As you know about warren buffet one of the richest man in world and he is a big investor also . Warren Edward Buffett is an American investor, business tycoon, philanthropist, and the chairman and CEO of Berkshire Hathaway.
He is considered one of the most successful investors in the world and has a net worth of over US$85.6 billion as of December 2020, making him the world’s fourth-wealthiest person . I got this points from his various books shown below .
In this post I want to will tell you some of the business secrets of warren buffet that most of you don’t know.
1. Don’t afraid to make mistakes.
Try to learn from your mistakes , Better yet learn from the mistakes of others . The first secret of his business is become a life time learner . I am not mentioning go to business college or some other college to take degree , if you have strong desire you can I am not against it .
Remember nothing will resist you until your will become your enemy. Here what I want to tell you is learn from your experience and other’s experience also.
In our life there is no failures there are only results and experiences , If you use your experience in right direction your destiny will glow.
when you own a business or manage a company sometimes you make mistakes consciously/unconsciously , or sometimes may be you lose your customer or money by making too many mistakes.
But sometimes slip-ups happen and a successful business manager learns from his or her mistakes .That’s why I am telling learn from your and other’s mistakes , even when you make mistakes keep your eye ahead your future in fact see your future and be your future.
In business pool your and your well-wisher’s ideas and see what will work and what not . Then follow on what is working.
2. Don’t borrow money
Think twice before you either borrow money or loan money to someone especially a friend. In business always use this thumb of rule , that is always take calculated risks else you will fall in financial pressure.
What I want to say is don’t borrow from your peers or take loan from different sources unless you can manage it. A business can get into a lot of trouble if its owners borrow too much money.
This is especially true if money is borrowed to help a business grow, but then new sales drop and the company can’t pay back its loan. Borrowing too much money can get people into trouble too.
If you borrow money to buy things that you want and don’t earn enough money to pay it back, you can get into a big “money mess.” So remember: The best way to pay back a debt is to never have one.
For example in business if you borrow some huge amount from your friend “A” after that your business get drop can’t able to pay back , what will happen ? . your relation get strain and you will fall in big money mess.
The same thing will happen in our life also when we loan somebody and can’t get back our relation get strain .So remember the best way to pay back your debt is to never have one.
3. Love what you do
Following your passion is key to success.
The third secret is follow your passion. when some one have their own dreams and follow them , they have better chance of being successful. Take for example Mrs Rose Blumkin affectionately known as Mrs B .
Mrs. B came from Russia with a dream to build a successful furniture business in America and she had a very simple approach: be honest, deal with integrity, and give the customers a bargain.
Mrs. B followed her dream with excitement and passion—and absolutely nothing stopped her. Starting with $500 Mrs. B built Nebraska Furniture Mart into the largest home furnishing store in North America and worked at the store until she was 103 years old.
Since we all need to work for a living, it’s best to work at something you like. I love what I do and think everyone should pursue his or her dreams. One of the keys to success is to be excited about what you do and to always have a dream.
4.Make time for both work and play
it is important to right trade-offs between work and play so we live a balanced life. Have you ever tried to live a balanced life .
what I mean is in the business world it is important for a manager to be aware of right trade-offs to be successful. for example a restaurant owner “A” working every waking minutes in his restaurant to improve his business , but no satisfactory results .
Like this suppose a student “B” has many “to do lists” (1) is to do his / her softball practice , (2) to participate in photography contest and (3) running a marathon race for charity last (s)he want to do his / her school work .
student “B” tried hard to keep up doing things going well but not accomplished as (s)he desired. Here Both restaurant owner A and student B tried many ideas but nothing worked until both A and B realized they needed more balance in their lives.
So student B decide to do his / her school work first and participate in marathon race for charity were the most important things in “B’s” to do lists so (s)he decide to drop off his softball team and planned to participate the photography contest next year.
At the same time our restaurant owner “A” realized (s)he missed visiting with friends and neighbors so (s)he entered marathon race for charity as well.
