Buffett Success Quotes

If you’re in the luckiest one per cent of humanity, you owe it to the rest of humanity to think about the other 99 per cent.

The difference between successful people and really successful people is that really successful people say no to almost everything.

You only have to do a very few things right in your life so long as you don't do too many things wrong.

H is for Habit, winners make a habit of doing the things losers don't want to do.

The difference between successful people and very successful people is that very successful people say “no” to almost everything.

The lesson of Buffett was: To succeed in a spectacular fashion you had to be spectacularly unusual.

Warren Buffett said that he would not invest in any business where the owner hasn’t failed at least twice. I love that truly wealthy and successful people understand that failure is part of the process.

Good habits are the basic tools that will determine whether you are a tortoise or hare in life!

In fact, when Warren Buffett was once asked about the key to success, he pointed to a stack of nearby books and said, “Read 500 pages like this every day. That’s how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.

To be successful, look for the job you will take if you don't need a job

Warren Buffett, “The difference between successful people and very successful people is that very successful people say no to almost everything.

You have a choice,” Dan said. “You can be good at those twenty-five things or you can be world-class at the five. Most people have so many things they want to do that they never do a single thing well. If I’ve learned one thing from Mr. Buffett, it’s that the Avoidance List is the secret to being world-class. “Success,” he added, “is a result of prioritizing your desires.

This became my own goal: not to be Warren Buffett, but to become a more authentic version of myself. As he had taught me, the path to true success is through authenticity.

In some ways, it's easier to settle for someone else's version of success than to risk falling short at one's own.

Warren Buffett sums that up: “I always worry about people who say, ‘I’m going to do this for ten years; I really don’t like it very well. And then I’ll do this . . .’ That’s a lot like saving sex up for your old age. Not a very good idea.

price is what you pay; value is what you get.

Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks. —Warren Buffett

The difference between successful people and very successful people is that very successful people say ‘no’ to almost everything.” - Warren Buffett Part I The People-Pleasing Habit Think of a friend or acquaintance whom you’d consider to be a typical people pleaser.

You can’t make a good deal with a bad person.

More than 2,000 books are dedicated to how Warren Buffett built his fortune. Many of them are wonderful. But few pay enough attention to the simplest fact: Buffett’s fortune isn’t due to just being a good investor, but being a good investor since he was literally a child. As I write this Warren Buffett’s net worth is $84.5 billion. Of that, $84.2 billion was accumulated after his 50th birthday. $81.5 billion came after he qualified for Social Security, in his mid-60s. Warren Buffett is a phenomenal investor. But you miss a key point if you attach all of his success to investing acumen. The real key to his success is that he’s been a phenomenal investor for three quarters of a century. Had he started investing in his 30s and retired in his 60s, few people would have ever heard of him. Consider a little thought experiment. Buffett began serious investing when he was 10 years old. By the time he was 30 he had a net worth of $1 million, or $9.3 million adjusted for inflation.16 What if he was a more normal person, spending his teens and 20s exploring the world and finding his passion, and by age 30 his net worth was, say, $25,000? And let’s say he still went on to earn the extraordinary annual investment returns he’s been able to generate (22% annually), but quit investing and retired at age 60 to play golf and spend time with his grandkids. What would a rough estimate of his net worth be today? Not $84.5 billion. $11.9 million. 99.9% less than his actual net worth. Effectively all of Warren Buffett’s financial success can be tied to the financial base he built in his pubescent years and the longevity he maintained in his geriatric years. His skill is investing, but his secret is time. That’s how compounding works. Think of this another way. Buffett is the richest investor of all time. But he’s not actually the greatest—at least not when measured by average annual returns.

Eighty-five percent of small businesses in this country fail within the first two years. Eight-five percent! That’s a whole lot of failure. Warren Buffett said that he would not invest in any business where the owner hasn’t failed at least twice. I love that truly wealthy and successful people understand that failure is part of the process.

