Warren Buffett’s Top 10 Rules For Success – Volume 2 (@WarrenBuffett)

Warren Buffett’s Top 10 Rules For Success – Volume 2 (@WarrenBuffett)

– Don’t sleepwalk through
life, and don’t say it’s all going to be great. I’ll do this and I’ll do that. I’m just marking time to be over. I’ve told people that’s like saving up sex for your old age. I don’t have to do, follow what Wallstreet is telling me
to do in that quarter. So I own the brush, I own the canvas, and the canvas is unlimited. Defining your circle of competence is the most important aspect of investing. Bill says if I’d been born
a few thousand years ago, I’d have been some animals lunch, because I’d have gone on
saying, well I allocate capital. And the animal would say,
they’re the kind that taste the best. And I can’t run fast
and I can’t climb trees. – He’s been the chairman
and largest shareholder of Berkshire Hathaway since 1970. His success in investing
has lead to people calling him the Oracle or Sage of Omaha. He’s considered to be the
most successful investor in the world and is the
second wealthiest person in the world with an estimated net worth of $73.9 billion. He’s Warren Buffet, and here is my take on his top ten rules
to success volume two. Rule number is my personal favorite, and make sure to stick
around all the way to the end for some special bonus clips. Also, as Warren is talking,
if he says something that is really meaningful to you, please leave it in the comments below. Put quotes around it
so other people can be inspired as well. Enjoy. (uplifting jingle) – I was just wondering
what would you consider to be the worst investment
you’ve ever made? – The worst investment I ever made? How long do you have?
(audience laughs) I made some very bad
ones, but that doesn’t really bother me. It may bother the shareholders,
but that’s another question. (audience laughing) You’re going to make mistakes in life. I mean, there’s no question about it. You don’t want to make
them on the big decisions, you know, who you marry
and some things like that. So there’s no way I’m
going to make a lot of business and investment decisions without making some mistakes. I may try to minimize them. I don’t dwell on them at
all. I don’t look back. The biggest mistakes are
the ones that actually don’t show up. They’re the mistakes of
omission rather than commission. We’ve never lost that much
money on any one investment. But it’s the things
that I knew enough to do that I didn’t do. We have missed profits of
as much as maybe $10 billion in things that I knew enough
to do and I didn’t do. Now the fact I didn’t
buy Microsoft way back is not a foregone
opportunity because I didn’t know enough to make that decision. But there have been other investments where I did know enough
to make the decision, and for one reason or another,
I either didn’t do it at all or I did it on a small scale. I was sucking my thumb
when I should’ve been writing checks basically.
(chuckles) And those don’t show up. There’s no place where it
shows missed opportunities, but I’ve missed some big ones. The triumphs in life are partly triumphs because you know that everything isn’t going to be a triumph. And I would never get
too hung up on mistakes. I know a lot of people that
really agonize over them. And it just isn’t worth. I mean, tomorrow’s another day
and you’ll live it forward, and just go on to the next thing. I advise students, as much as possible, look for the job that you would take if you didn’t need a job. I mean, don’t sleepwalk through life, and don’t say it’s all going to be great. I’ll do this and I’ll do that. I’m just marking time to be over. I’ve told people, that’s
like saving up sex for your old age. I mean, it just is not…
(audience laughing) It is not a good idea. (audience applauding) – [Charlie] What are
you urging them to do? – I’ll explain…
(audience laughing) Just what I’m talking about. Now if… You really want to be
doing what you love doing. And you can’t necessarily
find it on your first job. But don’t give up before you find it. – What brings you the most satisfaction, beyond family? – Well… Greatest satisfaction is
just staying in good health. I mean, when you’re 86, I mean, you look at this a little
differently. (chuckles) – [Charlie] So you’re in good health? – Oh yeah, yeah. I mean, I enjoy everyday. I enjoy– – [Charlie] But what is it that you enjoy? – Well I enjoy running Berkshire. I mean, if you get
right down to my psyche. – [Charlie] That’s what
I want to (mumbles). – Yeah, no, it’s been my
painting for 50-some years. I get to paint what I want. I don’t have to do, follow what Wallstreet is telling
me to do in that quarter or something like that. So I own the brush, I own the canvas, and the canvas is unlimited. Now that’s a pretty nice game, and I get to do it everyday
with people I like. I don’t have to associate with anyone that causes my stomach to churn. If I were in politics, I’d have to smile at a lot of people that
I want to hit, you know. – [Charlie] You just don’t talk to them. – So it’s really, I’ve got a good deal, and I’m hanging on to it. (chuckles) – I’d like to know, we all consider you to be the financial business experts, and we look to you and follow your lead. But when you need advise and feedback about an idea or
