Warren Buffett Motivation: 10 rules for Success
Summary
TLDRThis video script offers insights into Warren Buffett's top ten rules for success, drawn from his early ventures to his rise as a legendary investor. Buffett emphasizes the importance of loving your work, understanding accounting, delighting customers, conquering fears, and sticking to your expertise. He also stresses the significance of reading, maintaining a good reputation, choosing to embody admirable qualities, and learning from mistakes. The script is a motivational guide designed to inspire viewers to incorporate these principles into their own paths to success.
Takeaways
- 😀 Warren Buffett's early ventures included selling Coca-Cola door-to-door and newspapers, which he enjoyed for the independence and business experience it provided.
- 📚 The importance of understanding accounting is emphasized as it is the language of business, crucial for making informed decisions and evaluating businesses.
- 🔄 Buffett highlights the value of learning from failures and having a genuine desire to delight customers, which is a key to business success.
- 🗣️ Overcoming fears, such as public speaking, is vital for personal and professional growth, and Buffett credits the Dale Carnegie course for helping him conquer his fear.
- 🛠️ Doing things your way and having autonomy in your work can lead to greater satisfaction and success, as exemplified by Buffett's management style at Berkshire Hathaway.
- 🏹 Sticking to your area of expertise is crucial for making sound investment decisions and avoiding ventures outside your circle of competence.
- 📖 Reading extensively has been a significant part of Buffett's life from a young age, contributing to his knowledge and success in investments.
- 🤝 Maintaining a good reputation is paramount, as it can be lost quickly and is difficult to rebuild, affecting all aspects of business.
- 🌟 Be the person you want to be by adopting qualities you admire in others and avoiding those you dislike, as these traits can significantly impact your personal and professional relationships.
- 🔄 Learning from mistakes is an essential part of growth, and Buffett's experience with Berkshire Hathaway and US Air illustrates the importance of recognizing and learning from poor decisions.
- 🎓 The Dale Carnegie diploma is the only diploma displayed in Buffett's office, signifying the life-changing impact of the public speaking course on his success.
Q & A
What was the speaker's early experience with business?
-The speaker started selling stocks at the age of 20 and had been involved in various business activities from a young age, such as selling Coca-Cola door-to-door and delivering newspapers.
Why is understanding accounting important according to the speaker?
-Understanding accounting is crucial because it is the language of business. Not knowing accounting is like being in a foreign country without knowing the language, which can hinder one's ability to effectively operate in business.
What is the significance of delighting customers in business success?
-Delightingly customers is essential because it ensures customer retention and satisfaction. The speaker emphasizes that businesses that consistently delight their customers are more likely to succeed.
How did the speaker overcome his fear of public speaking?
-The speaker overcame his fear of public speaking by enrolling in a Dale Carnegie course, which helped him develop his public speaking skills and gain confidence.
What is the speaker's philosophy on doing things in his own way?
-The speaker believes in the importance of autonomy and doing things one's own way. He values the freedom to make decisions without external interference and finds joy in being his own boss.
Why is sticking to one's area of expertise important in business?
-Sticking to one's area of expertise is important because it allows for better decision-making and valuation of businesses. The speaker advises focusing on what one understands well rather than trying to be an expert in every field.
How does the speaker emphasize the importance of reading?
-The speaker highlights the importance of reading by sharing his own experiences of reading extensively from a young age. He believes that reading is a key to gaining knowledge and understanding various aspects of business and life.
What is the speaker's advice on maintaining a good reputation in business?
-The speaker advises that maintaining a good reputation is paramount. He emphasizes that Berkshire Hathaway values its reputation highly and that any business decision should be able to withstand public scrutiny.
What qualities should one develop to be the person they admire?
-The speaker suggests developing qualities such as an upbeat attitude, generosity, humor, and being considerate of others. He advises reflecting on the qualities one admires in others and striving to embody those traits.
What is the speaker's view on learning from mistakes?
-The speaker believes that learning from mistakes is crucial for growth. He shares his own experiences of making mistakes in business, such as buying Berkshire Hathaway, and how those experiences taught him valuable lessons.