If you don't prioritize your life, someone else will. - Greg McKeown A 'no' uttered from the deepest conviction is better than a 'yes' merely uttered to please, or worse, to avoid trouble. - Mahatma Gandhi The difference between successful people and very successful people is that very successful people say ‘no’ to almost everything.” - Warren Buffett

Buffett is known for thinking carefully when those around him lose their heads. “Success in investing doesn’t correlate with IQ,” he has said. “Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing.

Warren Buffett wisely stated, “The rich invest in time; the poor invest in money.

In the business world, the rearview mirror is always clearer

Time is the friend of the wonderful company, the enemy of the mediocre.

Honesty is a very expensive gift. Don’t expect it from cheap people.

Because the fact is, when you’re discussing passion, you can’t only judge someone on their success, but on their failures as well.

It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently. - Warren Buffett

No business has ever failed with happy customers. You are selling happiness.

As Warren Buffett once said, “Someone is sitting in the shade today because someone planted a tree a long time ago.

The difference between successful people and very successful people is that very successful people say no to almost everything.

Stay away from the mentality of using the credit card compulsorily and invest on yourself. Wealth has not created mankind but mankind has created wealth. Live your life in the simplest manner possible.

Munger, like Buffett, believes a successful investment career boils down to only a handful of decisions. So when Charlie likes a business, he makes a very large bet and typically holds the position for a long period.

Our advantage, rather, was attitude: we had learned from Ben Graham that the key to successful investing was the purchase of shares in good businesses when market prices were at a large discount from underlying business values.

Temperament is also important. Independent thinking, emotional stability, and a keen understanding of both human and institutional behavior is vital to long-term investment success. I’ve seen a lot of very smart people who have lacked these virtues.

Warren Buffett, the legendary investor and one of the wealthiest men in the world, has used exactly the attributes we’ve explored in this chapter—intellectual persistence, prudent thinking, and the ability to see and act on warning signs—to make billions of dollars for himself and the shareholders in his company, Berkshire Hathaway. Buffett is known for thinking carefully when those around him lose their heads. “Success in investing doesn’t correlate with IQ,” he has said. “Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing.

Basically, when you get to my age, you'll really measure your success in life by how many of the people you want to have love you actually do love you. I know people who have a lot of money, and they get testimonial dinners and they get hospital wings named after them. But the truth is that nobody in the world loves them. If you get to my age in life and nobody thinks well of you, I don't care how big your bank account is, your life is a disaster. That's the ultimate test of how you have lived your life. The trouble with love it that you can't buy it. You can buy sex. You can buy testimonial dinners. You can buy pamphlets that say how wonderful you are. But the only way to get love is to be lovable. It's very irritating if you have a lot of money. You'd like to think you could write a check: I'll buy a million dollars' worth of love. But it doesn't work that way. The more you give love away, the more you get." — Warren Buffett

Many security analysts still believe that agencies are a poor investment. Not so Warren Buffett, one of the most successful investors in the world. He has taken substantial positions in three publicly held agencies, and is quoted as saying, ‘The best business is a royalty on the growth of others, requiring very little capital itself … such as the top international advertising agencies.’ If

I’m convinced that there is much inefficiency in the market. These Graham-and-Doddsville investors have successfully exploited gaps between price and value. When the price of a stock can be influenced by a “herd” on Wall Street with prices set at the margin by the most emotional person, or the greediest person, or the most depressed person, it is hard to argue that the market always prices rationally. In fact, market prices are frequently nonsensical.

Living frugally even when you can afford to live luxurious will not only help you to save money. It will also help you to realize what is truly important in life. The secret that Warren Buffett knows is that money truly cannot buy you happiness. It can buy you a sense of security and it can open many doors for you. However, happiness comes from being engaged in fulfilling work; from strengthening your relationships with those who are most important to you; from doing those things that make you happy.