During the race our restaurant owner “A” able to see his / her old friend and make new friends and told every one about his restaurant . And wouldn’t you know it , after the race the restaurant is packed with customers.
From that day both A and B dedicate themselves to only those things that were most important to them and to keep a balance between work and play.
So remember: It’s important to make the right trade-offs between work and play so you can have a balanced life.
5.Listen to what others can teach you
The experience of others is the best class room you ever find. May be some of you have a role model in which you like advices and personalities . Most people who are successful in their life are learned from someone .
Like wise most managers that are successful in business are learned from some one called mentor. A mentor or a role model is like a teacher who shares their experiences and guides other to become better at some thing.
Choosing the right mentors in life , like your parents ,grandparents , or a teacher is important for success. Always remember a bad mentor will guides the direction of wrong path which will ruin your future. For example shakuni in our great epic mahabarath .
Take another example a bad cricket coach always direct the wrong path, terrorist leads young generations leads to their ways to accomplish their mission which may results death or uncertain future .
Remember always When learning from others outside of your family, you want to choose mentors who behave the way you want to behave throughout your life. Ok so shall we go on next point .
6. Always think of new ideas.
Try to come up alternate way of doing things.
As you know every action gives results either it may be positive or negative depends on the action you took. one of the known fact is that if you repeat same action again and again nothing results change , that is same results you get every time , have you ever think why does this happens? .
Because you took same action again and again , so be flexible on new alternative ideas may be some times it will give more results than you expect. For example suppose you had music shop in which all music ,game , movie CD / DVD are available for sale and runs very well.
Quite after some period of time with the introduction of online music ,game , movie downloads eventually your business getting worse than before by day by day. And if you stick on same idea of selling the music/movie DVD , you will not get any sales why ? because peoples can get it from online so why do they buy from you .
Instead if you start a music learning school there may be get business if it not work take another alternate way open a dance school like this change your ideas and see what works on and what not. In business, managers are always faced with roadblocks on how to grow their business or what to do when competition increases.
The most successful businesses are constantly thinking of new ways to do things .Thinking of alternative ideas and ways to do things is important in everyday life, too! Sometimes, when we try something for the first time, it doesn’t work out the way we expect.
Whenever that happens, be flexible and think of other ways to make something work. So remember: It’s best to think of new ways of doing things.
7. Always have a plan.
When you fail to plan , you plan to fail. Always make a plan before any work you take . I remember in this occasion an old adage “Prior planning prevents poor performance”.
when planning weighs it’s pros and cons and after that follow it. Managers who carefully make plans for their business and then follow through with their plans tend to be successful.
In other words, if a business doesn’t properly plan how to make and spend money, it could end up failing. Planning well is also important in everyday life. You need to plan for things if you want to be successful , like doing your homework every night so you can get good grades.
So remember: The will to prepare is just as important as the will to win , so if you fail to plan, you plan to fail.
8. If you fail try again.
Failure is not falling down but it is staying down. I know Most of you may be failed at one time or many times in your life . Do I you know how do I say it because no one take birth by knowing all things now , am I right or not. Ok this is one of the fact I said let’s come to the point .
By failing one get either a experience or a lesson which will be very helpful in their future not make same mistakes. As I said above you repeat the same mistake again and again you will get the same results. Remember the old adage “There is no such thing as a failure there are only results”.
For example a successful business is always trying new things , like trying to sell new products. But not every new product is successful and managers of a good business learn from failure.
“Trying new things” and knowing that you will make mistakes in life is important to understand , because today’s failure can lead to tomorrow’s success. Take another example some of heard about my favorite inventor THOMAS ALVA EDISON .
When he was busy inventing the light bulb, Edison failed more than 10,000 times. But the great inventor never saw it as 10,000 failures, saying, “I just found 10,000 ways that won’t work.” In other words, Thomas Edison never let failure stop him.
9. Protect your reputation
It takes years to build a reputation but only minutes to ruin it. You can able to handle your money for a long period of a time but handling your reputations for a long period of time , you have strive for it every time .
