Famous Entrepreneur Quotes
Warren Buffett’s Quotes
“Someone is sitting in the shade today because someone planted a tree a long time ago.”
“In the business world, the rearview mirror is always clearer than the windshield.”
“Price is what you pay. Value is what you get.”
Warren Buffett’s Top 10 Rules For Entrepreneurship, Business and Success
He was the single most successful investor of the 20th century. Time magazine named him one of the most influential people in the world. He’s worth over $70 billion. He’s Warren Buffett and here are his top 10 rules for success
Rule #1. Find Your Passion
You find your passion. You find your passion. I was very, very lucky to find it when I was seven or eight years old, and, fortunately, my children have found their passion, one son loves farming like nothing else, one son loves music like everything else, and all three of them love philanthropy and what they get to do.
You are lucky in life when you find it, and you can’t guarantee that you are going to find it at your first job, but I always tell college students, take the job you would take if you were independently wealthy. You are going to do well at it.
If you think you are going to be a lot happier if you have 2x instead of x you are probably making a mistake. You’ve got to find something you like that works with that, and you will get in trouble if you think that making 10x or 20x is the answer for everything in life, because then you will do things like borrow money when you shouldn’t or maybe cut corners on things that your employer wants you to cut corners on. It just doesn’t make any sense and you won’t like it when you look back on it.
Rule #2. Hire Well
Three things in hiring people: look for integrity, intelligence and energy. If a person doesn’t have the first two, the latter two will kill them, because if they don’t have integrity, you want them dumb and lazy, you don’t want them smart and energetic.
Rule #3. Don’t Care What Others Think
It never bothers me if people disagree with what I thought, as long as I felt I knew the facts. There is a whole bunch of things I don’t know a thing about. I just stay away from those. So I stay within what I call my circle of competence, and Tom Watson said it best, he said I’m no genius, but I’m smart in spots, and I stay around those spots.
Well I try and stay around those spots, and I just don’t have a problem if somebody says you know, you are wrong on something. I just go back and look at the facts. I think that really is much more important, frankly, than having a few points of IQ or having an extra course or two in school; you need emotional stability.
Rule #4. Read, Read, Read
I just read, and read, and read. I probably read five to six hours a day. I don’t read as fast now as when I was younger, but I read five daily newspapers, I read a fair number of magazines, I read 10- K’s, I read annual reports and I read a lot of other things too. I’ve always enjoyed reading, I love reading biographies.
Rule #5. Have A Margin Of Safety
Famous lesson about a margin of safety: You don’t drive a truck that weights 9,000 pounds across the bridge that says limit 10,000 pounds because you can’t be that sure about it. If you see something like that, you go further down the road and you find the one that says limit 20,000 pounds and that’s the one you cross.
Rule #6. Have A Competitive Advantage
The nature of capitalism is that people want to come in and take your castle; its perfectly understandable. I mean, if I’m selling television sets or something, there’s going to be 10 other people who are going to try to sell a better television set. If I have a restaurant down here in Omaha, people are going to try and copy my menu and give more parking. And take my chef and so on.
So, capitalism is all about somebody coming in trying to take the castle. Now, what you need is you need a castle that has some durable competitive advantage, some castle that has a moat around it, and that moat – one of the best moats in many respects – is to be a low cost producer.
But sometimes the moat is just having more talent. I mean, if you’re the heavyweight champion of the world and you keep knocking out people you’ve got competitive advantage as long as you can keep doing it. And it’s very profitable if you’re the one that happens to be able to do it.
Rule #7. Schedule For Your Personality
You’d be surprised at my days; they are very unstructured, no meetings. I don’t like meetings. I read a lot, I wish I were a faster reader, I’d get more done, but I do read a lot. And I’m on the phone a moderate amount. Our businesses run themselves basically. My job is allocating capital and that’s what I’m thinking about. But I don’t like to have things all packed hour to hour to hour.
Bill and I are both extraordinarily lucky, I mean we really get to do what we like to do, the way we want to do it, with people that we choose to be around and that are terrific. I mean, we’ve really got everything our way, and we’re very fortunate. And in his world he has a different kind of pace than I have, but we both love it the way we do it and my guess is that we’re each the most productive in that particular mode, it fits our personalities and aptitudes.
Rule #8. Always Be Competing
What kills great businesses, if you look at, and I do believe in looking at history and I like to study failure actually, and then my partner says all I want to know is where I’ll die so I’ll never go there, and we want to see what has caused businesses to go bad.
And the biggest thing that kills them is complacency. You want a restlessness, a feeling that somebody’s always after you, but you’re going to stay ahead of them – you always want to be on the move.
And when you’ve got a great business, like Coca-Cola which is, there aren’t any like Coca-Cola, but the danger would always be that you rest on your laurels but I see none of that obviously at coca-cola, but that is the key, to compete the same way when you’ve got 1.8 billion servings being sold daily as when you were selling 10 a day, and that restlessness, that belief that tomorrow’s more exciting than today, you just have to have it permeate the organization.
Rule #9. Model Success
Who was Ben Graham? He was your primary mentor, model?
He was a wonderful man and he was my professor at Columbia. I read his book when I was nineteen at the University in Nebraska. I started investing when I was eleven. I started reading about it when I was like seven, so I’ve gone through all, I read every book in the Omaha public library by the time I was twelve on investing and stock market.
And I had a lot of fun, but I never really found out, I never got grounded in anything, and it was entertaining but it wasn’t going to be profitable, and then I read Grahams book, The Intelligent Investor, when I was at University of Nebraska, and that just opened the whole thing up to me.
Ben Graham in his low teens looked around and he looked at the people he admired and he said, I want to be admired, so why don’t I just behave like them. And he found that there is nothing impossible about behaving like them.
Rule #10. Give Unconditional Love
You have given a lot of fabulous advice, but what is the best advice that you ever received?
Well, the biggest lesson I got is the power of unconditional love, I think there’s no power on Earth like unconditional love. I think that you offer that to your child, and you are 90% of the way home.
To know that you can always come back, that is huge in life, that takes you a long, long way. And I would say that every parent out there that can extend that to their child at a very young age, that’s going to make for a better human being.
And you felt like you got that kind of unconditional love from your dad?
I absolutely did.
Warren Buffett’s Rules
- Find your passion
- Hire well
- Don’t care what others think
- Read, read, read
- Have a margin of safety
- Have a competitive advantage
- Schedule for your personality
- Always be competing
- Model success
- Give unconditional love
I hope you enjoyed this article, make sure to check my Warren Buffett video on his Top 10 Rules For Success as well.
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