- Love the work you do
Simply and clearly, when you love what you do, you will be successful in it. Buffett adheres to this rule, stating that if a person is passionate about his work, then he “will not work a day in his life.” He also advises us to do a job that we love, something that will help us. made us jump out of bed every morning..So what do you really want to do?
- Stop sucking your thumb
Have you ever dragged on to do something for too long to end up doing nothing? This is what Buffett calls “thumb sucking,” or in other words, slowing down, procrastinating, and avoiding something that may allow you to finally begin to achieve your goals. We all do, and Warren Buffett is no exception.
In a letter to Berkshire Hathaway shareholders in 1989, Buffett said he missed several large purchases that he understood and were served on a silver platter, so neither he nor BRK’s shareholders benefited from the deal. The lesson? In the most important decisions in life, study the issue carefully and wisely, extract all the information and then act quickly on your decision. Act with clarity of mind, determination and readiness.
3. Do not judge yourself by other people’s standards
When setting the bar for your own goals, don’t fall into the trap of measuring your success by others. Instead of looking at someone else’s plate, use one of Buffett’s famous rules to measure yourself, namely your “internal scorecard” that sets your own standards, not what the world is. imposes on you. This “card” comes from within and speaks your truth and how you see the world through your own thoughts, values and beliefs, and not someone else’s. This is how the path to success comes from the heart.
Chewy’s co-discoverer, Ryan Cohen , shares the unforgettable lessons he learned from his father, Ted Cohen and Warren Buffett. When Ryan created an online pet accessories and supplies store, a competitor of Amazon and Pets.com, he ignored the negative opinion of everyone around him.
He developed and sold the company for $ 3.4 billion in 2017, and the following year resigned as CEO by investing most of his wealth in just two stocks: Apple and Wells Fargo and then place a counter-bet on GameStop. Cohen explains his independent approach with the influence of two important people in his life, his greatest role models – his late father – Ted Cohen and Warren Buffett. Buffett and Cohen also share some portfolio positions and opinions on finance.
He says that thanks to them he has learned to “split from the crowd” and to think individually. Thus, he blocks all side noise on his way and manages to focus on his own point of view. Everyone was against his idea of pet products and had a lot of trouble raising his start-up capital, but he ignored the skeptics and things that distracted him and achieved his ultimate goal. He did not miss any opportunities on his way because he thought with a clear mind and purposeful thought and created a unique business model at competitive prices, innovative products, fast delivery and personalized service.
Investing like Buffett
After selling Chewy, Cohen did not follow the traditional investment approach of a diversified portfolio and decided to rely only on Apple and Wells Fargo. He felt good about the decision he made, especially when it came to the AAPL, which Buffett described as “perhaps the best business I’ve ever heard of.”
Giving Cohen focus, independence and investing with real convictions are not the only strategies he shares with Buffett. Ryan has a strictly disciplined capital allocation system and spends his money strategically and responsibly. Buffett usually uses Berkshire subsidies and cash flows to distribute them where they are most needed.
Cohen chose to sell dog food because he realized that consumers were willing to do anything to save someone another dollar when feeding your pet. He preferred food because it offered thinner margins than toys and clothes, as well as a longer “life” of the merchant-customer relationship, thus generating more revenue in the long run. Buffet sympathizes with companies that sell important and necessary goods, such as dog food – needed every day.
Junior Trader Kameliya Ivanova