I decided instead to comb through Bloch’s book
to find nuggets of general wisdom that Buffett
might have for success in life. I was looking for
advice that might be appropriate for my
teenagers or for the 20-somethings that I know.
After all, Buffett is 85 years old and even if one
were to somehow ignore the $61 billion in net
worth he has amassed over his lifetime, it’s
arguable that in many ways he has lived an
exemplary life. Forbes chronicles the lives of
many successful billionaires but few are as
admired and respected as Buffett (by contrast
think of the travails of Donald Trump and
Stewart Rahr). Buffett has a Jimmy Stewart
quality – he is both ethical and humble.
Below you will find 10 of Warren Buffett ’s “life”
quotes that I think could benefit just about
anyone—even those who have no interest in
investing. In some ways Warren’s wisdom
represents the wisdom of people born during the
Great Depression. I will admit that many of his
quotes remind of things I would hear my father
say. Unfortunately, I can’t say I have always
listened.
1. “It’s better to hang out with people better
than you. Pick out associates whose behavior
is better than yours and you will drift in that
direction .”
This is Warren coming down in favor of nurture
in the old “nature versus nurture” argument. It
makes me think of the practice of “keeping the
bar high” especially during formative years.
One practical application would be to send your
children to the most competitive, rigorous school
they can get into and you can afford. You will
save no money in the long run sending your
offspring to a college where she will not be
challenged and is generally at a higher level
intellectually than all of her peers. It’s one
reason that I have advocated seeking out top
colleges ranked by SAT scores [ see top 100 SAT/
ACT ranking]. Regardless of how politically
incorrect it may be, standardized tests like the
Scholastic Aptitude Test are highly correlated to
IQ and often, are reliable predictors of success.
2. “Money to some extent sometimes lets you
be in more interesting environments. But it
can’t change how many people love you or how
healthy you are.”
This Buffettism is all about work-life balance.
We all know people who neglect their families
and health in pursuit of the almighty dollar. Just
think of 19th century miser, Hetty Green, once
the richest woman on Wall Street. By most
accounts she lived miserably, her children
resented her and despite her goal of keeping her
$100 million fortune in tact it was eventually
dispersed and she has long since been forgotten.
3. “What the wise do in the beginning, fools do
in the end.”
Boy Scout motto “Be Prepared” comes to mind
for this one. When you set out to accomplish a
goal, do your research first and lay the proper
groundwork to succeed. Many investors for
example, make impulsive stock buys, say for hot
IPOs, and then sit down to do the hard work of
assessing the actual value of the company after
the stock is in their portfolio. During the dotcom
bubble of 1999 and 2000, this risky practice was
rampant.
4. “The difference between successful people
and very successful people is that very
successful people say “no” to almost
everything.”
Buffett’s highly selective 60-plus year investing
history is an excellent example. He and Munger
have turned down or “passed” on many more
stocks than they have been offered. The same
thing holds true for super successful actors like
Meryl Streep , who is finicky about the roles she
accepts.
5. “Never ask a barber if you need a haircut.”
No matter who you are dealing with, remember
to consider motives of any person sitting across
the table from you. Virtually everyone has their
own agenda.
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