June 18, 2015 - No Comments!

Warren Buffett’s Philosophy on Life

What does a multi-billionaire like Warren Buffett value in life? In numerous interviews, Buffett has repeatedly shed light on his profound appreciation for the essential things in life.

“I don’t think standard of living equates with cost of living beyond a certain point. Good housing, good health, good food, good transport. There’s a point you start getting inverse correlation between wealth and quality of life. My life couldn’t be happier. In fact, it’d be worse if I had six or eight houses. So, I have everything I need to have, and I don’t need anymore because it doesn’t make a difference after a point.” 

Buffett currently lives in a house he purchased back in 1958, which is currently valued at approximately $652,619. Unlike most millionaires and billionaires who live in mansions, he has proven to be someone who enjoys the purpose of a home and not the status of it. Buffett additionally pledged to donate 99 percent of his fortune to charity, which, again, reflects his attitude towards money.

Buffett's outlook on life is also simple. These quotes by Buffett (except #6) perfectly sum up his ideology on what we should do to be happy:

1. Invest in yourself before anything else

"Investing in yourself is the best thing you can do--anything that improves your own talents."

2. Break bad habits or they'll break you

"The chains of habit are too light to be felt until they are too heavy to be broken."

3. Understand your strengths and weaknesses

"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, and staying inside of it, is all important."

4. We spend a third of our lives working, so finding a job you enjoy is key

"You really should take a job that, if you were independently wealthy, that would be the job you would take."

5. Surround yourself with the right people

"Pick out associates whose behavior is better than yours and you'll drift in that direction."

6. Utilize your time effectively

"There are only 24 hours in everyone's day. Warren has a keen sense of this. He doesn't let his calendar get filled up with useless meetings." (Bill Gates)

7. Seize opportunities

"We don't do very many things, but when we get the chance to do something that's right and big, we've got to do it. And even to do it in a small scale is just as big a mistake almost as not doing it at all. You've really got to grab them when they come because you're not going to get 500 great opportunities."

Buffett reminds us that we are our most precious asset. This message may get lost in our aspirations and our possessions, but take it from a billionaire, invest in yourself, don't waste your time, do something you love, be daring, and surround yourself with people you admire.

About KNOLSKAPE:

Using past stock price data, events from previous fiscal years, KNOLSKAPE has developed eValuation, a cutting-edge software that helps simulate a year in the life of an Analyst who is tasked with making stock recommendations of certain companies from a pre-assigned industry. Learners are rewarded for their decisions based on the returns they provide to their investors and the accuracy of their Buy / Sell / Hold calls. Financial statements and news events that appear from time-to-time keep learners engaged and under pressure to make the right decisions.

eValuation helps deliver the following learning outcomes:

1) Interpret a firm’s financial statements to understand impact on its stock price

2) Discern between high and low impact news events that can cause major fluctuations in a firm’s stock price.

3) Use different valuation methods such as discounted cash flow and price-to-earnings ratio to accurately value the company and at arrive at useful recommendations for virtual investors.

References:

http://www.inc.com/minda-zetlin/9-things-warren-buffett-says-you-should-do-to-be-happy-and-successful.html

http://psychcentral.com/blog/archives/2014/08/08/how-warren-buffett-found-the-key-to-happiness/

What does a multi-billionaire like Warren Buffett value in life? In numerous interviews, Buffett has repeatedly shed light on his profound appreciation for the essential things in life.

“I don’t think standard of living equates with cost of living beyond a certain point. Good housing, good health, good food, good transport. There’s a point you start getting inverse correlation between wealth and quality of life. My life couldn’t be happier. In fact, it’d be worse if I had six or eight houses. So, I have everything I need to have, and I don’t need anymore because it doesn’t make a difference after a point.” 

Buffett currently lives in a house he purchased back in 1958, which is currently valued at approximately $652,619. Unlike most millionaires and billionaires who live in mansions, he has proven to be someone who enjoys the purpose of a home and not the status of it. Buffett additionally pledged to donate 99 percent of his fortune to charity, which, again, reflects his attitude towards money.

Buffett's outlook on life is also simple. These quotes by Buffett (except #6) perfectly sum up his ideology on what we should do to be happy:

1. Invest in yourself before anything else

"Investing in yourself is the best thing you can do--anything that improves your own talents."

2. Break bad habits or they'll break you

"The chains of habit are too light to be felt until they are too heavy to be broken."

3. Understand your strengths and weaknesses

"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, and staying inside of it, is all important."

4. We spend a third of our lives working, so finding a job you enjoy is key

"You really should take a job that, if you were independently wealthy, that would be the job you would take."

5. Surround yourself with the right people

"Pick out associates whose behavior is better than yours and you'll drift in that direction."

6. Utilize your time effectively

"There are only 24 hours in everyone's day. Warren has a keen sense of this. He doesn't let his calendar get filled up with useless meetings." (Bill Gates)

7. Seize opportunities

"We don't do very many things, but when we get the chance to do something that's right and big, we've got to do it. And even to do it in a small scale is just as big a mistake almost as not doing it at all. You've really got to grab them when they come because you're not going to get 500 great opportunities."

Buffett reminds us that we are our most precious asset. This message may get lost in our aspirations and our possessions, but take it from a billionaire, invest in yourself, don't waste your time, do something you love, be daring, and surround yourself with people you admire.

About KNOLSKAPE:

Using past stock price data, events from previous fiscal years, KNOLSKAPE has developed eValuation, a cutting-edge software that helps simulate a year in the life of an Analyst who is tasked with making stock recommendations of certain companies from a pre-assigned industry. Learners are rewarded for their decisions based on the returns they provide to their investors and the accuracy of their Buy / Sell / Hold calls. Financial statements and news events that appear from time-to-time keep learners engaged and under pressure to make the right decisions.

eValuation helps deliver the following learning outcomes:

1) Interpret a firm’s financial statements to understand impact on its stock price

2) Discern between high and low impact news events that can cause major fluctuations in a firm’s stock price.

3) Use different valuation methods such as discounted cash flow and price-to-earnings ratio to accurately value the company and at arrive at useful recommendations for virtual investors.

References:

http://www.inc.com/minda-zetlin/9-things-warren-buffett-says-you-should-do-to-be-happy-and-successful.html

http://psychcentral.com/blog/archives/2014/08/08/how-warren-buffett-found-the-key-to-happiness/

Original Photo: Daniel Acker/Bloomberg via Getty Images

Published by: KNOLSKAPE in Blog

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