compete the same way they did when they were first starting out. Just because an organization has risen to certain level of success, does not mean they can take their foot off of the proverbial gas pedal.
Our past successes do not guarantee our future achievements.
In short, the best advice you are going to find about success in life is this; follow Warren Buffett’s advice on passion, find your competitive advantage, become a reader, model the successful, and avoid complacency.
Success leaves clues. If we pay close attention, we can learn from the individuals that have risen to great heights. Warren Buffett has accomplished quite a bit in his life time. He is a Titan of the financial world, so when Warren Buffet gives advice, I listen.
Do you have any Warren Buffett advice of your own to add to this list?