Stan Druckenmiller, reflecting on his unbelievable success as an investor, said that the only way to make superior returns is to concentrate heavily. He thinks “diversification and all the stuff they’re teaching at business school today is probably the most misguided concept everywhere. And if you look at great investors that are as different as Warren Buffett, Carl Icahn, Ken Langone, they tend to be very, very concentrated bets. They see something, they bet it, and they bet the ranch on it… . [T]he mistake I’d say 98 percent of the money managers and individuals make is they feel like they got to be playing in a bunch of stuff.”4

Thinking, Fast and Slow by Daniel Kahneman The Four Pillars of Investing by William Bernstein The Little Book of Common Sense Investing by John Bogle The Little Book of Behavioral Investing by James Montier Stocks for the Long Run by Jeremy Siegel The Warren Buffett Portfolio by Robert Hagstrom Damn Right: Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger by Janet Lowe Investing: The Last Liberal Art by Robert Hagstrom Success Equation: Untangling Skill and Luck in Business, Sports, and Investing by Michael Mauboussin Devil Take the Hindmost by Edward Chancellor The Most Important Thing by Howard Marks All About Asset Allocation by Rick Ferri Winning the Loser's Game by Charles Ellis

The Art of Subtraction If there is one habit that all of the investors in this chapter have in common, it’s this: They focus almost exclusively on what they’re best at and what matters most to them. Their success derives from this fierce insistence on concentrating deeply in a relatively narrow area while disregarding countless distractions that could interfere with their pursuit of excellence. Jason Zweig, an old friend who is a personal finance columnist at the Wall Street Journal and the editor of a revised edition of The Intelligent Investor, once wrote to me, “Think of Munger and Miller and Buffett: guys who just won’t spend a minute of time or an iota of mental energy doing or thinking about anything that doesn’t make them better. . . . Their skill is self-honesty. They don’t lie to themselves about what they are and aren’t good at. Being honest with yourself like that has to be part of the secret. It’s so hard and so painful to do, but so important.

All 250 + episodes to date can be found at tim.blog/ podcast and itunes.com/ timferriss Jamie Foxx on Workout Routines, Success Habits, and Untold Hollywood Stories (# 124)—tim.blog/ jamie The Scariest Navy SEAL I’ve Ever Met . . . and What He Taught Me (# 107)—tim.blog/ jocko Arnold Schwarzenegger on Psychological Warfare (and Much More) (# 60)—tim.blog/ arnold Dom D’Agostino on Fasting, Ketosis, and the End of Cancer (# 117)—tim.blog/ dom2 Tony Robbins on Morning Routines, Peak Performance, and Mastering Money (# 37)—tim.blog/ tony How to Design a Life—Debbie Millman (# 214)—tim.blog/ debbie Tony Robbins—On Achievement Versus Fulfillment (# 178)—tim.blog/ tony2 Kevin Rose (# 1)—tim.blog/ kevinrose [If you want to hear how bad a first episode can be, this delivers. Drunkenness didn’t help matters.] Charles Poliquin on Strength Training, Shredding Body Fat, and Increasing Testosterone and Sex Drive (# 91)—tim.blog/ charles Mr. Money Mustache—Living Beautifully on $ 25–27K Per Year (# 221)—tim.blog/ mustache Lessons from Warren Buffett, Bobby Fischer, and Other Outliers (# 219)—tim.blog/ buffett Exploring Smart Drugs, Fasting, and Fat Loss—Dr. Rhonda Patrick (# 237)—tim.blog/ rhonda 5 Morning Rituals That Help Me Win the Day (# 105)—tim.blog/ rituals David Heinemeier Hansson: The Power of Being Outspoken (# 195)—tim.blog/ dhh Lessons from Geniuses, Billionaires, and Tinkerers (# 173)—tim.blog/ chrisyoung The Secrets of Gymnastic Strength Training (# 158)—tim.blog/ gst Becoming the Best Version of You (# 210)—tim.blog/ best The Science of Strength and Simplicity with Pavel Tsatsouline (# 55)—tim.blog/ pavel Tony Robbins (Part 2) on Morning Routines, Peak Performance, and Mastering Money (# 38)—tim.blog/ tony How Seth Godin Manages His Life—Rules, Principles, and Obsessions (# 138)—tim.blog/ seth The Relationship Episode: Sex, Love, Polyamory, Marriage, and More (with Esther Perel) (# 241)—tim.blog/ esther The Quiet Master of Cryptocurrency—Nick Szabo (# 244)—tim.blog/ crypto Joshua Waitzkin (# 2)—tim.blog/ josh The Benevolent Dictator of the Internet, Matt Mullenweg (# 61)—tim.blog/ matt Ricardo Semler—The Seven-Day Weekend and How to Break the Rules (# 229)—tim.blog/ ricardo

