7 Life Lessons from the Oracle

You’ve probably heard of Warren Buffett and his company Berkshire Hathaway, but did you know that the “Oracle of Omaha” made almost 99% of his fortune after his 50th birthday?

Buffett’s net worth fluctuates daily, especially in this market, but it’s safe to say that it’s over $100 billion. When he was 52, Forbes estimated his wealth at a paltry $376 million. Now, that’s getting it done after 50.

Warren Buffett’s theories, ideas, and insights extend far beyond investment. His frameworks for life apply to everyone at any age.

Think like a contrarian

“Be fearful when others are greedy and greedy when others are fearful.”

While it is simple to follow the majority, doing so produces mediocre results.

The advantage lies in independent thought if you wish to attain asymmetric results. You must develop the ability to do your own tasks and make your own decisions.

You can’t depend on other people. You must create your own maps.

Time should be your ally

“Time is the friend of the wonderful business, the enemy of the mediocre.”

The idea is to use compounding to your advantage. You stand to benefit most from the long-term compounding of your constructive daily acts.

Time is either “invested” or “spent.” Spending time should not be prioritized over investing it.

You tend to make the worst decisions when looking for a quick solution. Growth takes time, so don’t rush it.

Create a life that will increase in value over time. With long-term friends, engage in long-term games.

Put time to use for you, not against you.

Wait for your pitch

“The stock market is a no-called-strike game. You don’t have to swing at everything – you can wait for your pitch.”

It’s easy to fall into the habit of seizing every possible opportunity. It could even be advantageous early in your career when luck is multiplied by opportunity. But as you advance, it’s crucial to start being more selective about the options you choose to accept.

If you take advantage of every 1x opportunity, you won’t be able to seize the 10x opportunity when it presents itself since you be too busy.

Life isn’t about swings and misses. It’s waiting for your perfect pitch and crushing it.

Quit digging

“The most important thing to do if you find yourself in a hole is to stop digging.”

The first thing to do in a challenging circumstance is to pause, take a step back, and breathe.

Learn to physically and emotionally remove yourself from a situation by taking a walk, turning off your phone, or doing whatever else is necessary.

Like every bad guy in the old Tarzan movies, when you get caught in quicksand, slowly pull yourself out instead of flailing aimlessly and sinking deeper.

Extract maximum value

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

The most successful people in the world don’t necessarily generate the best opportunities; instead, they simply find ways to extract the most value possible from the ones they do.

As you pursue new ideas, give maximum value more careful consideration. You won’t be sorry.

Rely on your expertise

“Risk comes from not knowing what you’re doing.”

Self-awareness is the hallmark of the most successful people in the world.

Understanding what people know is important, but knowing what they don’t know is more important.

Consistent winners never gamble. They choose only to participate in games they are uniquely suited to win.

Reputation is everything

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”

The world would be a much better place if more men followed this principle.

Have a set of core values and never wander from them. Always act in accordance with your principles in every interaction, no matter how big or small.

Your character defines you. Please don’t take it for granted.

 

While not everyone can use this advice to become a billionaire after 50, these words of wisdom can help you be a better investor, thinker, and person.

 

Take care, even down there.

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