Warren Edward Buffett is one of the most influential investor, philanthropist, and entrepreneur. He has played several important roles throughout his life which has inspired others to follow on his footsteps.
He is often denoted as the Oracle or Wizard of Omaha. Over the span of his life, he has accumulated a net worth of more than 70.9 Billion US Dollars. He has immensely contributed to the society through Gates Foundation and has pledged to donate 99 percent of wealth for notable causes all around the world.
Warren Edward Buffet has performed consistently in terms of generating revenue for his company named Berkshire Hathaway of whose Chairman and C.E.O positions are held by him.
He is often termed as the world wealthiest person in various magazines and newspaper.
His success can be measured through his work as he has performed consistently and managed to retain the position as the 3rd wealthiest person in the whole world. He is also often termed as one of the most successful investor of the 20th Century.
Warren Buffet has himself stood as an example for several others. He started early in his career by selling profitable goods, gained higher education and became one of the world’s wealthiest by hard work and meticulous planning. Some of his life lessons which we could implement in our lives are –
- The most important lesson which we should learn from Warren Buffett is patience He says that patience always pays out. For example, in a volatile market one shouldn’t trade frequently unless one is very confident about the position. It leads to susceptible results and loss in short term positions. He says in terms of stocks, great opportunities to invest funds are rare, but one should study the market in detail and research prior investing in a position. Moreover, he advises that temptation often leads to selling our position, but one should remember that opportunities to trade great positions are rare and we should trade with our best in class capability to sustain our position. He even adds that people working in large financial corporations are forced to sell their positions at lost and buy whatever stock has outperformed. So, we should seize the opportunity to our advantage.
- Another important lesson that can be learned from him is reputation. He is known to defend his reputation aggressively. Reputation matters most than anything else. He says that reputation has no match to money as reputation once lost cannot be bought later while the loss of money can be recovered by gains later.This strategy is followed by businesses worldwide resulting in returning customers and higher profits. He believes that creating reputation takes a lifetime to build and a moment to destroy.
- The strategy to remain in the business in spite of economic downfall and market volatility is talent. He says that if one possesses real talent in any particular field he /she could find opportunities in any circumstances.We need to develop and sharpen our skills on a daily basis in order to overcome obstacles. Furthermore, one should always help others with a constant focus on our line of work which eventually pays off in terms of money.
- People often tend to stay away from investment in the market due to volatility. But, Warren Buffett advises that volatility is our friend not enemy. Volatility refers to rapid fluctuations in the market. It shows that the market is strong as transaction volume are high, leading to a greater generation of revenue. We should always invest in the market by keeping our conscience clean deprived of emotions and stress.A volatile market means that we have more opportunity to buy positions at very low prices. For example, if someone buys a good company at a low price then the prices tend to move higher as the company deserves a better price. He says that we should trust the market and concentrate heavily on buying positions which are worth much more at low prices. It will eventually yield profit resulting to growth of revenue.
- Most importantly, he said that failures are part of the learning process which means that we should consistently try harder with more research and skills even if we fail to achieve the required goal. Never trying once is much worse than trying and failing. We learn from our failures and move forward towards our success. He claims that no one has ever succeeded without failing.Most people never succeed in their lives because they are too afraid to accept failure. Failures are part of our lives. We should work harder in order to overcome our failures and proceed forward towards success. When we face hardships, we develop courage which boost our moral to succeed.