Transcript

Warren Buffett makes more money than most countries GDP. He is the ultimate do more with less investor. He drives a modest car. He gets McDonald's breakfast every morning. He lives in the same house he bought for $31,000 in 1958. His wealth grows $37 million per day. Yet he lives like a middle class retiree. I as that as wealth isn't built on spending, it's built on saving. At age 11 he bought his first stock. At age 14 he was making 175. Plus, per month delivering newspapers by 16, he'd saved the equivalent of $53,000. The habit was clear early. Save aggressively. But saving was just the start. Buffett's real genius was the circle of competence rule. Only invest in what you understand. He actually passed on early investments in Google and Amazon because he admitted he didn't understand the tech industry well enough. Buffett's investment criteria are simple. Find companies that have low debt levels. Consistent profits, strong brand power, quality management and an easy to understand business model. If you can explain to an 8 year old how the money gets made, don't invest. Here's his most controversial rule. Be fearful when others are greedy and greedy when others are fearful. In other words, buy quality companies when everyone is panicking and selling. It's how he made billions during market crashes. But his most powerful tools are using compound interest and patience. From 1988 to 1994, Buffett accumulated 400 million shares of Coca-Cola stock for $1.3 billion. Today, those shares pay him $700 million in dividends every year. That's 54% of his original investment back annually. So what's the wealth formula that made him billions? One, live below your means to avoid all unnecessary debt. Three, save aggressively. 4, invest in what you understand. 25 Hold for decades. 6 Ignore market panic. 7 Let compound interest work its magic. Warren Buffett is the man. I hope you find some inspiration from this video.