Warren Buffett shares advice on becoming successful

Summary

In this interview, Warren Buffett shares his insights on true success, emphasizing the importance of being loved by those you care about. He advises investing in oneself, particularly in communication skills, and highlights the significance of health and who you associate with. Buffett also offers practical tips on investing, stressing the value of long-term thinking. He discusses his simple lifestyle, preferences in food, and the role of education in career success. The conversation is a blend of personal reflections and business wisdom, revealing Buffett's down-to-earth philosophy on life and success.

Takeaways

• 😊 True success is defined by being loved by the people you want to have love you, especially in later life.
• 💡 The best investment you can make is in yourself, especially by improving communication skills.
• 🚗 Take care of your mind and body as you would if you had only one car to last your lifetime.
• 👥 Surround yourself with people better than you are, as you tend to go in the direction of those you associate with.
• 💍 The most important decision in life is choosing the right spouse, as they will have a significant impact on your happiness.
• 💼 Biggest investing mistake: People trade too much because they can, rather than adopting a long-term mindset.
• 🍔 Warren Buffett eats what he enjoys, following preferences developed by age six, without concern for longevity from diet changes.
• 📚 Not everyone needs to go to college, and advanced education is only valuable if it aligns with your goals and interests.
• 🎵 His favorite song is 'My Way,' and his favorite movie is 'The Bridge on the River Kwai' for its life lessons.
• 💵 Buffett mostly uses cash, carrying around $400, with minimal reliance on credit cards, preferring simplicity in transactions.

Q & A

How does Warren Buffett define true success?

Warren Buffett defines true success as reaching an older age, like 65 or 70, and having the people you want to love you actually love you. He believes that having love from those around you is the key to happiness, more than wealth or accomplishments.

What is Warren Buffett's best piece of advice for success in business?

Buffett's best advice for business success is to invest in yourself, particularly in improving communication skills. He emphasizes that learning to communicate effectively, both in writing and speaking, can increase one's value by at least 50%.

What analogy does Buffett use to explain taking care of your mind and body?

Buffett compares your mind and body to a car that you only get once in your life. Just like you'd take exceptional care of a car you could never replace, you should take great care of your mind and body, starting early and consistently.

Why does Buffett stress the importance of choosing the right people to associate with?

Buffett stresses the importance of associating with people better than yourself because you tend to move in the direction of those you spend time with. Having the right heroes and people to emulate is crucial for personal development.

What does Buffett say is the most important decision regarding personal relationships?

According to Buffett, the most important decision for most people is choosing the right spouse. He advises picking a spouse who is better than you and emphasizes that this choice will significantly affect your happiness and success in life.

What mistake do people commonly make when investing, according to Buffett?

Buffett believes people often make the mistake of trading too frequently because of the ease and low cost of modern trading. He advises investing in things like farms or apartment houses, which are long-term investments, rather than constantly moving investments around.

What does Buffett's daily breakfast routine reveal about him?

Buffett humorously mentions his routine of eating what he likes, such as hot dogs, hamburgers, and ice cream, which he has enjoyed since childhood. He doesn't care about changing his diet for longevity, preferring to stick with what he enjoys.

What is Buffett's opinion on the value of a Business School education?

Buffett believes the value of Business School depends on the individual more than the school itself. He doesn't think advanced education is necessary for everyone and advises considering one's interests and career path before committing to college or advanced degrees.

What does Buffett consider his favorite book and why?

Buffett's favorite and most impactful book is 'The Intelligent Investor' by Benjamin Graham. He credits it with having the most significant influence on his life and investment philosophy.

How does Buffett typically pay for things, and what does he carry in his wallet?

Buffett usually pays in cash, carrying around $400 at a time, as his wife prefers to use cash. He also has an American Express card from 1964 but uses it sparingly, paying cash 98% of the time.

Outlines

00:00

💖 Defining True Success

Warren Buffett defines true success as reaching an old age where the people you want to love you, genuinely do. He emphasizes that no matter how wealthy someone is, if they aren't loved by those around them, they can't be truly happy. He contrasts this with examples of wealthy individuals who, despite their material success, lack meaningful relationships, which leaves them unfulfilled.