What is the speaker's advice on choosing a business to invest in?
-The speaker advises investing in wonderful businesses at a fair price rather than fair businesses at a wonderful price. He emphasizes the importance of time being a friend to wonderful businesses, allowing for compounding growth.
Outlines
🚀 Embracing Challenges and Learning from Warren Buffett
The speaker reflects on the importance of stepping out of one's comfort zone, as exemplified by their own experiences standing on tables and engaging in unfamiliar activities. The paragraph introduces Warren Buffett's top ten rules for success, emphasizing the value of self-motivation and learning from successful investors. The speaker also mentions a series designed to build confidence and encourages viewers to join for daily motivation, with a link provided in the description. The narrative highlights the significance of surrounding oneself with people who inspire growth and the importance of understanding accounting as a fundamental business language.
📈 Understanding Accounting and Customer Delight
This section delves into the necessity of comprehending accounting for business success, likening it to the necessity of knowing a foreign language. The speaker shares Buffett's advice on the importance of understanding the customer and the value of continuous learning from failures. The emphasis is on delighting customers to ensure repeat business and creating memorable experiences that go beyond the price of products or services. The speaker also discusses the significance of conquering fears, particularly public speaking, and the transformative effect of the Dale Carnegie course on their life and career.
🛠 Doing Things Your Way and Sticking to Your Expertise
The paragraph discusses the importance of autonomy in one's work, drawing parallels between the speaker's and Buffett's approach to running their businesses. It highlights the joy of being one's own boss and making independent decisions, as well as the value of allowing others to operate in the same manner. The speaker also touches on the significance of staying within one's area of expertise, using the example of not investing in technology companies due to a lack of understanding. The narrative reinforces the idea that success comes from focusing on what one knows best and values the intellectual process of defining one's competence.
📚 The Power of Reading and Maintaining a Good Reputation
The speaker shares Buffett's love for reading and how it has shaped their understanding of investment and business. The paragraph emphasizes the importance of reading extensively to gain knowledge and insight. It also discusses the significance of maintaining a good reputation, using Berkshire Hathaway's ranking as an example. The speaker stresses the idea that reputation is more valuable than money and that all business actions should withstand public scrutiny. The narrative underlines the fragility of reputation and the need to protect it at all costs.
🌟 Becoming the Person You Admire and Learning from Mistakes
In this section, the speaker encourages viewers to adopt the qualities of the people they admire and to avoid the traits of those they dislike. The paragraph discusses the idea of self-improvement and the ability to choose the kind of person one can be. It also touches on the concept of learning from mistakes, using Buffett's experience with Berkshire Hathaway as an example of a significant error that taught valuable lessons. The speaker shares a special bonus clip on finding one's gift and concludes with a call to action, prompting viewers to reflect on their fears and take steps to overcome them.
🎓 The Impact of Dale Carnegie's Course and a Competitive Spirit
The final paragraph reflects on the profound impact of the Dale Carnegie course on the speaker's life, highlighting the importance of public speaking and personal development. It also touches on the speaker's innate competitiveness and inquisitiveness from a young age, which contributed to their success. The paragraph concludes with a reference to a related video about Warren Buffett, inviting viewers to explore more about his life and insights.
Mindmap
Keywords
💡Accounting
💡Customer Delight
💡Fear Conquering
💡Doing Things Your Way
💡Area of Expertise
💡Reading
💡Reputation
💡Personal Qualities
💡Learning from Mistakes
💡Motivation
💡Investing
Highlights
The importance of stepping out of one's comfort zone to experience personal growth.
The necessity of understanding accounting as the language of business for success.
Warren Buffett's early ventures in business, selling various products door-to-door.
The significance of compounding interest and its role in wealth accumulation.
Buffett's emphasis on learning continuously and adapting to business environments.
The value of customer satisfaction and its impact on business success.
Overcoming the fear of public speaking through the Dale Carnegie course.
The concept of doing things one's own way and the autonomy it provides.
The benefits of working in one's area of expertise for better decision-making.
The power of reading and continuous learning in personal and professional development.
Maintaining a good reputation as a cornerstone of business and personal conduct.