Like wise in business if you lost your Good will it will take many years to regain it . On the other side if you loss your money you can get back within a period of time.
One of the best things a business can do for success is gain a good reputation. Managers of businesses spend a lot of time winning over customers, employees, owners, and the community.
They realize that a good business reputation is something that takes years to build—but they also know it can also be ruined in a minute.
10. The customer comes first
Take care of your customer and your customer take care of you. It’s a true fact that everyone need to know about business. In business you should take care of your customer by questioning and listening.
For this you must be good at communicating with your customer . Know their needs by questioning and listen carefully what they are telling . Remember the quote “ Customer is the king “ , and always keep a attitude that customer is the king I am the servant.
If you think opposite of this then I am sure eventually you loss your customer. For example Sometimes a small misbehavior from your employees can pay huge cost. So treat your customer as a king or queen and ask what they likes and listen to them carefully.
A successful business is really good at communicating with its customers. And the best way for business managers to communicate with their customers is to ask a lot of questions and always listen to the answers.
This way, a business can take care of its customers and the customers will take care of the business. Good communication is the key that allows a business to develop and grow.
As in business, you want to develop good communication habits in life by always questioning and listening. Keep asking “Why?” and Why not?”—then listen carefully to the answers.
So remember Good communication is important. Never be afraid to ask questions and listen to the answers—and also know that there is no such thing as a dumb question.
For example in a place suppose there are 2, 3 restaurants and one restaurant is always filled with customers .
if one of that customer came to your restaurant , treat him / her well and ask them why do they go there ? , what do you eat from that restaurant more often ? , is our restaurant need any improvement ? like this ask questions on many customers without disturbing them . Then you will get an idea what you need to do to attract more customers.
11. open minds let in better ideas.
opening your mind is the door of success. In life , being positive and open-minded is also very important. It’s always a better choice to be optimistic about the future and project a positive attitude.
Is your mind open or closed ?. In a successful business , managers show respect for other’s opinions by encouraging different ideas. You can get different ideas from your employees by conducting a meeting monthly /quarterly or annually as you like .
And experiment with different ideas and see what will work what not. By being open-minded , a business can create a positive environment for its workers by inviting everyone to suggest new ideas to improve the company and make it more successful.
For example you can see many superiors in career who doesn’t accept any one’s idea than his / her idea. So remember: Successful people look for new ideas. They don’t automatically say “no”; they ask, “What are the terms and conditions of ‘yes’?”.
12. Always promote yourself
Successful businesses successfully promote and advertise themselves. Do you know marketing is the soul of a business For example that’s why whenever you turn on TV you can able to see many advertising precedes a program.
Think about how you advertise yourself. Every business needs to promote itself to sell its products and to distinguish itself from the competition. So it’s very important for a business to advertise itself.
For example if you open a new startup and people don’t know about it then how your business will grow . Did you ever think how you advertise yourself .
That is you project an image of yourself – everyday by what you wear and how you treat others. It’s important to advertise yourself in a positive way so people see you from inside out.
Always be honest and sincere, and never lie under any circumstances so that your business will grow successfully in the long run. So Remember: Treat other people the way you would like to be treated , that’s the best advertisement of all.
13. Location is very important.
Location is the vital part of the business. In any business location plays very important role . Have you ever thought about the importance of a good location? .
Any business that sells to the public needs a good location so it can be found easily and is near the customer who want to buy its products. And just as a store needs a good location to attract customer, you can benefit from being in a good location too.
For example in classroom , it is best to sit in a place where you can hear the teacher and clearly see the lessons on the board.
The better you are located, and able to pay attention, the better you will do in school. Location, Location , Location , Location – it can help you pay better attention and learn the most you can.
Take another example if you open a ice cream par lour on small investment in a Village where there are no children resides . Eventually your business will go down than grow , why ? .
The main customer of ice cream products is school / college students , may be sometimes adults will also buy from you , but it is a rare case. Now you understand that opening a business in a wrong place will cost you more in future.
