10 Advice from Warren Buffet for Young People Who Want to Be Rich Arguably the most affluent investor ever to live, Warren Buffet became a millionaire in 1960 at the age of 30. Ever since then, Buffet has been one of the wealthiest people in the world.
Warren Buffet over the years has given various advice to young people about how they can be wealthy and successful. In this article, we’ll share with you 10 of the most inspiring information from Warren Buffet.
Advice number 5 is significant, so you need to read this article till the end.
Warren Buffet’s advice No 1.
“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”
As a young person, if there’s any single advice you should take very serious from anyone, that advice is; Be Different. Go against the tide. Figure out what everyone is doing and do just the opposite.
But why is this important?
Well, it’s important to do the opposite of what everyone else is doing because most people in the world aren’t thinking. Most people in the world find it hard to use their brains so most at times, what they do are determined by social proof which in turn does their decision wrong.
Take, for instance. Most people will only invest in stocks when stock prices are crazily going high. Unfortunately, that’s when smart individuals are selling.
If you’re normal, you can’t succeed. Don’t Be Normal! Figure out what everyone is doing and do just the opposite.
Warren Buffet’s advice No 2.
“No matter how great the talent or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant”.
What do you think is the number one reason why most people in the world are poor and unsuccessful? Well, it takes time, crazy dedication and unusual persistence to create wealth and success.
You must patiently endure the tough times, or you won’t be able to go through the rough road that leads to success. Great things take time. You can’t have a baby next month by impregnating nine women today.
Warren Buffet’s advice No 3.
“It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.”
One thing young people do more than anybody of other age demographic is that young people associate a whole lot.
Unfortunately, most people are not conscious of who they hang out with. We have an important exercise for you. Make a list of 5 people you spend most of your time with. Close your eyes and imagine where these people are likely to be in the next five years. Sorry, that’s where you’re going. Hahahhaha.
It’s pretty simple. If your associates are not ambitious or positive about life, you can’t be. If your friends don’t know more than you, you’re never going to grow and become a better person. So what should you do?
Cut yourself off from negative and unmotivated people. Choose your friends carefully because you can’t be better than who you associate with.
Warren Buffet’s advice No 4.
“You won’t keep control of your time, unless you can say ‘no.’ You can’t let other people set your agenda in life.”
Look around you. What do you see?
Distractions. Distractions. Distractions everywhere. The social media, TV, parties and movies. All these are interesting stuff that brings little or no value to who we are. The more “NO” we can say to distractions, the more time we’ll have to be productive at things that matter.
Warren Buffet’s advice No 5.
“You don’t have to be smarter than the rest. You have to be more disciplined than the rest.”
Forget everything you’ve been told about talents and IQ. Talents are as common in the world as table salt. Hundreds of people with 200 IQ score are broke. Discipline, practise, dedication, and persistence are what you need to be successful.
Warren Buffet’s advice No 6.
“Risk comes from not knowing what you’re doing.”
Take, for instance, more than 90% of people who are planning to start their businesses will never take time to study or read even ten books about business, not to talk of 100, yet, we all believe that business and investing are risky.
Why won’t they? The real risk is in your ignorance. The more you know about your field, the less risky it becomes To reduce risk, seek knowledge.
Warren Buffet’s advice No 7.
“The chains of habit are too light to be felt until they are too heavy to be broken.”
Did you ever see a drug addict looking helpless and wishing some powers rescue him from his addiction?
The best thing you can do with your life is to avoid bad habit altogether. Experimenting with them is like playing with fire because when your bad habits grow, you become their slaves.
Warren Buffet’s advice No 8.
“Enjoy your work and work for whom you admire.“
According to a Gallup Poll study, 85% of people all over the world hate their jobs. Since you’re going to spend more than 50% of your entire adult life working and planning to work, you better do all you can to do what you enjoy. It may not be easy, but if you are willing to pay the price and go through the necessary pains, you can create for yourself the kind of job or business you enjoy.
Warren Buffet’s advice No 9.
“You can’t buy what is popular and do well.”
This is very similar to our first point. You see, whenever anything becomes popular, the game is over. Be it a business idea or an investment opportunity. When you read about it in the news, it’s too late to call it an opportunity. Don’t live by the noise. The real thing is in secret.
So, how do you get the hidden opportunities no one is seeing? Read the books; no one is reading. Search for knowledge when others search for entertainment. If you know what others don’t know, you’ll see opportunities long before they see them.
Warren Buffet’s advice No 10.
“Never invest in a business you cannot understand.”
Don’t be a generalist. Be a specialist. Choose one or few fields you’re interested in, study every day to know what nobody knows about such field and say “No” to any other thing you don’t understand.
If you can’t take time to study any business, don’t ever invest in it because everyone is doing so. For instance, don’t invest in Cryptocurrency because everyone is doing so if you can’t take time to study Cryptocurrency. Don’t invest in the stock market if you can’t take time to read ten good books about stocks. Don’t invest in real estate if you can’t take time to read at least five good books about real estate.
Send your money to only where your knowledge lies. In summary, if you want to be rich, do the opposite of what everyone else is doing, say no to unproductive activities, avoid bad habits, select your friends carefully, be disciplined and patient because it takes time to achieve anything worthwhile.