The importance of being the person you admire rather than the one you dislike.
Learning from mistakes, such as Buffett's experience with Berkshire Hathaway.
The preference for buying wonderful businesses at fair prices over fair businesses at wonderful prices.
The pitfalls of investing in businesses without a deep understanding, exemplified by the US Air investment.
The special bonus clip on finding one's gift according to Warren Buffett.
Actionable steps to conquer fears and the importance of taking small steps towards overcoming them.
The significance of numbers in Warren Buffett's life and his competitive nature from a young age.
The impact of the Dale Carnegie course on Buffett's life and his recommendation for others.
Transcripts
they made us do all these crazy things
to get out of ourselves and so we stood
on tables and did all kinds of things I
hadn't have done that my whole life
would have been different you have to
understand accounting like being in a
foreign country without knowing the
language if you're in business and you
don't understand the county by our
school I started selling stocks that was
20 years old of the taemin need
motivation watch a top 10 with believe
nation what's that believe me Shannon 7
I believe in you and this channel is
designed to be a part of your daily
success routine so let's get your
motivation to attend and get you
believing in you grab a snack and chew
in today's lessons from men who went
from being interested in investing at an
early age then going on to selling
newspapers and pinball machines to
becoming one of the world's most
successful investors and richest people
on the planet he's Warren Buffett and
here's my take on his top ten rules to
success volume 3 also if you want to
know what Warren Buffett and other
successful entrepreneurs have to say
about building unstoppable confidence
check out my 250 for confidence series
where every day for the next 254 days I
will send you a morning video for free
to help you build your confidence the
link to join is in the description below
it's important to so shave with people
that are better than yourself
okay let's kick it off with rule number
one love the game the allowance when I
was a little boy was a nickel a week but
I like the idea of having a little more
than ten decloaking to work with then I
went into business very early they
started selling coca-cola door-to-door I
sold gone door-to-door so Saturday folks
Liberty magazine ladies home surely his
name it I think I enjoyed the game
almost right from the start but I like
being my own boss that's one thing I
liked about delivering papers I got
arranged the route I wanted nobody was
bothering me at 5:00 or 6:00 in the
morning
[Music]
I was delivering 500 papers a day and I
made a penny of paper but in terms of
compounding is had penny surged into
something else
rule number two understand accounting
people ask me what they should take in
business school and and and or even if
they don't go to business school what
they need to know before getting in
business and I tell them you know you
have to you have to understand
accounting it's the language of idiot it
would be it's like being in a foreign
country without knowing the language if
you're in business and you don't
understand accounting so it it you want
to get as comfortable with that as you
are with the English language it it's
made me a lot of money because I I
listen to what Ray Dean had to say fifty
three or four years ago and have been
able to understand what I was seeing on
pieces of paper what that told me about
businesses and the limitations of what
it told me about businesses rule number
three the light customers Henry Ford as
you may know failed twice before he
started the Ford Motor Company in 1903 I
mean the the test isn't whether you get
the greatest does this idea in the world
the first time out the test is whether
you keep learning as you go along what
your strengths are and what you can do
for your customers what you can bring
especially to the party and to do that
you need a genuine a genuine desire
day-in day-out to delight the customer
I've never I've never seen a business
I've seen a lot of businesses but I've
never seen one that delight the customer
that that doesn't succeed I mean what
you want is that customer the next day
when they think do I want to rent a car
or do I want to buy some furniture what
goes through their mind you know it's
the place where they've had a great
experience um I don't know what I paid
for this type actually probably if
somebody gave it to me proof of the
purpose
of the speech I will say I I have no
idea but why they are the shirt I'm
wearing others but I do know I will
remember how I was treated what I bought
it I mean you long forget about the
price but you never forget whether you
have a good experience or a porridge
furnace with the purchase experience
rule number four conquer your fears
somebody once said that the chains of
habit or too light to be felt until
they're too heavy to be broken I had
been terrified of public speaking I
couldn't do it man throw up and I know
if I didn't cure it then they never
cured
and so I so I'd add in the paper to the
Dale Carnegie course which worked on
developing your ability to speak in