14. Don’t be fooled
If it seems too good to be true, it probably is. As in your life as well as in business you had meet many occasion of offers .Do you know when you have fooled?.
Managers of any business often receive offers on how to run their business, improve their sales, and make more money. Sometimes these promises are “too good to be true” and prove to be wrong – ending up hurting a business instead of helping it.
So don’t accept any offer’s at face value because most of times it sounds too good to be true. In life, as in business, you need to make sure that you carefully think things thorough when somebody gives offer.
If someone guarantee that you will make easy money or they make promises that are unbelievable, then a warning bell should ring in your head. In other words, don’t believe everything you hear.
So remember always be careful when considering a promise and always use good, common sense to make up your mind. For example in news paper you can see many unbelievable fake promising advertisement, some says if you invest just Rs 500 after 1year we will return Rs 50,000.
Think twice how does it possible? Check out the company how long they are doing business? , see and ask their clients secretly so that you don’t be fooled.
So remember: Always be careful when considering a promise and always use good, common sense to make up your mind. If you think something seems too good to be true, you’re probably right. As I always says more you learn , more you earn.
15. Don’t judge others
With businesses like with people ,you should get know them before you judge them. I remember in this occasion an old age that is “Not Judge a book by its title page. “ .
You can see many peoples in your life looks like a simple man but more intelligent they are . For example see our great swami Vivekananda who looks simple in red cloths. Americans abused him by saying what he knows ? is he eligible to speech.
In the end peoples applauded him very much after his speech. See another example Mahatma Gandhi who looks simple but who won freedom by non violence. Like this you can see many scientists who looks simple in their life.
Guess who? right , warren buffet , Bill gates, Jeoff Bezoz , Elon musk ! Have you ever been misjudged by some ?. In any successful business manager need to go out of their way to get to know their customer before they introduce a new product or service.
For example Sometimes your customer may looks in simple dress with weird look but do a big business with you until you treat them well. So you never presume to know what your customers will like or dislike .
In other words , don’t misjudge your customer. It’s also important not to misjudge people in your life . Make sure that you take the time get to know someone because of how they look, what they wear or by what others say about them is not a good idea.
It’s also important not to misjudge people in your life. Make sure that you take the time get to know someone before you form an opinion about him or her. Prejudging someone because of how they look, what they wear, or by what others say about them is not a good idea.
So remember be careful not to misjudge others, most of the time it leads to a lack of good judgment!. As I says always more your learn , more you earn.
16. Be willing to change your ideas
Chains of habits are to light to be felt until they are too heavy to broken. As you know Newton’s third law of gravity for every actions there is equal and opposite reactions.
Suppose if you had a bad habits and follows on it , then you to face its opposite reactions also. Have ever thought you might have a few bad habits ? .
See a business owners and managers always strive to be responsible and dependable . They need to think of how their actions today will affect their business in the days ahead and beyond.
For example if you borrow lots of money for you business needs for the short term but unable to pay it back , the results can be disastrous. In life you can see some stubborn characters they will not accept any one’s ideas or suggestions except his / her own ideas and will do as they like results in tragedy .
so remember the adage “ if you lost wealth nothing is lost , if you lost your health something is lost , and if you lost your character then everything is lost “.
See another example would be if someone kept behaving in the same way over and over so that he or she never changed.
This kind of behavior can cause problems if they don’t see the advantage of “breaking the chain of habit” and acting differently. So remember do your best to be responsible and dependable—and if you think you are developing any bad habits, try to break them.
17. Your Image is important
Price is on the price tag , value is in eye of the beholder. Image plays important roles in your life as well as in business also.
For example one of your friend always lies , you and friends gave him / her a image of liar so that even if (S)he tells a truth you take it as a lies why? because you know (S)he always lies .
Just like in business we give different images for different shops. It depends on their product , service , price and treatment. To run a successful business one should focus on this following five areas so that customer will come back again and again.
