10 Ways to Get Rich
Previous-
Nati Harnik, AP
Warren Buffett's Secrets
That Can Work for YouWith an estimated fortune of $62 billion, Warren Buffett is the richest man in the entire world. In 1962, when he began buying stock in Berkshire Hathaway, a share cost $7.50. Today, Buffett, 78, is Berkshire’s chairman and CEO, and one share of the company’s class A stock is worth close to $119,000. He credits his astonishing success to several key strategies, which he has shared with writer Alice Schroeder. Click forward to see some of his best secrets!
Next: Warren Buffett's SecretsMore from PARADE:
-
No. 1: Reinvest Your Profits
When you first make money, you may be tempted to spend it. Don't. Instead, reinvest the profits. Buffett learned this early on. In high school, he and a pal bought a pinball machine to put in a barbershop. With the money they earned, they bought more machines until they had eight in different shops. When the friends sold the venture, Buffett used the proceeds to buy stocks and to start another small business.
Next: Be willing to be differentMore from PARADE:
-
No. 2: Be Willing to Be Different
Don't base your decisions upon what everyone is saying or doing. When Buffett began managing money in 1956 with $100,000 cobbled together from a handful of investors, he was dubbed an oddball. He worked in Omaha, not on Wall Street, and he refused to tell his partners where he was putting their money. People predicted that he'd fail, but when he closed his partnership 14 years later, it was worth more than $100 million.
Next: Never suck your thumbMore from PARADE:
-
No. 3: Never Suck Your Thumb
Gather in advance any information you need to make a decision, and ask a friend or relative to make sure that you stick to a deadline. Buffett prides himself on swiftly making up his mind and acting on it. He calls any unnecessary sitting and thinking "thumb-sucking."
Next: Spell out the deal before you startMore from PARADE:
-
No. 4: Spell Out the Deal Before You Start
Your bargaining leverage is always greatest before you begin a job -- that's when you have something to offer that the other party wants. Buffett learned this lesson the hard way as a kid, when his grandfather Ernest hired him and a friend to dig out the family grocery store after a blizzard. The boys spent five hours shoveling until they could barely straighten their frozen hands. Afterward, his grandfather gave the pair less than 90 cents to split.
Next: Watch small expensesMore from PARADE:
-
No. 5: Watch Small Expenses
Buffett invests in businesses run by managers who obsess over the tiniest costs. He once acquired a company whose owner counted the sheets in rolls of 500-sheet toilet paper to see if he was being cheated (he was). He also admired a friend who painted only the side of his office building that faced the road.
Next: Limit what you borrowMore from PARADE:
-
No. 6: Limit What You Borrow
Buffett has never borrowed a significant amount -- not to invest, not for a mortgage. He has gotten many heartrending letters from people who thought their borrowing was manageable but became overwhelmed by debt. His advice: Negotiate with creditors to pay what you can. Then, when you're debt-free, work on saving some money that you can use to invest.
Next: Be persistentMore from PARADE:
-
No. 7: Be Persistent
With tenacity and ingenuity, you can win against a more established competitor. Buffett acquired the Nebraska Furniture Mart in 1983 because he liked the way its founder, Rose Blumkin, did business. A Russian immigrant, she built the mart from a pawnshop into the largest furniture store in North America. Her strategy was to undersell the big shots, and she was a merciless negotiator.
Next: Know when to quitMore from PARADE:
-
No. 8: Know When to Quit
Once, when Buffett was a teen, he went to the racetrack. He bet on a race and lost. To recoup his funds, he bet on another race. He lost again, leaving him with close to nothing. He felt sick -- he had squandered nearly a week's earnings. Buffett never repeated that mistake.
Next: Assess the risksMore from PARADE:
-
Getty Images
No. 9: Assess the Risks
In 1995, the employer of Buffett's son, Howie, was accused by the FBI of price-fixing. Buffett advised Howie to imagine the worst- and best-case scenarios if he stayed with the company. His son quickly realized that the risks of staying far outweighed any potential gains, and he quit the next day.
Next: Know what success really meansMore from PARADE:
-
No. 10: Know What Success Really Means
Despite his wealth, Buffett does not measure success by dollars. In 2006, he pledged to give away almost his entire fortune to charities, primarily the Bill and Melinda Gates Foundation. He's adamant about not funding monuments to himself—no Warren Buffett buildings or halls. "When you get to my age, you'll measure your success in life by how many of the people you want to have love you actually do love you. That's the ultimate test of how you've lived your life."
Next: More from WalletPopMore from PARADE:
-
More in Money & Finance:
Celebrity Chef Secrets
Celebrity chefs all have some secrets that they would like to keep from their fans. Unfortunately, they're not all about the cooking.
Click through and find out if you've been fooled.
10 Things Celebrity Chefs Won't Tell YouRelated Links:
PERSONAL FINANCE
- Bargains
- Banking
- Budget
- Calculators
- College Finance
- Community
- Credit
- Deals
- Debt
- Economizer
- Food
- Home
- Fraud
- Insurance
- Interest Rates
- Loans
- Mortgages
- Real Estate
- Recalls
- Recession
- Retirement
- Saving
- Simplification
- Specials
- Taxes
FROM THE BLOG
- Ask WalletPop
- Consumer Complaints
- Daily Deal
- Fantastic Freebies
- Kids and Money
- Mortgage Confidential
- Reduce, Reuse, Recycle
- Relationships
- Ripoffs and Scams
- Sex Sells
- The Dolans
INVESTING
- Stock Quotes
- Stock Charts
- Stock Ticker
- Portfolio
- Stock Screener
- Broker Center
- Mutual Fund Center
- ETF Center
- Money
- 24/7 Wall St.
SMALL BUSINESS
ID Theft Horror Stories
Have you been the victim of identity theft? Tell us how having your identity stolen has turned your life into a living nightmare.
GoodNites Underpants sample
Click here to fill out a form to receive a free sample of GoodNites Underpants. According to the company:Bedwetting is more common than you think. Kids need to know they're not alone - 5 to 7 million...
Snuff out the standby mode, save money and planet, say inventors
You'll see it all over your house: that little red light on your television, your DVD player, your kitchen stereo, your coffee maker. Every electronic gadget and doodad that has a remote control has...
Where the jobs will be: Obama's green energy economy and you
One of the most poignant lines in Max Ehrmann's Desiderata is the advice that one should "Keep interested in your own career, however humble; it is a real possession in the changing fortunes of time."...
New York busts shady tax preparers
When consumers think about tax fraud, they typically think about the individuals who fail to report all their income or who take bad deductions. Many times the professional tax preparers themselves...
Why I'm holding on to my CostCo card
My name's Jennie Phipps and I'm a shopper addicted to Costco. Costco isn't much to look at -- just cement everywhere. But the quality of the merchandise vs. the prices please me and I'm apparently not...
