Warren Buffett



01.Reinvest your Profits:When you first make money,you may be tempted to spend it. Don't.Instead, reinvest the profits. warren Buffet learned this early on. In high school, he and a pal bought a pinball machine to pun in barbershop. With the money they earned, they bought more machines until they had eight in different shops. When the friends sold the venture, Warren Buffet used the proceeds to buy stocks and to start another small business. By age 26, he'd amassed $174,000 -- or $1.4 million in today's money. even a small sum can turn into great wealth. 

02.Be Willing To be Different: Don't base your decisions upon what everyone is saying or doing. When warren Buffet began managing money in 1956 with $100,000 cobbled together from a handful of investors, he was dubbed an oddball. He worked in Omaha, not Wall Street, and he refused to tell his parents where he was putting their money. People predicted that he'd failed, but when he closed his partnership 14 years later, it was worth more than $100 million. Instead of following the crowd, he looked for undervalued investments and ended up vastly beating the market average every single year. To warren buffet. the average is just that -- what everybody else is doing. to be above average, you need to measure yourself by what he calls the Inner Scorecard, judging yourself by your own standards and not the world's.


03.Never Suck Your Thumb: Gather in advance any information you need to make a decision, and ask a friend or relative to make sure that you stick to a deadline.Warren Buffet prides himself on swiftly making up his mind and acting on it. He calls any unnecessary sitting and thinking "thumb sucking". When people offer him a business or an investment, he says, "I won't talk unless they bring me a price". He gives them an answer on the spot.


04. Spell out The Deal Before You Start: Your bargaining leverage is always greatest before you begin a job -- that's when you have something to offer that the other party wants. Warren Buffet learned this lesson the hard way as a kid, when his grandfather Ernest hired him and a friend to dig out the family grocery store. The boys spent five shoveling until they could barely straighten their frozen hands. Afterwards, his grand father gave the pair less than 90 cents split. 
Warren Buffet was horrified that he performed such backbreaking work only to earn pennies an hour. Always nail down the specifics of a deal in advance -- even with your friends and relatives.

05.Limit What You Borrow:living on credit cards and loans won't make you rich. Warren Buffet has never borrowed a significant amount -- not to invest, not for a mortgage. He has gotten many heart-rendering letters from people who thought their borrowing was manageable but became overwhelmed by debt. His advice : Negotiate with creditors to pay what you can. Then, when you're debt-free, work on saving some money that you can use to invest.





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