How Warren Buffet Made My Kyani Business Stronger
Warren Buffett’s name has become synonymous with successful investment and capacity to manage a business. From reading about his life, one can identify 8 distinct methods he used to become a successful businessman. These are some things I have learned from my personal study of Buffett’s life while building my Kyani business.
Many people in the world of investing approach investment as pure luck. Luck does play a big part in investments, but preparing for the market with research enables an investor to see dimly around corners. A lot of investors have not done their homework and thus have no idea what they are doing.
Warren Buffett has succeeded by not doing these things. He always knew what he was doing. Before settling on what investments to make he spent hours pouring over facts and analyzing costs and benefits. He became so devoted to this homework he even memorized the financial reports of many companies! No matter what you do, be sure to do your homework before moving forward. Know what you are doing.
Warren Buffett studied not only the market in preparation for investments, but he studied all manner of disciplines. Buffett did not waste time with frivolous activities but rather spent much of his time reading.
Perhaps the reason why Buffett became the only student of his mentor, Benjamin Graham, to receive an A+ was because of his devotion to obtaining knowledge in whatever way he could get his hands on. Knowledge is power, and the more power you have in investment the better you will be.
View Frugality as a Virtue
Despite his immense wealth, Buffett has become well-known for his frugal lifestyle. Buffett understands that little things lead to great things—investments today, though small, will become huge amounts in the future if correctly invested. It is even said that Buffett would think of a $10 haircut as costing him $300,00. Unnecessary expenses today will cost you greater wealth in the future.
Acknowledge the fact that you do not Know Everything
Many people are too prideful to admit they do not know or understand something. Because of this way of thinking, investors may end up doing something they do not understand simply because they cannot stand the thought of not knowing everything.
Buffett was not afraid to turn down opportunities to invest if he did not understand them. He would spend his time with those he was more familiar with and had studied instead of focusing on fantastic outliers in the market.
As time changes you need to evolve as an investor. Buffett is a principled man and always has been, but he has been willing to adapt, evolve, and experiment as his principles have been shaped by experience.
Stick to your Principles
There were times during Buffett’s career that other fund managers made more money than Buffett’s partnership. When those things happened it would have been easy for Buffett to ditch his current principles and methods in favor of other fund managers’. As Buffett stuck to his guns, his principles led him to success while other strategies proved to produce short-lived results.
Know when to Move On
Because of the economy in the 1970s, Buffett decided he had no choice but to close his partnership. This must have been an incredibly difficult and risky move. Not long after the partnership closure, Buffett transitioned to managing Berkshire Hathaway.
A successful investor knows when to move on. They are seasons in life for everything. Many people become so at ease with their current situation that they fear to move on to what may be a far greater opportunity to succeed and grow.
Invest in your best ideas rather than your mediocre ones. Find what is the best investment into growing your own business and tackle it. If you are focused on growing your business, you will easily be able to focus on accomplishing that which you identify necessary for furthered business growth.