But being short something where your loss is unlimited is quite different than being long something that you’ve already paid for. And it’s tempting. You see way more stocks that are dramatically overvalued in your career than you will see stocks that are dramatically undervalued. I mean there — it’s the nature of securities markets to occasionally promote various things to the sky, so that securities will frequently sell for 5 or 10 times what they’re worth, and they will very, very seldom sell for 20 percent or 10 percent of what they’re worth. So, therefore, you see these much greater discrepancies between price and value on the overvaluation side. So you might think it’s easier to make money on short selling. And all I can say is, it hasn’t been for me. I don’t think it’s been for Charlie. It is a very, very tough business because of the fact that you face unlimited losses, and because of the fact that people that have overvalued stocks — very overvalued stocks — are frequently on some scale between promoter and crook. And that’s why they get there. And once there — And they also know how to use that very valuation to bootstrap value into the business, because if you have a stock that’s selling at 100 that’s worth 10, obviously it’s to your interest to go out and issue a whole lot of shares. And if you do that, when you get all through, the value can be 50. In fact, there’s a lot of chain letter-type stock promotions that are sort of based on the implicit assumption that the management will keep doing that. And if they do it once and build it to 50 by issuing a lot of shares at 100 when it’s worth 10, now the value is 50 and people say, “Well, these guys are so good at that. Let’s pay 200 for it or 300,” and then they could do it again and so on. It’s not usually that — quite that clear in their minds. But that’s the basic principle underlying a lot of stock promotions. And if you get caught up in one of those that is successful, you know, you can run out of money before the promoter runs out of ideas. In the end, they almost always work. I mean, I would say that, of the things that we have felt like shorting over the years, the batting average is very high in terms of eventual — that they would work out very well eventually if you held them through. But it is very painful and it’s — in my experience, it was a whole lot easier to make money on the long side.

were predominately limited to a gas station and unfruitful real estate investments. Unfortunately none of his personal financial ventures during this early period of his marriage were successful. However, It was during this time that Buffet began teaching night courses at the University of Omaha, a feat that would not have been possible for the naturally shy and humble Buffett if it were not for a public speaking course he took at Dale Carnegie University, a degree that Buffett still credits as being the most beneficial to his professional life. “Wall Street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway.

Market forecasters will fill your ear but never fill your wallet.

We have to decide whether we can sensibly estimate an earnings range for five years out, or more. If the answer is yes, we will buy the stock (or business) if it sells at a reasonable price in relation to the bottom boundary of our estimate.

Rationality is essential.

I read annual reports of the company I’m looking at, and I read the annual reports of the competitors—that is the main source of material.

I like a business that, when it’s not managed at all, still makes lots of money. That’s my kind of business.

Don’t pass up something that’s attractive today because you think you will find something more attractive tomorrow.

You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right.

After Buffett finished undergrad at University of Nebraska in Lincoln, he was working as a stockbroker, which essentially means he was a stock salesman. Though nearly every time Buffett tried to get a meeting with a businessperson in Omaha, he was turned down. No one wanted to meet with a young guy with no credibility, trying to sell them stocks. So Buffett changed his approach—he began calling up businesspeople and made them feel he could save them money on their taxes. All of a sudden the businesspeople said, “Come on in!” And just like that, Buffett booked his meetings. “This is the thing,” I told Corwin. “Although people won’t meet with you for the reason you want, that doesn’t mean they won’t meet at all. Just find another angle.