decision, I’d like to know who do you go to. – Well usually I look in the mirror. (audience laughing) (audience applauding) The nature of what I do means I have to think
pretty much independently. Because if I take a poll, in effect, I’m going to do what
everybody else is doing, and I don’t think much of
that usually in investments. And so I have to have an environment, I have to have a temperament personally, that lets me think for myself. And I’ve got a terrific partner, fella named Charlie Monger. And you can’t find anybody smarter, any better quality of anything. But we think a lot alike, and we do talk things over occasionally, but we don’t talk them over very often, because I know how he
thinks, he knows how I think. He’s taught me a lot,
and why should I pay for a phone call if I know
what he’s going to say. (audience laughing) So if I need to get a cabinet around to make decisions or anything like that, I probably shouldn’t be running the place. And that doesn’t bother me
to have the responsibility for it, but I just don’t
want to put it up to a vote. Because I’ve seen too many, particularly in investment world, as you get larger and larger
groups making the decisions, they get more and more homogenized. And I don’t think you will ever get brilliant investment decisions
out of a large committee. I always look at IQ and talent as sort of representing the horsepower of the motor. But then in terms of the
output, the efficiency with which the motor works,
that depends on rationality because a lot of people
start off with 400-horsepower motors and get 100 horsepower of output. And it’s way better to
have a 200-horsepower motor and get it all into output. So why do smart people do
things that interfere with really getting the output
they’re entitled to? And it’s, it gets into habits, into character, into temperament. It really gets into behaving
in a rational manner and getting in your own way. As I say, everybody here as the ability, absolutely, to do anything
I do and much beyond. And some of you will
and some of you won’t. But it will, the ones that won’t, it will be because you
get in your own way. It won’t be because the
world doesn’t allow you to. It will be because you
don’t allow yourself. You will move in the
direction of the people that you associate with. So it’s important to
associate with people that are better than yourself, and
actually the most important decision many of you make, not all of you, will be the spouse you choose. And you really, you want to associate with people who
are the kind of person you’d like to be. You’ll move in that direction. And the most important person, by far, in that respect is your spouse. I can’t overemphasize
how important that is. And you’re right, the friends you have, they will form you as you go through life. And… make some good friends, keep
them for the rest of your life, but have them be people that
you admire as well as like. My old fashioned belief that I can only should expect to
make money and things that I understand, and
when I say understand, I don’t mean understand
what the product does or anything like that. I mean understand what the
economics of the business are likely to look like 10 years from now or 20 years from now. I know in general what
the economics of, say, Wrigley chewing gum will
look like 10 years from now. Internet is going to change
the way people chew gum. It isn’t going to change
which gum they chew. If you own the chewing
gum market in a big way, and you’ve got double mint and spearmint and juicy fruit, those
brands will be there 10 years from now. So I can’t pinpoint
exactly what the numbers are going to look like exactly on Wrigley, but I’m not going to
be way off if I try to look forward on something like that. Evaluating that company
is within what I call my circle of competence. I understand what they do, I understand the economics of it, I
understand the competitive aspects of the business. So figuring out the economic consequences. TV: I think there’s, I
don’t know, 20, 25 million sets a year sold in the United States. I don’t think there’s one of them made in the United States anymore. You’d say, TVs that manufacture, what a wonderful business. Nobody had a TV in 1950, thereabouts, ’45 to ’50. Everybody has multiple sets now. Nobody in the United States
has made any real money making the sets, they’re
all out of business. The Magnavoxes, the RCAs,
all of those companies. Radio was the equivalent,
over 500 companies making radios in the 1920s. Again, I don’t think there’s
a US radio manufacturer at the present time. But Coca-Cola, you know, what was it, 1884, Jacob’s
pharmacy, whatever, this fellow comes up with something. A lot of copiers over the years, but now you’ve got a company that is selling roughly 1.1
billion eight-ounce servings of its product, not all
Coke; Sprite and some others, daily throughout the
world 117 years later. So understanding the
economic characteristics of a business is different than predicting the fact that an industry