public and I went down there be thin a
good mile has the same effect as a puppy
field what a puppy wait they made us do
all these crazy things to get out of
ourselves and so we stood on tables and
did all kinds of things
I hadn't have done that my whole life
would have been different so in my
office you will not see the degree I got
from the University of Nebraska they'll
not say the master's degree from
Columbia University but you'll see the
little wart certificate I got from the
Dale Carnegie course rule number five do
things your way I'm 72 I'm getting
Social Security now so you know I write
it
I should be in Florida you know pushing
shuffleboard around or something of the
sort but but but I do what I can do
anything in the world I want to do but
what I want to do is run Berkshire
Hathaway now why do I want to run it
that way I get to paint my own painting
you know I go down there every day and I
feel like you know I feel like
Michelangelo there you know working on
the Sistine Chapel or something nobody
else may think it's a great painting but
I get to paint my own painting I do not
have people second-guessing me I do not
have B people saying why don't you use a
little more red paint than blue paint
why don't you paint a seascape instead
of Oh landscape I get to do my own thing
it's it's it's a form of creativity it's
it's exactly like somebody feels it's a
professional golfer or somebody feels
it's a painter they're not doing it for
the money primarily they're doing it
because they like doing something well
we've got a company flight safety with
it trains more pilots than anybody in
the world flight safety is run by an 85
year old man al Yoshi al started the
company and with $10,000 in 1951 it now
trains four or five times as many pilots
as that not military pilots as any as
anybody in the world and he is there at
85 and then it's a matter of public
record he's got a billion dollars worth
of Berkshire shares he works seven days
a week he loves him and he loves it for
the same reason that I love what I do he
gets to do it his way
he buys these big simulators that did
you train pilots and he doesn't have to
check with me as to whether to spend
fifteen million dollars for a simulator
he doesn't ask me he knows so much more
about it and you know but I do why in
the world would he ask me what I can't
tell what kind of a plane I bet you know
flying around and and alice is spending
a couple hundred million dollars a year
on simulators spending Berkshire
Hathaway money and he never checks with
Omaha he's never had to come to Omaha
for any kind of meetings he runs his own
business and that's what he loves in
life and I let him do it I mean that's
my contribution to it is is really
turning loose his energies and you know
they were properly directed before we
bought the company seven or eight years
ago why don't why should I think that
you know he couldn't keep running after
that and like I say at 85 he's still not
yet and that feeling of ownership is
really extraordinary and it's so much
better I mean it's the way I like to
work and it's the way you know it's the
way
sozin jock likes to work it's the way a
Yoshi likes to work rule number six
stick to your area of expertise I don't
need to be in Washington to figure out
what the Washington Post newspaper is
worth and I don't need to be in New York
to figure out what some other company is
work that's it's it's simply it's an
intellectual process and unless the most
static there is in that election process
really the better off you are what is
the intellectual process intellectual
processes is defining your level
defining your area of competence and
valuing businesses and then within that
area of competence finding whatever
sells at the cheapest price in relation
to value and there are all kinds of
things I'm not competent to value well
there are few that I'm a developer have
you ever bought a technology company no
I really haven't in 30 years of
investing not one I haven't understood
any of mine so you haven't ever boned
for example IBM when everyone
marv a company I made a sensational
company but I haven't known IBM and so
here is this technological revolution
going on and you're not gonna be a
participant right past me
is that all right with you it's okay
with me I don't have to make money in
every game I mean I don't know what
cocoa beans are gonna do I don't know I
kind of things I don't know about and
that may be too bad but you know why
should I know all about them having
worked that hard on insecurities
business you literally every day have
thousands of the major American
corporations offered you at a price and
a price that changes daily and you don't
have to make any decisions you have to
make that nothing is forced upon you so
you there are no called strikes in the
business the pitcher just stands there
and throws balls at you and if you're
playing real baseball and it's between
the knees and the shoulders you either
swing or you've got a strike called I
need to get too many calls I knew you're
out in the securities business you sit
there and they throw us steal a 25 and
they throw general motors at 68 you
don't have to swing at any of them they
may be wonderful pitches to swing at but
if you don't know enough you don't have