I insist on a lot of time being spent, almost every day, to just sit and think. That is very uncommon in American business. I read and think. So I do more reading and thinking, and make less impulse decisions than most people in business. I do it because I like this kind of life.

The difference between successful people and very successful people is that very successful people say “no” to almost everything.

Buy into a company because you want to own it, not because you want the stock to go up.

The asset I most value, aside from health, is interesting, diverse, and long-standing friends.

Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily-understandable business whose earnings are virtually certain to be materially higher five, ten and twenty years from now. Over time, you will find only a few companies that meet these standards

तुमच्यापेक्षा उत्तम असणाऱ्या व्यक्तींच्या संगतीत राहणे केव्हाही चांगलेच. तुम्ही जेव्हा असे सहकारी निवडाल तेव्हा तुम्ही तुमच्या यशाकडे जाणारी दिशा निवडलेली असेल हे नक्की. 1962 मध्ये वॉरन बफे दशलक्षाधीश (मिलेनियर) बनले.

equity investments are the riskiest and anyone should reconsider investing

Buffett’s secret to success is his intense focus—instead of doing more, he does less.

Munger observed that it’s a problem to prevent success and wealth from creating your demise. General Motors was the most successful company in the world at one time and then became a victim of its success with large unionization and very tough competition eventually wiping out the shareholders.

Only 2 things matter to get any desired result. Willingness to do and action. The majority fail in executing the second.

Approach everything with integrity. Get comfortable saying no. Do what you love. On integrity, Buffett asked Spier and Pabrai, “Would you rather be the greatest lover in the world yet be known as the worst, or would you rather be the worst lover and be known as the greatest? If you know how to answer that correctly, then you have the right internal yardstick.” Spier said, “Buffett was teaching us to act with the right motivation—because it’s the right thing to do, not because of what people will think.” Buffett believes that highly successful people say no to most opportunities. Spier noted that, “even though he is a kind man at heart, he also has absolutely no trouble enduring the momentary unpleasantness that comes from saying no. As I realized this, I resolved to get a lot better at my own ability to say no.

Buffett’s approach to managing Berkshire’s stock investments has been distinguished by two primary characteristics: a high degree of concentration and extremely long holding periods. In each of these areas, his thinking is unconventional.

5. Live by the sea. 6. Listen to your spirit and find joy. 7. Education, like money, doesn’t make you happy or successful, but it sure helps. 8. Love AND family are the best things we have.

Fechheimer is exactly the sort of business we like to buy. Its economic record is superb. . . . You may be amused to know that neither Charlie nor I have been to Cincinnati, headquarters for Fechheimer, to see their operation. . . . If our success were to depend upon insights we developed through plant inspections, Berkshire would be in big trouble. Rather, in considering an acquisition, we attempt to evaluate the economic characteristics of the business—its competitive strengths and weaknesses—and the quality of people we will be joining. Warren Buffett, annual letter to shareholders, 1985

The ultimate trick is to understand and grasp the fact that whatever we decide in life, we have to be consistent in that and ignore any short term benefits from it. Over a period of time the benefits start compounding and you fetch results for sure. So make sure you use this eighth wonder of the world – its free!

Only 2 things matter to get any desired result. Willingness to do and action.

Neither Jerry nor I believed the efficient market theory. I had overwhelming evidence of inefficiency from blackjack, from the history of Warren Buffett and friends, and from our daily success in Princeton Newport Partners. We didn’t ask, Is the market efficient? but rather, In what ways and to what extent is the market inefficient? and How can we exploit this?

Those that use only fundamental variables refer only to a company's business performance, not the relationship between that performance and its share price. Studies have sorted stocks using returns on equity or on total capital invested, growth in earnings per share, growth in assets—as opposed to sales growth—and various measures of profit margins. Companies with high marks on these variables are successful firms whose shares are inherently attractive to investors. However, consistent with the studies we discussed above, it is often the firms that ranked lowest on these measures—low returns on capital or narrow profit margins—that have tended to generate the highest future market returns.

