Beyond the millions: 10 essential life lessons Warren Buffett thinks everyone should live by
10 essential life lessons from Warren Buffett. 1. Guard your reputation fiercely 2. Operate within your "circle of competence" 3. Price is what you pay;
10 essential life lessons from Warren Buffett. 1. Guard your reputation fiercely 2. Operate within your "circle of competence" 3. Price is what you pay; value is what you get 4. Remember that your best investment is yourself 5. Practice strict emotional discipline 6. Keep your focus concentrated 7. Build a "margin of safety" into life 8. Associate only with people better than yourself 9. Write and communicate with radical clarity 10. Measure success via your 'inner scorecard' Warren Buffett’s philosophy stretches far beyond the balance sheets of Berkshire Hathaway. Over decades of writing his legendary annual shareholder letters and speaking to students, he has created a framework for living a rational, deliberate, and high-integrity life. Here are 10 life lessons extracted from his huge body of work.Buffett frequently reminded his employees that integrity is irreplaceable. In his 1991 testimony to Congress regarding Salomon Brothers, and summarized often to his managers, he stated: "Lose money for the firm, and I will be understanding. Lose a shred of reputation for the firm, and I will be ruthless." He said that it takes 20 years to build a reputation and only five minutes to ruin it. If you think about that, you will do things differently.You don’t need to be an expert on everything to succeed, but you must be deeply honest about what you do not know.
Buffett models this by avoiding industries he does not understand, regardless of how popular they are. Knowing the perimeter of your own ignorance is far more valuable than having a high IQ As he famously observed, if you have an IQ of 160, you should sell 30 points to someone else because you don't need them to excel in investing or life; you just need to know your boundaries.This core principle applies to both consumer goods and corporate acquisitions. Derived from his mentor Benjamin Graham, Buffett wrote that whether we are talking about socks or stocks, he liked buying quality merchandise when it is marked down. In life, separate the superficial cost of an experience or item from its intrinsic worth. True value sustains you; price is merely a temporary transaction.When asked by students about the best way to prepare for economic uncertainty, Buffett’s answer was always internal rather than external. He maintained that modifying your talents and maximizing your skills is an un-taxable, un-stealable asset. "Nobody can take away what you’ve got in yourself, and everybody has passive potential they haven't used yet."The stock market, much like daily life, is designed to test your emotional baseline.
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