10 ways to get rich, courtesy of Warren Buffett

By
Real Estate Agent with HomeSmart Realty West CalBRE #01458572

Since I worked at various Borders bookstores for over 35 years, I'm kind of addicted to reading. I read newspapers, magazines, books, and more.

A few weeks ago a book was released about Warren Buffett, the world's richest man, with an estimated fortune of $62 billion. Hmmmmmm. He could have rescued a few banks all by himself. The book is The Snowball: Warren Buffett and the Business of Life, by Alice Schroeder.

One of the promotional pieces in advance of the release date was 10 Ways to Get Rich: Warren Buffett's Secrets That Can Work For You, a synopsis of which I provide for you here:

  1. Re-invest your profits—Most of us spend our profits: new car, vacation, etc. Re-investing it can lead to greater wealth down the road.
  2. Be willing to be different—I think I read where Buffett said about the stock market, "Buy when everyone else is selling."
  3. Never suck your thumb—Gather the information you need to make a decision, and then make a decision. More sitting and more thinking is just "thumb sucking."
  4. Spell out the deal before you start—Many of us can take this one to heart because of all the work we did for a "Client" who wasn't under contract only to have him or her use someone else.
  5. Watch small expenses—I'm constantly amazed at the super rich who will haggle over a dollar here and a dollar there. Perhaps that's how they got to be rich.
  6. Limit what you borrow—As many have discovered recently, living on loans and credit cards doesn't make you rich. Keeping up with the Joneses doesn't make you rich. Having lots of toys that aren't paid for doesn't make you rich.
  7. Be persistent—My Partner loved this one since his favorite catch phrase seems is "Be persistent and consistent in what you do." That persistency and consistency can result in winning battles against more established competition.
  8. Know when to quit—You will have some losses in life. Know when to walk away.
  9. Assess the risks—I like to do this by creating two TOP 10 lists for any major decisions I might make, one for all the negative things that might happen, and one for all the positive things that might happen. It usually happens that one of them won't have 10 things on it, making my decision quite easy.
  10. Know what success really means—This is really powerful, so I'll quote directly from Buffett: "I know people who have a lot of money, and they get testimonial dinners and hospital wings named after them. But the truth is that nobody in the world loves them. When you get to my age, you'll measure your success in life by how many of the people you want to have love you actually do love you. That's the ultimate test of how you've lived your life."

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  1. Edna Ledoux Jamieson 10/23/2008 12:48 PM
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Rainmaker
197,938
Kent Anderson
from Schweitzer to the Lake
Coldwell Banker Realty-Schweitzer Mountain, Sandpoint, Idaho
Great points, Jim. ...especially #4..."spell out the deal before you start". Add to that..."smarter, not harder". Happy New Year.
December 31, 2008 06:23 PM
Rainmaker
128,041
KAREN SANCHEZ
...Marketing your home like no one else will.
Real Living Hamilton Landon

Thanks Jim,

I had a tough week.  This was the a need little shot in the arm.   I'll go back and do it again tomorrow.  I'll be working on #7.  I don't think it's time for #8.

Karen

February 08, 2009 09:37 PM
Rainmaker
47,713
Richard Overall
Your OVERALL Long-Term Real Estate Resource
United Country Premier Properties

Hi, Jim, just stumbled across your list.  Thanks for the boost.  These are great reminders that we in real estate don't have a job, we have a business and we should treat the day to day decisions as such.

February 24, 2009 09:09 PM
Rainmaker
140,187
Kathleen Frawley
South County Sacramento, 916 730 4404
Keller Williams Sacramento CA 916 730-4404

Great stuff Jim! I'm addicted to reading also...read the book, and your synopsis was exceptional thanks.

April 24, 2009 01:54 AM
Rainmaker
1,084,017
Jim Frimmer
Realtor & CDPE, Mission Valley specialist
HomeSmart Realty West

Hey, Kathleen.

I could never be rich like Buffet, Gates, Winfrey, and others, but it is fascinating to read how they did it, much more interesting than reading the daily trash about Lohan, Hilton, Spears, etc.

April 24, 2009 12:04 PM
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Rainmaker
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Jim Frimmer

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