The people who are most successful are those who are doing what they love.

Effectively all of Warren Buffett’s financial success can be tied to the financial base he built in his pubescent years and the longevity he maintained in his geriatric years.

when we are studying why something got to become as powerful as it has—why an ice age formed, or why Warren Buffett is so rich—we often overlook the key drivers of success.

Life Formulas I (2008) These are notes to myself. Your frame of reference, and therefore your calculations, may vary. These are not definitions—these are algorithms for success. Contributions are welcome. Happiness = Health + Wealth + Good Relationships Health = Exercise + Diet + Sleep Exercise = High Intensity Resistance Training + Sports + Rest Diet = Natural Foods + Intermittent Fasting + Plants Sleep = No alarms + 8–9 hours + Circadian rhythms Wealth = Income + Wealth * (Return on Investment) Income = Accountability + Leverage + Specific Knowledge Accountability = Personal Branding + Personal Platform + Taking Risk? Leverage = Capital + People + Intellectual Property Specific Knowledge = Knowing how to do something society cannot yet easily train other people to do Return on Investment = “Buy-and-Hold” + Valuation + Margin of Safety [72] Naval’s Rules (2016) Be present above all else. Desire is suffering. (Buddha) Anger is a hot coal you hold in your hand while waiting to throw it at someone else. (Buddha) If you can’t see yourself working with someone for life, don’t work with them for a day. Reading (learning) is the ultimate meta-skill and can be traded for anything else. All the real benefits in life come from compound interest. Earn with your mind, not your time. 99 percent of all effort is wasted. Total honesty at all times. It’s almost always possible to be honest and positive. Praise specifically, criticize generally. (Warren Buffett) Truth is that which has predictive power. Watch every thought. (Ask “Why am I having this thought?”) All greatness comes from suffering. Love is given, not received. Enlightenment is the space between your thoughts. (Eckhart Tolle) Mathematics is the language of nature.

As Buffett later highlighted in a celebrated 1984 speech, one could even imagine a national coin-flipping contest of 225 million Americans, all of whom would wager a dollar on guessing the outcome. Each day the losers drop out, and the stakes would then build up for the following morning. After ten days there would be about 220,000 Americans who had correctly predicted ten flips in a row, making them over $1,000. “Now this group will probably start getting a little puffed up about this, human nature being what it is,” Buffett noted.5 “They may try to be modest, but at cocktail parties they will occasionally admit to attractive members of the opposite sex what their technique is, and what marvelous insights they bring to the field of flipping.” If the national coin-flipping championship continued, after another ten days 215 people would statistically have guessed twenty flips in a row, and turned $1 into more than $1 million. And still the net result would remain that $225 million would have been lost and $225 million would have been won. However, at this stage the successful coin flippers would really begin to buy into their own hype, Buffett predicted. “They will probably write books on ‘How I Turned a Dollar into a Million in Twenty Days Working Thirty Seconds a Morning,’ ” he joked.

One way to make yourself less vulnerable to copycats is to build a moat around your business. How Can I Build a Moat? As you scale your company, you need to think about how to proactively defend against competition. The more success you have, the more your competitors will grab their battering ram and start storming the castle. In medieval times, you’d dig a moat to keep enemy armies from getting anywhere near your castle. In business, you think about your economic moat. The idea of an economic moat was popularized by the business magnate and investor Warren Buffett. It refers to a company’s distinct advantage over its competitors, which allows it to protect its market share and profitability. This is hugely important in a competitive space because it’s easy to become commoditized if you don’t have some type of differentiation. In SaaS, I’ve seen four types of moats. Integrations (Network Effect) Network effect is when the value of a product or service increases because of the number of users in the network. A network of one telephone isn’t useful. Add a second telephone, and you can call each other. But add a hundred telephones, and the network is suddenly quite valuable. Network effects are fantastic moats. Think about eBay or Craigs-list, which have huge amounts of sellers and buyers already on their platforms. It’s difficult to compete with them because everyone’s already there. In SaaS—particularly in bootstrapped SaaS companies—the network effect moat comes not from users, but integrations. Zapier is the prototypical example of this. It’s a juggernaut, and not only because it’s integrated with over 3,000 apps. It has widened its moat with nonpublic API integrations, meaning that if you want to compete with it, you have to go to that other company and get their internal development team to build an API for you. That’s a huge hill to climb if you want to launch a Zapier competitor. Every integration a customer activates in your product, especially if it puts more of their data into your database, is another reason for them not to switch to a competitor. A Strong Brand When we talk about your brand, we’re not talking about your color scheme or logo. Your brand is your reputation—it’s what people say about your company when you’re not around.

