Known as the “Oracle of Omaga” and the “Sage of Nebraska”, from a young age, Warren Buffett knew he would eventually become rich. He since dedicated his life to making money through investing, after taking a keen interest in the topic. After becoming the most successful investor of the 20th Century, he became the richest man in the world in 2008. Warren is known for his specific approach to value investing and for his prudent approach to money, despite having tremendous resources available to him. He has preferred to try to live the life of an ordinary man, without the flamboyance and luxury that money could permit him.
In a ceremony at the New York Public Library, he gave away two thirds of his vast fortune to five different charities, most of which went to the Bill and Melinda Gates foundation. This was an unheard-of sum of money to give away, especially for somebody known for making and not giving away money. He felt that the money would be best served going back into society to help people rather than creating a family fortune, which was against his principles. Through these different charities, he could be sure that others could choose better places to share his wealth than he could choose himself.
Warren Buffett Quotes
“If you get to my age in life and nobody thinks well of you, I don’t care how big your bank account is, your life is a disaster.”
Despite Warren’s phenomenal wealth, he still understands the things that should be of most importance to his life. Whilst he is obviously delighted with the money he has managed to accumulate during his successful career and the fact that he is a leader in his field, he appreciates the need to have a positive influence on other people. Upon reflection at an older age, the thing that matters to him is that people he cares for think well of him and love him for who he is. He does not want to be respected just for his ability to make money and his career.
“The big question about how people behave is whether they’ve got an Inner Scorecard or an Outer Scorecard. It helps if you can be satisfied with an Inner Scorecard.”
Warren shows his introspective nature by demonstrating what he believes about the way that people behave. Buffett feels that there are people that judge the success of their lives by their own standards (inner scorecard) or by the standards of others (outer scorecard). Clearly, Warren chooses to judge the way he behaves based on his own personal values and he feels other people would benefit and improve their lives more if they chose to live in the same way. Placing too much emphasis on satisfying other people can often lead you down the wrong path.
“It’s better to hang out with people better than you. Pick out associates whose behaviour is better than yours and you’ll drift in that direction.”
A very key aspect of Warren Buffett’s personality is his desire for self-improvement as much as possible. He looks to surround himself with people who he feels he can learn from or from people who have a skill which he would like to acquire. By doing this, Warren can mirror the behaviour of the other person when necessary and over time, become skilled in the same way. Often, people spend their time around people who do not help them or around people who drag them down. When this happens, it is harder for them to grow as a person. Buffett understood for a long time that he should be in the company of the things that he wants.
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”
Another huge element to the personality of Warren Buffett is the time and care he takes when making decisions. In his field of work, care and patience have proved to bring the most success for him. When he has made decisions in haste or without care, he has been punished more often. Of course, there are examples in life when it is difficult to do this because you need to react quickly or without having all the information available to you. However, if you have the time available, it is better to consider all avenues before pressing forward with a well-thought out decision.
“Of the billionaires I have known, money just brings out the basic traits in them. If they were jerks before they had money, they are simply jerks with a billion dollars.”
Many people seem to think that billionaires or those with extreme wealth are not very nice people. However, Warren Buffett feels differently about the impact that a lot of money can have on an individual. Warren believes that some people naturally have worse intentions than others. Adding wealth to the mix only emphasises the character of a bad individual. Buffett believes that you cannot judge whether a person is good or bad by their money, you should simply judge their character.
“The business schools reward difficult complex behaviour more than simple behaviour, but simple behaviour is more effective.”
Within all walks of life, as you dive further into a skill or interest, you need to start looking at and practicing more complicated ideas. Whilst complicated methodologies can be rewarding, these should only be performed in addition to the basics. Warren feels people frequently try to run before they can walk. This means they can stop doing the simple things that would make them successful in the first place. By keeping ideas simple, it is very easy to find flow in a task; from here you can build towards progress.
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
In terms of value, many people feel that they are getting a better deal when they buy a lesser product for a cheap price, rather than spending more on a higher quality product. However, the lesser purchase is still worse and generally comes with more disadvantages, which may cost you more money in the long run to pay for additional products, repairs or replacements. The same factor applies when investing and Warren feels that as long as you are not being overcharged, it can be more beneficial to go for the better product. Making the correct purchases when needed will prevent you spending more money and wasting your own time.
Warren Buffett MBTI (Probable)
The ISTJ (Inspector) thrives on organisation. They keep their lives and environments well-regulated. They bring painstaking attention to detail in their work and will not rest until a job is completed. ISTJ’s are faithful, logical, organised, sensible and earnest traditionalists. They earn success by thoroughness and dependability. Furthermore, they respect facts and hold a tremendous amount of data within themselves, gathered through their sensory function.
Warren Buffett – Keys to Success:
- Read often – Dedicate a good amount of time to reading from a wide-range of different sources, fiction, non-fiction, newspapers etc. By taking in information from a variety of bases, you can ensure that your understanding of different ideas will be broadened significantly over time.
- Put in the Hours – Nobody has ever fell to the top of a mountain from the bottom, the same is true of life. To be the best, you need to invest a lot of time in an activity. As a rule of thumb, 10,000 hours is said to be the amount of time needed to achieve “mastery” in many subject areas. However, this does not consider advantages due to natural or physical abilities. Keep on plugging away with the activity regardless of its difficulty and even if you cannot achieve the goal you have set, you will have improved.
- Improve the World – Try to invest your time into activities or ventures which will improve the planet and other people. If this is difficult, at the very least, make sure you are not causing negative impact. By focusing on things with good moral consequence, you will have more to work towards to increase your success.