is going to do wonderfully. So when I look at the Internet business and I look at tech (mumbles), I say this is a marvelous thing. And I love to play
around with the computer, I order my books from Amazon
and all kinds of things. But I don’t know who’s going to win. Unless I know who’s going to win, I’m not interested in investing. I’ll just play around on the computer. (audience chuckling) Defining your circle of competence is the most important aspect of investing. It’s not how large your circle is. You don’t have to be an
expert on everything. But knowing where the
perimeter of that circle of what you know and
what you don’t know is and staying inside of it is all important. Tom Watson Sr. started IBM, said in his book, he
said, “I’m no genius,” he said, “but I’m smart
in spots and I stay “around those spots.” And that is the key. So if I understand a few things, and I stick in that arena, I’ll do okay. And if I don’t understand something, but I get all excited about it because my neighbors are talking about it, the stocks are going up, everything, I start fooling around someplace else, eventually I’ll get creamed, and I should. Well in 1973, the Washington Post company
gone public in 1971, right about the Pentagon Papers time. But in ’73, the Nixon Administration, was, through Bebe Rebozo,
who was a pal of Nixon’s, they were challenging the licenses of two of the Florida television
stations the Post owned. So the stock went from 37 down to 16. Now at 16, there were about five million shares outstanding, so
the whole Washington Post company was selling for $80 million. And that included the
newspaper, four big TV stations, Newsweek, and some other assets, and no debt to speak of. So the Washington Post company,
which was intrinsically worth four or $500 million, was selling for about $80
million in the market. We bought most of our stock
at about the equivalent of $100 million in the market. And it was ridiculous. You had a business the
unquestionably was worth four or five times what
it was selling for. And Nixon wasn’t going to
put them out of business. – When you’re doing these
analyzes, then and now, do you have computers that help you? Or how did you actually read all, were you just printed
materials, or how did you, in those days, get the materials to read about the Washington Post? And how do you do it today? – Well, pretty much the same way, except there’s fewer opportunities now. But I met Bob Woodward back, and he’d just come out with
All the President’s Men, and all of sudden at, oh, 30 yeas of age he was getting quite wealthy. And we had breakfast or lunch
over at the Madison Hotel. He said, what do I do with this money? And I said, investing
is just about assigning yourself the right story. I said, imagine Ben Bradley
this morning said to you, what is the Washington Post company worth, what would you do, if you have to write the story in a month? You’d go out and interview TV brokers and newspaper brokers and the owners, and you try and value each asset. I said, that’s what I do, I
assign myself the right story. And it’s nothing more than that. Now there’s some stories I can’t write. If you ask me to write a story on whether some glamorous, but
non-profit-making business worth, I don’t know how to write that story. But if you ask me to
write a story on what is Potomac Electric Power worth
or something like that, I can write the story, and
that’s what I’m doing everyday. I’m assigning myself
and then I go out and– One thing I will tell
you that I didn’t realize when I was getting out
of school is how much the unusual person will jump out at you. And it isn’t because they got 200 IQs or anything like that. It’s really because of
just how they behave, what they bring, the energy they bring,
the commitment they bring, the quality of how they do things, how they treat the people around
them, all kinds of things. But you will jump out much
more than you might anticipate. One of the things you
want to be sure to do is, whether you like it or not, get very comfortable, it may take a while, with public speaking, for example. I mean, that’s an asset that will last you 50 or 60 years, and it’s a liability if
you don’t like doing it or uncomfortable doing it,
that also will last you 50 or 60 yeas, and it’s a necessary skill. But a lot of those skills
are just human skills. If you get the best out
of people around you, that’s a rare talent. And it doesn’t correlate with IQ. It correlates with an attitude toward the world and toward other people. It’s a talent that, if you work at early and you’re really conscious about it, you don’t have to show up other people, you don’t have to be
smarter than they are. You want to bring out the best in them. It will pay huge dividends. I went one-on-one with
Lebron a few years ago, and we had a jump ball. And Lebron went up, he got the tip, went the length of the court, dunked it, and just then turned around, and just then I was jumping.
(chuckles) I got lucky. Bill says if I’d been born
a few thousand years ago, I’d have been some animals lunch, because I’d have gone on
saying, well I allocate capital. The animal would say,
they’re the kind that taste the best. And I can’t run fast