05:00

📈 Best Advice for Business Success

Buffett stresses the importance of investing in oneself, particularly in communication skills. He points out that the ability to effectively communicate can significantly increase one’s value, both personally and professionally. He shares a humorous anecdote about taking a Dale Carnegie course to improve his communication, which has helped him immensely. Additionally, Buffett offers a metaphor, urging people to care for their mind and body as they would for a car they expect to last a lifetime, implying that it’s essential to maintain oneself from an early age.

👥 The Importance of Associations and Role Models

Buffett offers life advice centered on the significance of associating with people better than oneself. He highlights the importance of carefully choosing heroes and role models to emulate. While parents have a strong influence on one's early life, Buffett emphasizes the importance of selecting a spouse and business partners wisely, as they will have the most substantial impact on one’s life. He humorously adds that one should hope their spouse doesn't realize too soon that they're the better partner.

💼 Common Mistakes in Investing

Buffett addresses the frequent mistakes people make in investing, such as the tendency to over-trade due to the ease and liquidity of the stock market. He contrasts this with investments in tangible assets like farms or apartment buildings, which require more thoughtful, long-term commitment. He argues that liquidity often leads investors to make impulsive decisions that aren’t always in their best interest.

🍔 Buffett’s Eating Habits

Buffett shares his eating preferences, revealing that he has eaten the same foods he enjoyed as a child, such as hot dogs, hamburgers, Coca-Cola, and ice cream. He humorously dismisses the idea of eating healthy just to live an extra year, suggesting that the last year may not be worth the sacrifice of enjoying the foods he loves. His lighthearted comments highlight his belief in living life according to one’s own preferences.

🎓 Is Business School Worth It?

Buffett offers his perspective on the value of business school, noting that its benefits depend more on the individual than the institution. He believes that college and advanced education are not necessary for everyone and that many well-paying jobs do not require a college degree. He shares his own reluctance about attending college, stating that his father encouraged him to go, but he didn’t see much personal benefit at the time.

⚡ Lightning Round: Personal Preferences

In a quick-fire round of questions, Buffett shares some personal details. He admits to drinking water only under duress and names 'My Way' as his favorite song. His favorite movie is 'The Bridge on the River Kwai' due to the life lessons it offers, while 'The Intelligent Investor' by Benjamin Graham is his favorite book for its impact on his life. He also reveals that he carries around $400 in cash, with his wife managing the household finances.

Keywords

💡Success

Success, as defined by Warren Buffett in the video, is not measured by wealth or accolades but by the love and relationships one cultivates. He emphasizes that if, by the age of 65 or 70, the people you want to love you actually do, then you are successful. This concept relates to the overarching theme of prioritizing meaningful connections over material gains.

💡Investment in Yourself

Buffett highlights that the best investment anyone can make is in themselves, particularly in developing communication skills. He argues that improving one’s ability to communicate can increase their value by at least 50%. This idea connects to the broader message of personal growth and self-improvement as critical to success in both business and life.

💡Communication Skills

Buffett underscores the importance of communication skills, both in writing and in person, as essential for success. He believes that many people undervalue this ability, even though it can significantly enhance one’s effectiveness in business. He mentions taking a Dale Carnegie course to improve his own skills, emphasizing how essential it is to convey ideas clearly.

💡Health

In the video, Buffett advises treating your mind and body as you would a valuable car that you only get once in life. He stresses that taking care of one’s physical and mental health is crucial, and that neglecting it, especially until old age, will lead to deterioration. This message encourages long-term self-care and maintaining well-being as foundational to a successful life.

💡Association

Buffett highlights the importance of surrounding yourself with people who are better than you, as their influence will help shape the direction of your life. This concept of 'association' ties into personal development and the idea that the people you spend time with can have a profound impact on your character and decisions.

💡Heroes

Buffett advises choosing heroes wisely, as they serve as role models in shaping your character and aspirations. He points out that while you can't choose your parents, you can choose who you admire and emulate. This reflects his belief in the power of mentorship and the importance of looking up to the right people for guidance.

