The best investment you can make is investing in yourself. There is nothing more profitable than spending your means on ways to improve yourself. Remember that the best investment is the one that you make on yourself which you can never go wrong with.
The much-acclaimed American business magnate and philanthropist Warren Buffett who is also one of the most successful stock market investors constantly insists on improving oneself by constant reading and practice of the trades learned from the books and through experience. Buffett consistently ranks high on Forbes’ List with a current net worth of $ 125 billion. When prodded about his journey to building wealth in such a persistent fashion, he shares how following certain principles not only ensured his way forward in life but also helped him retain the top slot that he had aimed for. Some of them are:
Live below your means
Do not make the mistake of prioritizing your spending before deciding to save. In fact, spend what is left after saving. Buffett bought his house for $ 31,500 in 1958 and still lives there today.
Lesson learned: Choose to live frugally and reap the rewards.
Invest wisely over a long period
You cannot invest today and dream to become rich overnight. Besides, you must invest your money after considerable research and understanding of your investments. Risk comes from not knowing what you are doing. Choose companies with an innovative edge to them. Ideas are fruitful with companies intent on implementing innovative techniques to grow and earn profits.
Lesson learned: Invest in innovation.
Never forget your roots
Remember people who had shown faith in you. In high school, Buffett landed a job delivering papers for The Washington Post. They are now one of the large stakeholders in his company.
Lesson learned: Support those who put faith in you.
Keep your circle small and strong
Honesty is too valuable for everyone to have. Do not expect it from cheap people. If you are aiming at the stars, hang out with people who have the confidence to reach the moon. Prefer the company of those who are better at than what you do.
Lesson learned: It is always better to be lifted than pushed.
Protect your reputation
It takes at least two decades to build a reputation and barely five minutes to ruin it.
Lesson learned: Don’t sell your soul for a quick buck.
Minimize unnecessary meetings
This principle is apt to most companies today that call for unnecessary meetings to showcase their corporate side. Remember that the rich invest in time while the poor invest in money. Every year, Buffett sends a letter that sets goals and celebrates a milestone. Freeing time for people to do what they do.
Lesson learned: Cut out the nonsensical. Save time to spend on something that matters.
Never give up
If you want your business to survive for the next 100 years, you have got to make it work.
Berkshire Hathaway was a failing textiles firm. Buffett’s leadership turned it into a multinational conglomerate.
Lesson learned: Ignore the present; focus ahead.
It does not matter what others say or which businesses they follow. Never allow market hype to influence your investment decisions. Failure comes from; ego, greed, envy, fear and imitation. Resist falling to these if you want to escape failure. There is no way to know how a particular company would perform five years from now. So, cut the noise and invest as per your research and understanding of the business.
Lesson learned: Find investment in high-profit margins, instead of current demand.
Do work that brings you joy
Do something that excites you. Your work will not feel like labour when you do what you enjoy the most. Realize your passion and continue working on it. Life is too short to harbour regrets about what we could not do and that which we had to let go of.
Lesson learned: Do not ignore your passions.