When I’m at my live events, I ask people, “Who is the most famous investor in the world?” and all of them say, “Warren Buffett.”
Warren Buffett is the most famous investor in the world. He is worth 90 BILLION dollars!
But how did he get so rich? What’s going on in his head?
Let’s take a look!
Here are the 5 best quotes from Warren Buffett that reveal how he thinks
Number 5: “Be fearful when others are greedy and greedy when others are fearful.”
This is one of the core principles of Warren Buffet’s investment strategy, and I like it. The idea is to buy when everybody else is panicking, and to sell when everybody thinks “This is awesome.”
I’m using this principle for my real-estate investing: Right now, prices for houses are at an extreme high in Austin. I own 2 apartment complexes that I bought 3 years ago. And I’m selling them right now when everybody thinks that THIS is a great investment opportunity.
I do the same with trading stocks: “If your Uber driver tells you about a stock, it’s time to sell.
So be fearful when others are greedy and greedy when others are fearful.
Number 4: “It is not necessary to do extraordinary things to get extraordinary results.”
You don’t have to be a genius! Focus on being CONSISTENT. You have heard the saying: “A journey of a thousand miles begins with a simple step.” And then you take the next one. And another one.
I’m using THIS principle in my trading: I am aiming for small, but consistent profits. To me, consistent profits are more important than “windfall profits” that might occur every few years.
Think about football: How do you win a game? By moving the ball consistently towards the goal line and NOT by throwing a “Hail Mary” every single time, right?
Number 3: “Risk comes from not knowing what you’re doing.”
Always do your homework. KNOW what to expect. If you want to play a game, you need to know the rules of the game first. And if you’re anything like me… I’m actually looking up the STRATEGY for a game before I play it.
As an example, recently my kids wanted to play “Clue” with me. So I learned the rules, and then I looked up “Best strategy for Clue” on the internet. And yes, I won the game. If you want to make money with trading, you should know more than just the rules. The rules are simple. You actually need a STRATEGY so that you can WIN the game!
Number 2: “The difference between successful people and really successful people is that really successful people say no to almost everything.”
I love this quote! Especially when it comes to trading. I don’t know about YOUR inbox, but every day I am receiving emails about a new trading strategy or a new investment strategy.
It’s important to FOCUS and say NO to everything else. Pick a trading strategy that makes sense to you. And then STICK WITH IT.
Don’t get distracted! Focus.
Keep in mind: The grass always looks greener on the other side because it’s fertilized with bullshit!
Number 1: “If you don’t find a way to make money while you sleep, you will work until you die.”
THIS quote has changed my life! I was working at a director at IBM, slaving away 60 – 80 hours per week. And yes, I made good money. I had a nice 6 -figure income. But I realized that if I didn’t find a way to make money while I sleep, I would work for IBM (or somebody else) until I die. And that’s why I decided to quit my job, move from Munich in Germany to Austin, TX to become a trader.
So, there you have it, these are my top 5 favorite quotes from billionaire Warren Buffett that reveal the way he thinks.
Which one is YOUR favorite quote? Have one I didn’t mention here?
Let me know by leaving a reply below!