and I can’t climb trees. You don’t need a lot of
brains in this business. I mean, I’ve always said, if you got a IQ of 160, give away 30
points to somebody else ’cause you don’t need it in investments. What you do need is emotional stability. I’ve got a partner (mumbles), says he admired humility enormously, but he wasn’t quite given his fair share. (audience laughing) We call on people that
have a billion or more, at least Steve tells us they do. And all we asked is 50%. So if… If you can’t, if you have trouble
living on $500 million, I’m going to put out a book,
How To Live On $500 million. (audience laughing) I don’t think I can win every game. If somebody said how do
you beat Bobby Fisher, you play him any game except chess. So I don’t play Bobby Fisher in chess. Let’s do it here now. ♫ Now the end is near ♫ And so I face the final curtain ♫ My friends, I’ll say it clear ♫ I’ll state the (mumbles) ♫ Something or else on which I’m certain (chuckles) ♫ I’ve lived the life of spoil ♫ I’ve traveled each and every highway ♫ And more, much more than this ♫ I did it ♫ My way – Thank you guys so much for watching. I made this video because
a lot of you enjoyed the Warren Buffet top 10
rules to success volume one. So if there someone who you really enjoyed the volume one of, and you
want us to do a volume two, let me know, let in in the comments below, and I’ll see what I can do. I’d also love to know what did Warren say that had the biggest impact on you? What lesson are going to take from this and immediately apply it to
your life or to your business? Leave it in the comments below. I’m super curious to find out. Finally, I wanted to give a
quick shoutout to Riza Pereira. Riza, thank you so much
for picking up a copy of my book, Your One Word, and sharing that picture with me. I really, really, really,
really appreciate it. So thank you guys again for
watching. I believe in you. I hope you continue to
believe in yourself. And whatever your one word is, much love, I’ll see you soon. – The whole long-term capital management, and I hope most of you
are familiar with it, but the whole story is really fascinating, because if you take John Meriwether and Eric Rosenfeld, Larry
Hildebrand, Greg Hawkins, Victor Agani, the two Nobel Prize winners, Murtin Sholes, if you take the 16 of them, they probably have as high an average IQ as any 16 people working
together in one business in the country, including Microsoft or wherever you want to name. So there’s incredible amount
of intellect in that room. Now you combine that with the fact that those 16 have had
extensive experience in the field they are operating in. These, was not a bunch of guys who have made their money selling men’s clothing, and then all of a sudden went
into the securities business. They had, they’d had, in aggregate,
the 16 probably had 350 or 400 years of
experience doing exactly what they were doing. And then you throw in the third factor. That most of them had
virtually all of their very substantial net
worths in the business. So they had their own money up, hundreds and hundreds
of millions of dollars of their own money up,
super high intellect, working in a field they knew, and essentially they went broke. And that to me is absolutely fascinating. I mean, if I ever write a
book, it’s going to be called Why Smart People Do Dumb Things. My partner says it should
be autobiographical, but I–
(audience laughing) But this might be an
interesting illustration, and these are perfectly decent guys. I respect them, and they helped me out when I had problems with Solomon. So they are not bad people at all. But to make money they
didn’t have and didn’t need, they risked what they
did have and did need. And that’s foolish, that
is just plain foolish. It doesn’t make a
difference what your IQ is. If you risk something
that is important to you for something that is unimportant to you, it just does not make any sense. I don’t care whether
the odds are 100 to one that you succeed or 1,000
to one that you succeed. If you hand me a gun
with a thousand chambers, a million chambers in
it, and there’s a bullet in one chamber and you
said, put it up your temple, how much do you want to
be paid to pull it once, I’m not going to pull it. You can name any sum you
want, but it doesn’t do anything for me. On the upside, and I think
the downside’s fairly clear. (audience laughing) So I’m not interested
in that kind of a game, and yet people do it financially without thinking about it very much. Generally speaking, investing in yourself is the best thing you can do, anything that improves your own talents. Nobody can take it away from me. They can run up huge
deficits and the dollar can become worth far less, you can have all kinds of things happen, but if you’ve got talent yourself and you’ve maximized your talent, you’ve got a terrific asset. So that doesn’t mean everybody
should go to college, but it does mean that any
way you find to improve. Communication skills are
enormously important. I took a Dale Carnegie
course that I paid $100 for, and it was worth a college degree. At least, I thought it was. (laughing) Maybe this interview will
convince people otherwise.

