How to Be Like Warren Buffet

Warren Buffet just bought BNSF Railroad, the second largest railroad in the United States. He's known for his success in stock trading. Presidents and CEOs regularly turn to him for economic advice, and the world watches every move he makes. His success record has been nothing short of stunning. As someone who made his own wealth through financial wisdom, he certainly knows a lot about finance. Here's the steps he took to become one of the most successful self-made men in history.

Difficulty: Challenging

Instructions

Things You'll Need:

• A job
• Understanding of economics
• Access to books about Warren Buffet
• Patience
• Wisdom
• Self-Control

1. First, do not assume that all wealthy people were born to wealth. Warren Buffet was born to a normal family. His grandfather owned a grocery store. He started out knowing nothing about stock trading.

2. Second, work where you can. Your road to financial success doesn't start with stock trading. Warren Buffet worked at his grandfather's grocery store from his early youth. He also delivered newspapers.

3. Third, be careful with your money. According to a Wikipedia, when he filed his first income tax return he “deducted his bicycle and watch as a work expense.” Take care of financial details. They matter.

4. Fourth, don't be afraid to work hard to earn your money. Then make good investments, wherever they present themselves. Don't limit yourself to stock trading. Warren Buffet earned his investment money by delivering newspapers. Then he used the money to buy his first share of land when he was just 11 years old.

5. Fifth, don't be afraid to risk what little you have. One article about Warren Buffet at About.com: Investing for Beginners mentions that when Warren Buffet was a senior in high school, he and a friend bought a pinball machine for $25- a lot of money in those days. They placed the pinball machine in a barber shop, and with the profits they bought two more. Later, they sold the original pinball machine business to a veteran for $1200.

6. Sixth, take advice from other people. He wanted to skip college. His dad advised against this, so he took his Dad's advice and reluctantly went to college.

7. Seventh, if you really hate school, don't drop out. Just get it over with as quickly as possible. Warren Buffet hated school, so he took a heavy course load and finished in just three years. Other people might have dropped out.

8. Eighth, learn to present yourself well. According to an uncited notation in Wikipedia, he attended a Dale Carnegie public speaking course. Whether or not this is true, it makes a good story, and it's probably a good idea.

9. Ninth,learn to network. Seek out those you admire and try to work with them. Buffet put himself in front of people he admired, impressed them, and got a job with prestigious firms.

10. Tenth, forget schemes. Invest in high quality companies that make good products that are in demand. Buy low and sell high. Don't try stock trading on an hourly, daily, or even monthly basis. Buy good stocks from good companies, and hang on to them. Be an investor- not a speculator. This high finance genius made his money by stock trading, but he didn't trade just to trade.

11. Finally, read about Warren Buffet. Read about stock trading. Read about finance and economics. Discard any advice that claims that you can make money with no money down, or that you can make lots of money overnight. It takes work, wisdom, and patience.

Resources

• About.com: Investing for Beginners
• Wikipedia Entry about Warren Buffet
• http://www.xomba.com/warren_buffet_buys_bnsf

[yuhknowhat]

on 11/4/2009 It's a love letter to Warren Buffet, but I still love it!
Great advice. Five stars