- Quality products
- Quality service
- affordable price
- pleasant atmosphere
A service business, such as a restaurant, works hard to create an image so that when customers think of the business, they know they’ll have a “good experience.”
This experience could be good food, good service, good price , good advertising or a fun setting or all five! Be thoughtful of others. When a good image is reinforced through advertising, the business can become successful, since customers will go out of their way to eat there for the good feelings.
In other words, the restaurant makes them feel happy! this happens in real life, too. You should work on your image so that you have a good reputation and people only think “good things” about you!.
So remember: The best thing you can do to improve your image is to be likeable-someone who is honest, kind, and thoughtful of others—an all-around good person . As I always says more you learn , more you earn.
18. Be Thoughtful of Others
If your service is outstanding, you’ll always stand out. In life as well as in business make a good connections with your peers so that may be they will help you in your adversities.
I love to play chess and what chess teach us is never underestimate a person so that a little pawn in chess become queen by reaching the last row of the board.
One of the best ways for a business to stand out is for it to be respectful of its customers, to care for them as if they were friends. Customers almost always prefer to do business with companies that treat them with respect.
Being nice and making friends is also important for success in life. You should always strive to be nice, care for others, and be friendly; if you do this, you’re sure to stand out.
So remember: The first three rules for making friends are: Be pleasant, be respectful, and care for others. The fourth rule is to pay attention to the first three rules. So don’t make more enemies in your life as well as in business , who knows when they become helpful.
19. Pay attention to details
A good business is discipline to do little things right every day. Did you ever pay attention to little things in your life. To make a business successful it is also necessary to pay attention to little things and do them right.
In other words, follow through on all the details of its business— every day. This gives customers confidence that the product or service they are buying will be what they expect.
Discipline and practice are also important for individuals to succeed in life. If You do all the little things right every day, then the big things will follow. For example, studying every day will make learning at school a lot easier and you will become smarter.
Practicing a sport or activity will only make you better at it. Also, exercising every day helps you to stay healthy. So remember: If you want to be good at something, you need to be disciplined and keep practicing.
If you take the easy way out by cutting corners and doing things too quickly, you’ll never be as good as you could be! Remember “most of us never do great things , but we can do small things in great way. “
20. How to present your self
It’s not just the outside that counts. It’s the whole package. In business how you present yourself is also very important. Every business needs to “package” itself in order to become successful.
How a business appears on the outside tells a customer a lot about how it acts on the inside. For example whenever our mind changes our facial expressions also changes. That’s also a life lesson.
Packaging yourself properly is also important. It’s like having a scorecard showing on the outside that reflects your inner scorecard. For example, you should show respect if you want to be respected. Admire honesty as part of being honest.
And be lovable to be loved. Remember: The outside reflects the inside and the inside reflects the outside— both are a reflection of the whole package!.
21. Your Decisions Affect Your Future
Make sure you stay in school. Failing to complete your education can lead to not achieving your dreams in the future. As it says Hindu legendary epic mahabarath , Krishna says to arjun that don’t take any decision on emotional feelings .
For example most of the peoples take bad decision more often on happy, sad or anger emotions. Take another example if you ask when your either mom or dad in pleasant mood , may be you got permission or things what you like.
Like wise in business also when your Boss in good mood if you ask for a day leave may be (S)he will grant . Ever heard of the domino effect? When managers of a business make decisions, they have to think of the consequences. It’s possible that a decision that is made today can have a “domino effect” on the future.
In other words, just as one domino can knock down a row of one hundred dominos, one decision can have an impact on events the next day, next week, and on into the future. For example, if a manager decides to charge too much money for a product, then—BANG!—it might lead to lower sales and—BOOM!—lower sales may lead to—making less money ends in financial pressure. This secret also applies to your life.
A decision you make today might affect events in your future. The best example that comes to mind is that you should stay in school, because failing to complete your education today can lead to not achieving your dreams in the future.