to swing and you can sit there and watch
thousands of pitches and finally you get
water right there where you want it
something that you understand and then
you swing and so you might not swing for
six months I might not swing for two
years rule number seven read a lot I
like to read more than most kids I
really like to read a lot
my auntie knee gave me a copy of the
World Almanac and that was heaven to me
and I can still tell you the thing
almost population was 214 thousand and 6
in 1930 some numbers just gotta stick
with you and very early probably when I
was 7 or so I took this book out of the
Benson library called a thousand ways to
make a thousand dollars
and one of the ways in this book was
having penny weighing machines
[Music]
and I sat and calculated how much it
would cost to buy the first weighing
machine and how long it would take for
the profit but that one to buy another
one I would sit there and create these
compound interest tables to figure out
how long it take me to have a weighing
machine for every person in the world
first books that read on investment
we're actually in my dad's office pretty
soon I read all the books in the office
and read some of them more than once a
few years ago I went to Amazon and sure
enough they had this manual there so
well reliving my youth other guys were
going to Amazon probably in and buying
old Playboy's or something but I bought
old movies manuals instead and when I
got school I started selling stocks that
was 20 years old at the time and looked
about 16 and acted about 12 so I was not
the most impressive salesperson anybody
ever met but what I would do was I went
through page by page looking for
possibly unvalued socks rule number
eight maintain a good reputation
leadership at Berkshire really consists
of taking a bunch of people who in a
baseball analogy would be four hundred
hitters and just handing them the bat
and just telling them to get up the
plate and take a big swing there's very
little to it beyond that one thing I do
is I send them a letter the only thing I
tell them and this letter which went out
January 20th 2003 it says it's been two
and a half years since my last metal now
how many big companies have managers out
there two and a half years since my last
memo here are a couple things to keep in
mind and number one and this is number
one every time though this doesn't
change it won't change two years and now
or four years from now or six years
number one we can afford to lose money
even a lot of money we cannot afford to
lose reputation even a shred of
reputation let's be sure that everything
we do in business can be reported on the
front page of a national newspaper in an
article written by an unfriendly but
intelligent reporter in many areas
including acquisitions berkshires
results of benefit of
reputation and we don't want to do
anything that in any way can tarnish it
last year Berkshire was ranked by
fortune as the fourth most admired
company in the world this year we were
third in the United States they just
published it
it took us 37 years to get there but we
could lose it in 37 minutes and that's
the message I mean we you know we can't
lose money it doesn't you know nicer to
make money but we've got we'll figure
out ways to make money but we can't lose
it we can't lose a shredder reputation
because you don't get it back and you
can I said 37 minutes but you couldn't
lose it a lot faster than that you can
lose it in five minutes
rule number nine be the person you want
to be if you look around you at the
people you admire you know they have
certain qualities I mean you've got
you've got friends why do you like them
you know generally you know that they
generally they have an upbeat attitude
on life generally they're generous
people they're humorous people there are
people that do more than their share
they're people that are thinking about
something nice they can do for you and
all of those qualities attract you and
none of those are our innate at Birth I
mean you you can acquire those and then
there's other people to turn you off you
know and they have habits they take
credit for things they didn't do they
don't show up on time whatever it may be
they're little dishonest about things
and if you're looking at your life at a
young age like you are and you can
choose what kind of a person you can be
why not be the person you admire rather
than the person you can't stand it's so
simple so just write down the qualities
you like take you to take your five best
friends why do you like them and just
write down those qualities and you will
find there's no quality there that you
can't have yourself and similarly with
the five people you can't stand to be
around put those put those things down
the turn you off about those people and
if they turn you off about them why
should you possess them you're gonna
yeah it's so simple you know it's it's
not it's it's not like it's not like
something complicated that you think you
should be learning with an advanced
degree educated as investing in the
stock market it's it's enormous ly
important to have people work with you
in life they're gonna work with you in
life if they like you and they may
occasionally I mean if you're in the
army or something you know you may work