100 thoughts on “Warren Buffett’s Top 10 Rules For Success – Volume 2 (@WarrenBuffett)

  1. Man that song in the end got me emotional……his final curtain……*if u can bring the best out in people…it will pay in huge dividends*

  2. what stuck out to me the most was "develop the skill of public speaking" because ive always had a problem doing that but ive never done bad at it so getting comfortable with that is something ive put off for a long time.

  3. When we do investment can fight with other,the people live with freedom the way they want. If you give me good deal I give you deal . I am not talk no nothing I talk how improve for tomorrow. If I put one you walk away push a way how Can I put more 10 .

  4. Not everyone stay high all the time ,need move follow situation ,some time lose for win this a lots miss understand that smart the way you move .

  5. The Biggest Impact Warren Said, concerning his worst failures, " he knew enough about a business or what do to but he didn't carry out or follow through to do what he knew how to do and missed out on some of the biggest opportunities," I want to all ways member that one.

  6. Warren Buffet has profited handsomely from the tax loophole called carried interest. What this does is allow Warren to pay tax at the lower capital gain rate, when the rest of us peons pay at ordinary rate.

  7. I have no words How I get all these great people, In short, my honourable Mr Warren Buffett's says in his own words that "All in one" how to develop "motivation" is the main thing which we live in. so very great for me.

  8. Don’t dwell on mistakes!
    I’m always amazed how sharp no matter what age these people are!
    Amazing ❤️

  9. Bravo bravo bravo Evan.
    And watched this right till the end of Warren Buffett singing I Did It My Way- which was stellar.
    Him singing that will be worth a fortune one day when he's not of this Earth any longer and all we have is his wisdom to appreciate and learn from, which I hope isnt for many years to come.

    I love the comment that he made about making a list of all the things you can't stand about people- and making sure you don't possess those qualities! And then also making a list of the things that you admire about people and making sure you possess those things.
    I shared this on www.TotallyInspiredMind.com.

    Paulette Motzko

  10. I like how he spoke about not having to be highly intelligent, or intelligent at all to be a successful business man. Which is something I've known for years. It's just a matter of having desire, discipline, dedication, and etc. to reach that level of success.

  11. “Don’t dwell on mistakes”
    “Take job you would take if if you didn’t have job”
    “Be rational”
    “Know your competent circle”(what to do what not to do)

  12. One wouldn't truly know the lives they have touched or mentored until they here the words THANK YOU. THANK YOU WARREN BUFFET.

  13. For investing you dont need huge IQ but just around 160 and some Emotional stability. I take this as i think i am not very intelligent as i keep on forgeting things…keep doing dumb things. Warren has his mercury in virgo of 11th house. That gave me an idea how much rational and intelligent he is. But yet he said it is EQ that matters and not IQ.

  14. EVAN I Really enjoy your. VIDEOs featuring very successful people sharing their business experiences and ADVICE for success.

  15. "I own the brush I own the canvas" speakes to me about the freedom we have as a gift to own our stuff be responsible and live. Live!

  16. If you risk something you need to get something you don’t need
    It’s foolish
    I don’t care how much IQ OR intellect or experience you all have 😍🌈🖐🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻👍🏻

  17. "I try to advice my students as much as a I can to look for a job that you would take if you didnt need a job" – Warren Buffet

  18. Dude, that was bad ass. The thing thing that stood out to me the most is when he talked about assigning yourself a story. That you don't need to be super smart to learn how to invest well.

  19. "Surround yourself with great people" do true as the people we associate with can have an influence ôn us. Great advice. I love how warm and welcoming he is. Great man.

  20. "Don't sleepwalk through life" — Warren Buffett

    Unfortunately, so many people do this. It really seems as though almost everyone does this. I've even caught myself in this mindset. I have to remind myself to be more active in my approach to the future.

  21. He spoke about your spouse being one of the decision that shapes ones investment life.

    Never heard a billionaire say that before.

  22. Thank you for creating this channel, —very helpful, inspirational and educational. We appreciate your hard work and contribution! Many thanks!

  23. Warren Buffett"s Top 10 Rules : I would like to say about one rule among 10 rules and that is in favor of me, is "INDEPEDENTLy" So I am doing what I want to do I am not depend on any other that is most important thing because of many people have so many problem sometimes they live in a very big family so we can imagine it how they maintain this the example but in those problem they can not do anything sometimes ability, capability, skill finance, experience, and many more factor making an important role in the business or carrier,
    Above all I have no problem now Once upon a time it was happened but now I am free from them so for the short term I have little money and I have change my earning point so from the one point I am secure in money matter that is my great plus point so skill ability and above all factor I can deal with them in my case.
    thanks so much for to deal with me.

  24. he said if your iq is 160 u can give 30 points to someone else because you don't need it, what u need is emotional stability!

  25. "If you risk something that is important to you for something that is unimportant to you, it just does not make any sense."

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