10 secrets of wealth of Warren Buffett

Alice Schroeder spent hundreds of hours talking to people who were honored as the "Sage of Omaha" (sage Omaha) to make a new official biography titled The Snowball talk about this rich talent. Here are some tips to get rich Buffett's quoted in the book and how to make them come true in the normal human.

1.Reinvested profits

When manually earn the first amount in your life, many people have a habit of spending them all. Do not do it, reinvested earnings. Buffett learned this lesson early on. During his high school time, he and some friends bought a ball roller game (pinball) and put it in a barbershop. Earn money by this machine, they bought more machines until they had eight units equipped for various barbershop.

When you decide to sell the business group, Buffett moved to stock and set up a small business. At age 26, he has accumulated $ 174,000, equivalent to $ 1.4 million today. Obviously, he has proven that people can make a small amount of large fortune.

2.Culture aspirations to become different

Do not make decisions based on what others are saying or doing. When Buffett began managing money in 1956 with $ 100,000 cobbled together from a group of investors, he was considered eccentric. Buffett started in Omaha, not on Wall Street, the financial capital of the United States. He did not tell his parents where he put money into. Many predicted Buffett would fail but when accounting of his portion 14 years later he proved them wrong. Buffett's assets to $ 100 million.

Instead of follow the majority, he invested in the "sales" stock. No doubt, their prices increase from year to year. According to Buffett, you should not imitate others, you should decide based on your own criteria, not common to the world.

3.Never "thumbsucking"

Collected the necessary information before to make decisions and ask the relative, friends, comply to the set schedule so they do not go astray. Buffett is proud that he has the ability to make quick decisions and sticks with it. He criticized the action of waiting and wanders. When someone offered him a job the do business or invest, he always answered directly the the spot: "I have no idea if you do not give the a price."

4.Specific contract must be in hand before starting 

Negotiations is always the biggest factor when you start a job. That's when you has something to suggest to the other , and they must be expressed in specific contracts. Buffett learned this lesson from his childhood, when his grandfather Ernest hired him and a friend to clean family's grocery store lost in snow fog. The two spent five hours shoveling until numb can not stretch. Finished, he paid 90 cents of team. Buffett was horrified that only earn pennies for a job "snapped back" like that. Problem is because he does not reach agreement on wages. Since then he tells himself to specify an agreement before embarking on whether partner is friend or relative.

5.Be careful with those small expenses

Buffett likes to invest in companies run by people who are wary of the costs, even the smallest. He once acquired a company whose owner counted the sheets of paper in the box 500-sheet toilet paper to see if they has been cheated. He also admired the person who just paints the outer walls and not paint inside in order to save. Be careful with all expenses if you want to get rich.

6. Get out of debt

Those who live by borrowing money and credit cards will not be rich. So, Buffett never borrowed a large sum of money for consumption or investment. He also hates the mortgage. Buffett said he has received many letters confided his heartache of those who thought the debt management but hell for them. His advice is only on loan to the amount you can pay and invest their own savings.

7. Be patient

By perseverance and ingenuity, you can win against the best opponents stunned. Buffett bought supermarket-interior decorations Nebraska Furniture Mart in 1983 because he liked the style business of Rose Blumkin owners. Immigrants from Russia, she has turned a pawnshop down into the furniture shop the largest in North America. Blumkin's strategy is of sales below the price of other stores and are willing to negotiate on the purchase price. For Buffett, Rose embodied tireless courage and victory in the fierce competition.

8. Know when to retreat

Once when Buffett was a child, he went to a race track to bet and lose. Decided to recoup the money, he bet again and lost all. He felt ill after losing all his earnings in a week. Since then, Buffett never repeat the mistake. "Know how to retreat from a failure and not to fall into depression of eager to win," he said.

9.Aware of the risk

10.Understand the true meaning of success

In spite of the richness, Buffett never measures success in dollars. In 2006, he promised to transfer nearly all of its assets to the charity, but the priority is the Bill and Melinda GatesFoundation. He also refused to establish a base or monument bearing own name. "I know there are many wealthy people to build medical facilities in his own name. But the truth is that no one in this world love them. When you mature, you will measure success in life by the number of people who you want to be loved and truly love you. That is the ultimate goal of life, "he said.