You can’t dispute Warren Buffett’s investment expertise. And in his over 90 years of living, he’s given some profound, yet simple words to live by.
Posted on inc.com, Marcel Schwantes lists four choices in life that Buffett says separates the doers from the dreamers. Schwantes adds, “(It’s) common sense, yes. But to many of us, it’s not common practice.” So, what is the “down-to-earth wisdom” offered by Buffett? Let’s check it out.
Go To Bed A Little Smarter Each Day
You probably can’t spend 80 percent of your day reading like Buffett can. However, you can follow “one simple rule: the Buffett Formula.”
“According to Buffett, the key to your success is to go to bed a little smarter each day. Buffett pointed out the strong similarity with investing when he said, ‘That’s how knowledge builds up. Like compound interest.’”
See related blog: A.I. Knowledge is Power
Buffett’s not telling you what subject you should be smarter in each day. Simply encouraging you to stretch yourself. Schwantes’ key takeaway is “to make whatever progress you can and improve your life on a daily basis.”
Pick Your Friends Wisely
How important are your friends and those you associate with? They can make all the difference in the world!
When speaking with some college students, Buffett reportedly said, “‘You will move in the direction of the people that you associate with. So it’s important to associate with people that are better than yourself. The friends you have will form you as you go through life. Make some good friends, keep them for the rest of your life, but have them be people that you admire as well as like.”
An article at Money Under 30, further discusses what happens when your goals include investing, while your friends’ goals are made up of spending. “Those are polar opposite objectives,” wrote Kevin Mercadante.
“There’s more to this than just a difference of opinion. Most of us need some sort of reassurance when it comes to investing…. Whenever we’re distressed about anything, talking about it with our friends is a natural occurrence,” Mecadante continued.
It’s easier to talk about things of mutual interest. And if your friends have qualities you admire, you’ll be inspired to do greater things.
Improve Your Communication Skills
Being able to communicate well was important to Buffett from an early age. He believed it would increase your “worth 50 percent more than you are now.” Without regard to your age, set a goal to improve your communications skills.
In a video posted in 2018, Buffett said, “If you can’t communicate, it’s like winking at a girl in the dark—nothing happens. You can have all the brainpower in the world, but you have to be able to transmit it. And the transmission is communication.”
Because Buffett believes the greatest commodity of all is time, he has mastered the art and practice of setting boundaries for himself. “This Buffett quote remains a powerful life lesson:
‘The difference between successful people and really successful people is that really successful people say no to almost everything.’”
You say no to remove the unimportant things in your life. You remain focused on saying yes to what truly matters.
Further Simplify Your Life
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The best algorithmic trading software is part of what makes iFlip’s A.I. Smartfolios the smartest way to invest in your future. A daily analysis of the market causes the machine learning A.I. to mitigate your risk.
No one can time the market exactly or predict the future, but iFlip’s A.I. SmartFolio technology can get you close enough to save you significant losses. The automated trading software will automatically buy, sell or hold your money in cash, depending on market movement.
Choose friends wisely. Get a little smarter every day. Communicate better. And say no when necessary. Great advice from a wealthy man who also encourages you to invest long-term.
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