Smith in his book and with his life is telling us how to live. Seek wisdom and virtue. Behave as if an impartial spectator is watching you. Use the idea of an impartial spectator to step outside yourself and see yourself as others see you. Use that vision to know yourself. Avoid the seductions of money and fame, for they will never satisfy. How to be virtuous is not so obvious, and that comes next. But I want to close this chapter with Peter Buffett, the man who ended up selling his Berkshire Hathaway stock for $90,000 and giving up the $100 million he could have had in order to pursue a career as a musician. A few years ago, Peter Buffett reflected on his decision to sell his Berkshire Hathaway stock to pursue his dreams in his memoir, Life Is What You Make It. He claims to have no regrets. But could a life as a successful musician possibly be worth giving up $100 million? Wouldn’t $100 million be even more pleasant? Then you ask yourself—what could he have with the extra millions? A nicer car? He could have a Lamborghini Veneno Roadster that retails for about $4 million. Or he could settle for the lovely Ferrari Spider, at $300,000; he could have a couple of those. He could have a mansion you and I can only imagine, anywhere in the world. Like Onassis, he could own an island or two rather than enduring the indignity of visiting an island in the Mediterranean, say, and having to share it with others while staying at a nice hotel. Could those physical pleasures possibly be worth sacrificing the life in music that he dreamed of and ultimately achieved? I think Peter Buffett got a bargain. He gave up $100 million and got something—hard as it is to imagine—that was even more precious. A good life. I think Adam Smith would agree with me.

Curbing the financial sector. Since so much of the increase in inequality is associated with the excesses of the financial sector, it is a natural place to begin a reform program. Dodd-Frank is a start, but only a start. Here are six further reforms that are urgent: (a) Curb excessive risk taking and the too-big-to-fail and too-interconnected-to-fail financial institutions; they’re a lethal combination that has led to the repeated bailouts that have marked the last thirty years. Restrictions on leverage and liquidity are key, for the banks somehow believe that they can create resources out of thin air by the magic of leverage. It can’t be done. What they create is risk and volatility.2 (b) Make banks more transparent, especially in their treatment of over-the-counter derivatives, which should be much more tightly restricted and should not be underwritten by government-insured financial institutions. Taxpayers should not be backing up these risky products, no matter whether we think of them as insurance, gambling instruments, or, as Warren Buffett put it, financial weapons of mass destruction.3 (c) Make the banks and credit card companies more competitive and ensure that they act competitively. We have the technology to create an efficient electronics payment mechanism for the twenty-first century, but we have a banking system that is determined to maintain a credit and debit card system that not only exploits consumers but imposes large fees on merchants for every transaction. (d) Make it more difficult for banks to engage in predatory lending and abusive credit card practices, including by putting stricter limits on usury (excessively high interest rates). (e) Curb the bonuses that encourage excessive risk taking and shortsighted behavior. (f) Close down the offshore banking centers (and their onshore counterparts) that have been so successful both at circumventing regulations and at promoting tax evasion and avoidance. There is no good reason that so much finance goes on in the Cayman Islands; there is nothing about it or its climate that makes it so conducive to banking. It exists for one reason only: circumvention. Many

As the “Oracle of Omaha” said, “It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.

Like Wayne Gretzky says, go where the puck is going, not where it is.

The happiest people do not necessarily have the best things. They simply appreciate the things they have.

