22 Life Changing Lessons From Warren Buffett
Summary: The Oracle of Omaha is a font of wisdom. He is perhaps the most successful investor in history. So he knows a lot of lessons we can all benefit from. Here are 22 life-changing lessons from Warren Buffett.<br> Warren Buffett quotes are almost as good as Yogi Berra quotes. Whether you want some words of wisdom on investing or how not to be a better person, there are Warren Buffett quotes to guide you.<br> On Risk<br> 1. “Risk comes from not knowing what you’re doing.”<br> 2. “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.”<br> 3. It is not necessary to do extraordinary things to get extraordinary results.<br> 4. After all, you only find out who is swimming naked when the tide goes out.<br> “It is not necessary to do extraordinary things to get extraordinary results.”<br> So many people delay investing because they think they need to understand how it all works or to have lots of money before they can get started. You don’t. You can go to <a href="https://www.listenmoneymatters.com/go/betterment-review-link/">Betterment</a> right now with zero knowledge of investing and almost zero dollars (there is no minimum) and get started.<br> Just do it. Do it now. Time is ticking, and the most powerful force in personal finance is compounding interest, but it needs time to work its alchemy.<br> This quote is accurate for lots of aspects of life. You don’t have to do an extraordinary amount of exercise to improve your health nor do you have to be an extraordinarily gifted athlete to get started. You don’t have to write a remarkable <a href="https://www.listenmoneymatters.com/creating-killer-job-resume-mark-fiebert/">resume</a>, the greatest resume ever crafted, to land an extraordinary job. But you do have to send out resumes.<br> You don’t have to be extraordinarily attractive or have an extraordinary game to ask that cute girl or boy out and find extraordinary love. To get extraordinary results, you just have to do a lot of normal things in the right direction.<br> “Risk comes from not knowing what you’re doing.”<br> There is a vast difference between risk and calculated risk. But the only difference is research and preparation. It is risky to quit your job and start a new business. It is a calculated risk to do enough research to know that there is a demand for your business and to continue working your 9-5 until your business starts to make money.<br> It is a risk to invest in a company you know nothing about or a product you don’t understand. It is a calculated risk to research a company’s debt to equity ratio, price to earnings ratio, and who makes up the leadership and then decide whether or not to invest.<br> Value<br> 1. Price is what you pay. Value is what you get.<br> 2. It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.<br> 3. The investor of today does not profit from yesterday’s growth.<br> 4. Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.<br> “Price is what you pay. Value is what you get.”<br> One of my personal finance lessons is Vimes theory of boots. It explains how poor people spend more money on things over time than rich people because rich people can spend more up front for things of better quality that last longer. Poor people have to buy the cheapest option available, and those cheap options have to be replaced more often than better quality ones.<br> If you have to make a fairly expensive purchase, furniture, appliances, a computer, get the best available, which is not necessarily the most expensive, even if you have to save up for it. <a href="https://www.reddit.com/r/BuyItForLife/">Buy it for Life</a> is a great resource to get advice on making ...
