Warren Buffett is known for his success and life philosophy. He attributes his accomplishments to about a dozen good decisions throughout his 58-year career. Here are some key decisions Buffett made that can inspire anyone striving for success:
Buffett nurtured his curiosity early on.
He borrowed a book called “One Thousand Ways to Make $1,000” from the Omaha Public Library and read it repeatedly. His father also took him on the New York Stock Exchange tour, deepening his interest in finance. Curiosity must be paired with action.
Buffett’s early business ventures included a paper route, car detailing, and selling Coca-Cola bottles. He has saved every federal income tax return back to 1944, reflecting his long-standing entrepreneurial spirit. Mentorship is crucial for growth.
Buffett’s first and most important mentor was his “investing hero,” Benjamin Graham. Graham was a professor at Columbia University’s Business School, which influenced Buffett’s decision to study there. Bold decisions can lead to extraordinary opportunities. In 1951, Buffett took a train to Washington to meet Lorimer Davidson at GEICO, who taught him about the insurance industry.
Years later, Berkshire Hathaway ended up owning GEICO.
Buffett’s keys to lasting success
While Buffett is known for his unconventional diet, he emphasizes the importance of taking care of one’s body and mind, advocating for healthy habits despite his own indulgences.
Buffett’s partnership with Charlie Munger was vital to his success. He also valued relationships with other business leaders, understanding the impact of strong networks. Acknowledging mortality, Buffett planned for his succession at Berkshire Hathaway, appointing Greg Abel to lead non-insurance businesses.
Admitting mistakes is a sign of wisdom. Buffett ceased operations in the textile industry when it became clear it was no longer viable, despite Berkshire Hathaway’s origins. Humor lightens life’s burdens.
Buffett frequently uses jokes in his communications, making even serious business discussions more approachable. Known as the Oracle of Omaha, Buffett often shares advice and lessons in his shareholder letters, showing his dedication to educating others. Buffett advises against acting without good options.
His strategy often includes patience and waiting for the right opportunity, rather than forcing action. Inspired by Chuck Feeney, Buffett, alongside Bill Gates, created the Giving Pledge, encouraging billionaires to commit to giving away the majority of their wealth. More than his wealth and advice, these 12 principles reflect the essence of Buffett’s legacy.
They are the kind of wisdom for which he will be remembered.
