Yesterday I told you how, on average, ppl desperately want two things… to be Rich and Good Looking. 

Poor DNA dictated the first one was out for me but I figured becoming wealthy was something I could pull off. With some hard work, intestinal fortitude and maybe a little luck falling my way.

Here are some more of the lessons I learned from none other than Warren Buffett (if you missed yesterdays post check it out where I listed one through three) on creating wealth.

4. Don’t risk something you need to get something you don’t

“If you buy things you don’t need, you will soon sell things you need.”

Warren Buffett

People tend to want money and want it FAST. Therefore they go for investments with promises of high returns. But then fail to objectively factor in the higher risk that is almost automatically associated.

This happens when people get greedy, don’t (unable to) read the fine print of financial documentation and don’t have a realistic investment objective.

If your financial goals are vague (nonexistent?) and your investing is done in a random fashion your destine to lose money. 

Solution:

Understand the various financial instruments and asset classes (see rule number one “investing in yourself first”).

Taking risks is not necessarily wrong, but if you’re going to be a risk taker do it for the right reasons. Often people take risks out of greed when they should have held back and subsequently pay a heavy price.  Be long-term goal orientated and strategic.

 “No matter how great the talent or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant.”

Warren Buffett

Once in a while, we all suffer from the urge to splurge and then justify our lack of self-control with excuses of special occasions, lifestyle, family, emotions and even under the pretenses of “smart decisions.”

Successful marketing companies exploit us by making offers that give consumers the false notion of having made the right decision.

Soft drinks and the like sell us with promises of youthfulness, adventure, happiness, excitement, etc… so always remember that spending wisely is not about being a tightwad but being strategic and self-aware.

“Rule No. 1: Never lose money. Rule No.2: Never forget Rule No.1”

Warren Buffett

5. Surround yourself with people you admire.

Columbia professor Benjamin Graham has played an enormous role in Buffett ’s life as a mentor.

“Tell me who your heroes are and I’ll tell you who you’ll turn out to be.”

Warren Buffett

You’re the average of the five people you most associate with so seek out people you admire and long to be like. It borrows from the law of averages, which is the theory that “the result of any given situation will be the average of all outcomes.” Pick out associates whose behavior is better than yours and you’ll drift in that direction.

What is lesser known or acted upon is that the list of five is forever-changing. So depending on what areas of your life you’re currently working on or looking to improve/change… physical, emotional, psychological, financial as examples, dictate that you need to seek out different people at different stages of life.

You probably interact with many people, but the few who are closest to you have the greatest impact on our lives. 

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

Warren Buffett

6. Face and conquer your fears.

You only live once so don’t let fear get in your way. In particular, something you know will make you more successful.

Buffett was once terrified of speaking in public… He took a Dale Carnegie course to help get him over the fear.  Today he’s one of the most sought-after speakers on the planet.  Therefore and subsequently, what we fear doing most is usually what we most need to do.

If selling is a fear, deal with it. If investing is a fear… buy some books and start doing your homework on understanding financial tools.  If reading is not your forte… and you KNOW it can take your career to another level… start practicing and improving day by day.

Your fears are normally serving notice of what you need to be doing more of to grow… both in your personal life and with your career. Make a list of the things you’re fearful of and set out to do them. A great strategy is to do one thing you’re fearful of every day.

If you attempt this and find your still not taking action…. pull out a paper and pen and define the worst thing that could happen if you take action. Understand it, accept it, and then proceed to take action.

As you push yourself into these uncomfortable situations, you’ll be making progress towards your goal and becoming less afraid, subsequently moving your baseline and allowing yourself to take on new and bolder tasks in the future.

“Your largest fear carries your greatest growth.”

Warren Buffett

7. Seize great opportunities

Much of what Warren Buffett preaches is relatively conservative and long-term based… however he’s also of the opinion that when big opportunities present themselves, you need to be smart enough to weigh the situation correctly (as best you can) and really back the truck up.

Buffett and his companies don’t do many things but when they see something that is big and that will work after careful calculation, they do it on a large scale. 

“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.”

Warren Buffett

So there you have it…

Seven coaching tips from the “Oracle of Omaha”… He’s a great man and a great mentor.  Was a pleasure and enjoyed doing my research on him.

In closing…. all of us have big audacious, wild dreams just like Buffett and so many others. The problem is that many have given up on them or, worse, never bothered to try.

I’ve said this before but as you get older, the voice in our head that used to say, “I can become a professional athlete, land on the moon etc…” says, “Buddy… be reasonable and lower your expectations!”

The competition for the BIG Warren Buffett type success is significantly lower than it is for the more “reasonable success.” 

That is not to say becoming a multi-millionaire investor, coach or businessman a la Warren Buffett is going to be easy…. far from…. but I know it’s far more possible than you think.

Be great today and take massive action.

Thanks for tuning in,

Karl Bryan