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Warren Buffett’s 5 Rules of Success

 

“Known as the “Oracle of Omaha,” Warren Buffett is an investment guru and one of the richest and most respected businessmen in the world” (http://www.biography.com/people/warren-buffett-9230729).

  1. Don’t Care What Others Think: It never bothered Warren Buffet if people disagreed with what he thought as long as he knew the facts. He knows what he is good at and stays around those spots. This is a problem for everyday people and entrepreneurs.  If you want to be great you can’t always be worried about what others think and you have to go with your gut.
  2. Find Your Passion: Take the job you would take if you were independently wealthy.  Or get passionate about what you are doing.  If you can find something you like or love and can make money on it that is even better. I will say it doesn’t always happen that you can monetize on things that you love but if you can get into something and truly be passionate that will help you make money so that you can also spend time on doing what you love.
  3. Hire well: You want to hire people for 3 qualities integrity, intelligence, and energy if they don’t have the first two you don’t want them. Because if they have energy you want them dumb and lazy.  But really, really you need to make sure that you hire for your weaknesses if you want to be successful that’s why knowing what you are strong at is so important so you can staff your weakness properly.
  4. Have a Margin of Safety: You can’t drive a truck 9,900 across a bridge that says limit 10,000 pounds you just can’t be that sure you drive down the road and find a bridge that says limit 20,000 pounds and that’s the one you drive across. You don’t want to cut things so close that you take an unnecessary risk when the proper risk is just a little more work to achiever.
  5. Always be competing:  I like to study failure, because I want to see what causes businesses to go bad and the biggest thing that kills them is complacency. You want restlessness or a feeling that someone is always after you.  And you are going to do your best to stay ahead of them and you always want to be on the move when you have a great business because the danger is always that you could rest on your laurels.

About Dennis M. Postema

Dennis M. Postema, RFC, is a successful entrepreneur, best-selling author, coach, speaker and registered financial consultant. He is the founder of MotivationandSuccess.com, StoriesofPerseverance.org, FinancingYourLife.com and TheRetirementInstitute.org.

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