Passion leads to commitment, which breeds discipline and study, which ultimately leads to success.

Great leaders are not infallible. What makes them great is their willingness to accept and rebound from failure. They see it as just part of the process that eventually leads to success.

Don’t think you can outsmart the market,” he said. “Very few people should be active investors.” The keys to success, he said, are to refrain from buying and selling at precisely the wrong times – as most investors wind up doing – and to avoid the high trading fees that eat up profits. What most people should want is a cross-section of industry that will do well over time. So in the end, the best route for most of us “is to buy a low-cost index fund and to buy it over time.

I’ve found that guys who inherit like that often have a chip on their shoulder. The man brags too much about how successful he is. Somebody who’d earned it probably wouldn’t feel the need. You don’t see Warren Buffett telling everybody how brilliant he is at business. His actions speak for him.

Warren Buffett said, “In the past, I’ve observed that many acquisition-hungry managers were apparently mesmerized by their childhood reading of the story about the frog-kissing princess. Remembering her success, they pay dearly for the right to kiss corporate toads, expecting wondrous transfigurations.” Unfortunately, said Buffett, “We’ve observed many kisses but very few miracles.

The man who does not read has no advantage over a man who cannot read” – Mark Twain

CBS spent much of the 1960s and 1970s taking the enormous cash flow generated by its network and broadcast operations and funding an aggressive acquisition program that led it into entirely new fields, including the purchase of a toy business and the New York Yankees baseball team. CBS issued stock to fund some of these acquisitions, built a landmark office building in midtown Manhattan at enormous expense, developed a corporate structure with forty-two presidents and vice presidents, and generally displayed what Buffett’s partner, Charlie Munger, calls “a prosperity-blinded indifference to unnecessary costs.”1

At age forty-seven, Warren had already accomplished everything he had ever imagined he could want. He was worth $72 million. He ran a company that was worth $135 million.41 His newspaper had won the two highest prizes in journalism. He was one of the most important men in Omaha and increasingly prominent at a national level. He was serving on the boards of the largest local bank, the Washington Post, and a number of other companies. He had been CEO of three companies and had bought and sold successfully more stocks than most people could name in a lifetime. Most of his original partners were now enormously rich. All he wanted was to keep on making money for the thrill of it without changing anything else about his life. He

Warren Buffett, one of the richest men in the world, was once asked his secret of success. He replied, “Simple. I just say no to everything that is not absolutely vital to me at the moment.

I insist on a lot of time being spent, almost every day, to just sit and think. That is very uncommon in American business. I read and think. So I do more reading and thinking, and make less impulse decisions than most people in business. I do it because I like this kind of life.

Materialism in Moderation: The Minimalist Lifestyle of Warren Buffett     This is the home in Omaha that Warren Buffett purchased for $31,500 back in 1957 before he earned his status as a millionaire. This is also the home that Warren Buffett still lives in today, despite his additional wealth.

You can gain great insights about investing from a careful study of Buffett’s Generals. He was constantly appraising the value of as many stocks as he could find, looking for the ones where he felt he had a reasonable ability to understand the business and come up with an estimate for its worth. With a prodigious memory and many years of intense study, he built up an expansive memory bank full of these appraisals and opinions on a huge number of companies. Then, when Mr. Market offered one at a sufficiently attractive discount to its appraised value, he bought it; he often concentrated heavily in a handful of the most attractive ones. Good valuation work and proper temperament have always been the two keys pillars of his success as an investor. Buffett

Sometimes in order for you to move forward in life you need to step away from certain groups of people that are not encouraging you to succeed in life.

Bull markets are immense fun, until they cease to be immense fun.

There is no King of Kings. We all answer to somebody. This includes the world's wealthiest and most powerful people like Bill Gates and Warren Buffett. All of us are Paupers to somebody. We are all somebody's bitch. In a sense, we are in the same boat.

Try to focus on customers flow and business potential the business you are investing in might or might not have, because that is basically the only way you will be certain that you have made a smart decision.