💡Spouse

Buffett considers choosing a spouse to be one of the most important decisions a person can make in life. He suggests selecting a partner who is 'a little better than you,' as this choice will have a profound influence on your happiness and personal growth. This highlights the idea of personal relationships being central to one’s well-being and success.

💡Mistakes in Investing

Buffett identifies one of the biggest mistakes people make in investing: the urge to frequently trade due to the liquidity and ease of moving money. He contrasts this with buying long-term assets like a farm or apartment house, which are not as easily sold. This advice ties into the theme of patience and long-term thinking in investment strategies.

💡Education

Buffett expresses a nuanced view on education, suggesting that it is not essential for everyone to attend college or business school. He emphasizes that the value of education depends on the individual, and that practical skills like investing and learning from experience can sometimes outweigh formal schooling. This reflects his belief in tailored personal growth paths.

💡Personal Habits

Buffett’s personal habits, such as his unchanging eating preferences and his approach to daily routines, are mentioned in the video as an example of his straightforward, unadventurous lifestyle. He humorously mentions his love for foods like hamburgers and Coca-Cola since childhood, reflecting his belief in sticking with what makes him happy, even if it’s unconventional.

Highlights

True success is when, at age 65 or 70, the people you want to love you, actually do.

Wealth without love brings no happiness, regardless of material achievements.

The best investment you can make is in yourself, especially in communication skills.

Improving communication skills, both in writing and speaking, can increase your value by at least 50%.

Taking care of your mind and body is critical, as you only have one of each for life.

Associating with people better than you will influence you positively.

Choose carefully who you admire and emulate, especially when picking a spouse or partner.

People make mistakes in investing by thinking they need to trade frequently.

The ease of trading in markets can lead to over-trading, which is often not wise.

Warren Buffett enjoys eating the same foods he liked as a child, such as hamburgers, hot dogs, and ice cream.

Buffett does not believe everyone needs to go to college; it depends on the individual's goals and needs.

College is not for everyone, and many high-paying jobs do not require a college degree.

Warren Buffett's favorite song is 'My Way.'

Buffett's favorite book, and the one that had the most impact on him, is 'The Intelligent Investor.'

He typically carries around $400 in cash and prefers to pay with cash most of the time.

