Do you want to create wealth and success? Look no further. Follow these rules from billionaire Warren Buffett.
Warren Buffett has enjoyed sustained success as an investor and businessman for decades. Today, he’s worth over US$89 million.
How did he achieve all of his success?
It turns out that Buffett follows some timeless rules that apply to all people looking to create wealth.
Rule #1 – Mitigate Risk
You would think that Buffett risks a lot every day. After all, he’s an investor who invests in the stock market.
But he says that you don’t need to take high risks to invest successfully.
“Risk comes from not knowing what you are doing.”
It’s a simple statement with a powerful message. No matter your business, research is always your friend. Learn as much as possible before making any decisions. That’s how you lower risk.
Warren chilling in his office doing his favourite thing – reading!
Rule #2 – Don’t Fall into the Hindsight Trap
There’s an old expression that hindsight is 20/20.
That’s a dangerous thing for a business owner or investor. You could end up spending more time looking back than you do looking forward.
As Buffett says: “In the business world, the rear-view mirror is always clearer than the windshield.”
Here’s the rule you can glean from this. You can always look back and beat yourself up over your mistakes. But to truly succeed, you always need to learn from the past – look forward towards your next move.
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Rule #3 – Take Care of Your Reputation
Buffett has enjoyed such a stellar reputation over the years because he understands the value of actions.
“It takes 20 years to build a reputation and five minutes to ruin it,” he says. “If you think about that, you’ll do things differently.”
That’s another rule to take forward in your business or wealth creation. Never act rashly. Think about the consequences for your business or your ‘personal brand’ before you make any decisions.
Rule #4 – Say “No” When You Have To
You have a strong work ethic and you want to take on everything that you can.
It’s an admirable trait. But it’s also not going to get you anywhere in business.
As Buffett says: “The difference between successful people and really successful people is that really successful people say no to almost everything.”
Just because you can do something, it doesn’t mean you should. Overcome your fear of saying “no”. This ensures you only take the opportunities that truly add value to your business.
I hope these 4 rules provided you with some valuable food for thought.
One of the Rules Buffett follows religiously is to invest in assets that generate ‘free-cashflow’.
That’s why he now has more cash than he knows what to do with – literally!
Billions of dollars just sitting there collecting dust – as he looks for well-priced cash-generating assets.
If you want to discover how to generate ‘free cashflow’ via your own ‘spare time’ Amazon store make sure you check out this free webcast.