Remember: One decision can affect your future—just like one little dominos. can knock down a row of one hundred dominos! Remember always take decisions on facts than assumptions.
22. Save for the Future
Save money for things you need instead of spending it all on things you want. Do you know time and money are very important so spend wisely? .Want to know the secret of how your money can make money by itself?.
Managers need to save money for advertisement, for supplies, or to buy equipment so their business can grow in the future. But if a business doesn’t save money and spends all that it earns, it can eventually go out of business.
Saving money is also a very important habit for you to form as early as you can. In this occasion I remember the warren buffet’s quotes “If you buy things that you don’t need, then you have to sell things that you need. Always follow the attitude “ Money is servant I am the master “.
As you earn money, you should get into the practice of putting some aside so you can buy the things you need in the future. In other words, as Ben Franklin once said, “A penny saved is a penny earned!”. Remember money is not important thing in life , but money does affect everything important.
23. Be Someone in Demand
Prices are determined by supply and demand. Have you ever heard of “The law of supply and demand “. In other words when demand raises seller increases it’s product price is called law of supply and demand.
Demand means how many customers need the product you are selling. In life, we are all subject to the simple law that there are two things that everyone can supply without limitation: knowledge and love. Do your best to
share both of these with others—especially your family.
Remember: Share your knowledge freely and be lovable. In other words, supply all the positive things in life to others and you will definitely be in demand.
24. Confidence Comes with Understanding
Don’t get involved in a business you don’t understand. In life If you want to understand and get rapport from a person then listen to his /her words, tone of voice and body language.
And get into their point of view. Like wise if there is a any issues / worse situations in your life as well in business , first up all learn to understand thoroughly before taking any decisions .
it is the understanding and applications of wise thoughts which counts . For example if your business losing customers day by day and you don’t know what to do? , One of the factor this happens is your misunderstanding on your customers. Understand them well by questioning as I said above.
There’s a lot of power in understanding others—and yourself. Good managers truly understand their business, understand what their competitors are doing, and understand what their customers want. This kind of understanding helps successful businesses adapt to change.
And understanding is also important for success in life! For example, understanding what is needed to complete a task or being able to understand another person’s point of view.
And while you’re at it, be prepared to change your mind if their point of view makes good sense Good managers truly understand their business, understand what their competitors are doing, and understand what their customers want.
This kind of understanding helps successful businesses adapt to change. Remember: Learn to understand something before you do it. In other words, think things through before you act.
25. A Lifetime of Learning
Be smarter at the end of the day than you were at the beginning. It is better one to should update with latest knowledge from different sources like media, internet, life experiences of other , book reading ,technologies , health news , financial IQ etc. If you update yourselves with latest knowledge and skills then you will become more confident and be more competent.
Did you know that learning could lasts in your lifetime? .For a business to be successful in the long run, managers need to constantly learn—learn more about their customers, their competitors, and changes that are always happening in the marketplace.
In life, it’s the same thing. I’ve often said that the best investment you can make is in yourself—and to do that, challenge yourself to learn something new every day. Remember: Learn to be better at what you like to do and that will make you happy with yourself. And if you are happy with yourself, others will be happy with you!.
26. Partners Make it Easier
Great partnerships will make any job easier. As you know the importance of a marriage life, a good life partner make your life more colorful. The other side of the coin is a bad partner make your life dreadful. Remember what our ancestor’s says “ a wife may either make you or break you”.
Likewise a good business partner make your job easy and extend your business also , but be careful while choosing business partner. Well, here we are—the last secret.
Isn’t it easier to do things with a partner than doing them alone? For a business to be successful, it needs a lot of people to work together smoothly. So building good relationships and having first-rate partners is important.
In life, it’s also a good idea to build partnerships to be successful—especially with your friends and family. A great partner makes any job easier. For example you know some of the successful movies directed by two peoples or may produced it by more than two peoples.
Take another example in 1962, Buffett became a millionaire because of his partnerships, which in January 1962 had an excess of $7,178,500. So as I always says more you learn more you earn.
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