Transcripts

Warren how would you define true success

well I've said many times that that if

you get to be 65 or 70 and later and and

the people that you want to have love

you actually do love you you're a

success I've never seen anybody that

reaches that age I mean I'm not talking

about somebody that's extreme poverty or

painters I'm gonna never seen anybody

that if they have a lot of people that

love them that there's other than happy

and I've seen some very very wealthy

people that they can testimonial dinners

doing named schools have sir and

everything there is nobody nobody loves

him you know their own kids would say

he's in the Attic he's in the Attic you

know okay what are say three pieces of

advice you would give to people who are

looking to succeed in business well I

by far the best investment you can make

is in yourself I mean that for example

communication skills I tell the students

that come that they're going to graduate

schools and business and they're

learning all these complicated formulas

all that if they just learned to

communicate better and both in writing

and person they increase their value at

least 50% no I mean if you can't

communicate somebody he says you know

it's like winking at a girl the dark

nothing happens you know basically and

and you have to be able to get get both

your ideas and and that's that's

relatively easy I did it myself with a

Dale Carnegie of course some people wish

I'd take it a shorter course not by

talking later on but it it's just hugely

important and you if you invest in

yourself nobody can take it away from

you I mean you and the second thing

which I'll get a certain criticism for

not living it but but I do tell the

those students you know that if I gave

you a car and it'll be the only car

you're getting them rest of your life he

take care of it like you can't believe

and he scratch you'd fix that moment you

read the owner's manual you keep it

garage into all these things and you get

exactly one mind of one and one body in

this world and and you can't start

taking care of it when you're 50 by that

time you little rust it out if you

haven't done anything so you know you

should

is really make sure that you just

remember that you just got one minor

body to get through life with him did it

do the most with it what about life

advice

well I've advises you know the most

important thing aside from the things

I've talked about already is it's really

who you associate with you want to

associate with people that are better

than you are

I mean basically you'll go in the

direction of the people that you

associate with and and you want to have

the right heroes you want people if you

want to emulate somebody you better pick

very carefully who you want to emulate

and and when obviously you can't pick

your parents they're gonna have an

enormous influence on you but you don't

get a choice on that but you get choices

as you go down the line and you who you

who you admire who you who you want to

copy and the most important for most

people in terms of that decision is

their spouse it's also important to in

terms of a partner in business but the

partner in life is is the most important

you'll you want to pick a spouse that's

little better than you are and then he

or she and you hope they don't figure it

out too fast

great biggest mistakes people make when

investing well they they try to but they

they just don't realize that all you

have to do is just buy across the shin

of America and they never listen to

people like me or read the papers or do

anything subsequently they think they

think that because you can trade you

should trade they but you buy a farm you

buy an apartment house so you can't

resell it tomorrow I don't know the

costs of moving around or you now you

get something handed to you liquidity

you know which is instant and so and the

the cost of doing it or pennies you know

compared to other kinds of investment

activity so because they can so easily

move around they do move around and

moving around is not smarter than

investing you have a pretty cool morning

routine regarding what you have for

breakfast and how prosperous you feel

what is that well that way and and I was

actually send somebody over to them now

to get me something since since I sent

the publicity I

from earlier describing my habits at

McDonald's hey I know somebody happened

had somebody go in the office but that

was that was a more for entertainment

value I I actually I eat exactly what I

like to eat yep

if I liked it on my sixth birthday and

my sixth birthday party when we had hot

dogs and hamburgers and coke and ice

cream with chocolate I still like it and

I don't care about anything subsequently

that I discovered it all by the time I

was six and if somebody offered me a

deal when I was 20 and said you're gonna

live one year longer you know instead of

living to 88 you lived 89 or whatever it

may be if you eat nothing but broccoli

and Brussels sprouts and onions and all

these things and I I didn't take the

last year off it probably won't be that

good anyway you know I Manso I eat what

I like the III

I I am NOT venturesome in that area

like how you lumped in onions with

broccoli and Brussels sprouts never

heard them I just don't have like onions

I don't put them in the same category

you and George HW Bush I think it's

Business School worth it depends on the

person and much more than it depends on

the school I mean I wouldn't worry some

people are gonna get a lot out of

advanced education and some people are

gonna get very little and I don't even

think it's important that every person

go to college at all I'm you know we

have all kinds of jobs at 70 or so

thousand a year eighty thousand a year

that college training is is not abuse

and and I actually was not keen on going

to college myself yeah my dad kind of

jolly man when he can get me to do

anything but and if they'd had an SAT

test those days he would have taken the

test for me yeah but but because I just

I was I knew I could have a good time

and I liked investing and I didn't

really feel like I could read the books

so I don't you know it's it's a big

commitment to take four years and the

cost involved and maybe the loans

involved that everything I think

depending on

what your interests are in life I don't

think I don't think it's for everybody I

think it's for a lot of people but there

ought to be a reason you're going and I

didn't really see much reason

all right last questions the lightning

rounds there's a few do you ever drink

water only under duress what is your

favorite all-time song it's undoubtedly

it's my way

what about movie favorite movie well I

like the Bridge on the River Kwai

because of the lot there were a lot of

lessons in that pleasant was a you know

enormous Lee fascinating catchy tune

also catchy tune also the ending of that

was sort of the story of life you know

he created the railroad the enemy did

come in across it you know it got it

favorite book well the favorite book

from the best book that had the most

impact on my life was the Intelligent

Investor by bedroom I knew you were

gonna say that

favorite TV show it's probably going to

be Nebraskans some huge bowl gave him

winning and finally what are you carry

in your wallet and how much money do you

tend to carry around well I probably

carry maybe $400 oh yeah I actually my

what my wife likes to use a cash so I

just take home a chunk of cash every now

and then she doles it out she looks at

my billfold and sees whether all the

hundreds are gone six of you it's pretty

simple and a credit cards I've got an

American Express card which I got in

1964 but I I pay cash 98% of the time if

I'm an arrest always pay cash it's just

easier Warren Buffett thanks very much