for somebody that you don't like but by
and large you're gonna get the best out
of people if they feel good about you
and it's just so easy but you've got to
develop the habits early because you
can't say I'm gonna suddenly become a
terribly attractive person when I'm 60
it just doesn't work that way
so pick up the right habits now and I
will guarantee you if you actually just
write down those qualities and think
about it you will find you can have
every one of the attractive qualities
get rid of the ones that are are
negative and your life will be different
and rule number ten the last one before
a very special bonus clip is learn from
mistakes a lot of mistakes mistake not
the biggest necessarily the biggest but
but buying berkshire hathaway itself was
a mistake because berkshire was a lousy
textile business and I brought it very
cheap I've been taught by Ben Graham to
buy things on a quantitative basis look
around for things that are cheap and
that I was taught that and say a 1949 or
say they made a big impression on me so
I went around looking for what I call
you cigar butts of stocks and the cigar
butt approach to buying stocks is that
you walk down the street and you're
looking around for cigar butts and you
find this honestly this terrible looking
soggy ugly looking cigar the one puff
left in it but you pick it up and you
get your one puff disgusting you throw
it away but it's free I mean it's cheap
and then you look around for another
soggy you know one puff cigar well
that's what I did for years it's a
mistake you make money doing it but he
can't make it with big money it's so
much easier just by wonderful businesses
so now I would rather buy a wonderful
business at a fair price than a fair
business at a wonderful price but in
those days I was buying cheap stocks and
Berkshire was selling below its working
capital for sure he had the plants for
nothing he had the machinery for nothing
yet
inventory and receivables of the
discount was cheap so I bought it and 20
years later I was still running a lousy
business and that money did not compound
you really want to be in a wonderful
business because there the time is the
friend of the wonderful business you
keep compounding it keeps doing more
business and you keep making more money
tiya is the enemy of the lousy business
I could have sold Berkshire perhaps
liquidated it and made a quick little
profit you know one tough but staying
with those kind of businesses is a big
mistake so you might say I learned
something out of that mistake and I
would have been way better off taking
what I did with Berkshire as I kept
buying but better businesses I started
insurance business See's candy the
Buffalo all kinds thing I would have
been way better doing that with a with a
brand new little entity that I'd set up
rather than using Berkshire the platform
now I've had a lot of fun out of it I
mean everything in life seems to turn
out for the better so I don't have any
complaints about that but it was a dumb
thing to do I went in the US air I
bought a preferred stock in 1989 as soon
as my check cleared the company went
into the red never got out I mean it was
a really dumb I mean a dead I've got an
800 number I call now whenever I think
about buying an airline stock I call him
up any hour that fortunately I can call
him at 3 in the morning and I just
dialed and I said my name is Warren I'm
an arrow holic and I'm thinking about
buying this thing and then they talked
me down
takes takes hours sometimes but it's
worth it think about that airline buying
an airline stock call me and I'll give
you the 800 number because a
but we got lucky in terms of how we
eventually came out on but it was a dumb
dumb decision all mine
now I've got a really special bonus clip
from Warren on how to find your gift
that I think you're gonna really enjoy
but before that it's time for the three
point landing questions time to move
from just watching another video to
actually taking action in your life or
your business and if you're feeling bold
leave your answers in the comments below
here we go question number one what is
the biggest fear that you need to
conquer number two what would the person
that you want to be do about this fear
and number three what will you do today
to conquer that fear in some small way
I like numbers started before I could
remember it just felt good working with
numbers I was already playing around
with numbers in one way or another and
it was fun to have a bunch of guys over
in heaven betting on which Marvel would
reach the drain first I had a lot of
energy as a kid I was inquisitive and I
was the youngest one always in the class
cuz I'd skipped I've always been
competitive
the limited one would see ones were long
medium the most important work ever
if you had to think of one word that's
most important to you or that sums you
Apple that would become like a little
beacon
[Music]
if you want more Warren check out the 10
mind-blowing facts about Warren Buffett
beer that I made the link is right there
next to me I think you'll enjoy it
continue to believe and I'll see you
there
and the only diploma I have in my office
is the Dale Carnegie diploma but the
Dale Carnegie is up there because I
changed my life
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