Should You Heed This Advice From Warren Buffett?
- Warren Buffett is one of the best investors of all time.
- He thinks that really successful people differentiate themselves by saying no to almost everything (like hot new investments) and staying within their circles of competition.
If you hope to be very successful professionally or financially, it can help to heed the advice of others who have achieved that dream.
Warren Buffett is one of those people whose advice you might want to listen to. The self-made billionaire is one of the greatest investors of all time and has managed to build a large business empire that has provided him with untold wealth.
Buffett gave a simple explanation of what separates “really” successful people from others, and this advice is especially worth considering when making your own life choices.
Could this be the key to true success?
So what does Buffett think sets successful people apart from others?
“The difference between successful people and really successful people is that really successful people say no to almost everything,” Buffett said.
Buffett implemented this strategy himself, choosing not to participate in certain types of hot investments even as others jumped in. One example is cryptocurrency, in which the famous investor made it clear on several occasions that he was not interested in investing, even as a growing number of Americans adopted this asset class.
Buffett was also slow to jump into tech stocks in the early 1990s and 2000s, but years later indicated that he doesn’t regret staying out even though there were some missed opportunities.
“I don’t worry about the things I miss that are outside my circle of competence to evaluate,” Buffett said. “It’s not a mistake because I miss Netscape or something.”
Should you follow this advice?
Buffett’s advice can come in handy when you’re making decisions about what to do with the money in your brokerage account. There are tons of people out there who can try to convince you to invest in something because they get a commission or commission for doing so or because they genuinely believe it’s the right course of action (even if they don’t necessarily know if it’s true for you).
You shouldn’t necessarily jump on many or most of these ideas, but you should develop your own solid investment plans and stick to them while saying no to everything outside of your comfort zone.
But, Buffett’s advice can go far beyond saying no to investments that don’t fit your careful plans. It can also apply to other financial and life decisions you make. For example, you don’t want to overcommit to activities you don’t enjoy, and you don’t want to say yes to spending money on things you don’t value just to keep up with the Joneses or because you feel like it. it is the common thing to do.
If you define what you want your personal and financial life to look like, you can set clear boundaries and say no to anything that doesn’t fit within them. It may feel uncomfortable not to do what others say or what others ask of you, but you are in the best position to prepare for the future you want. You should avoid saying yes to anything that takes you off that path.
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