When you think ‘billionaire’ Warren Buffet is one name that’s sure to come to mind. Buffet’s claim to fame is not just the extraordinary wealth that he has managed to amass, but also his integrity and wisdom. In the big, bad world of ugly riches, he’s known to be an ethical man who believes in giving back to society.
Needless to say when Mr. Buffet gives advice, you can bet it’s worth listening to.
1. Dream Big. Warren Buffet believes that to achieve big results, you have to take the giant leap of investing big. Doing the ‘big, scary thing’ is what could earn you amazing rewards provided you’ve done your homework.
2. Focus On Current And Consistent Gains. Any idea you’re investing in must show consistent earning power, now and into the future. Don’t fall for pitches that promise ‘future pay-offs’ and ‘potential turnarounds’ — they could spell disaster if you don’t have money to lose.
3. Don’t Build The Ship While You Sail It. If you’re an investor, putting all your money in an enterprise that hasn’t taken off could explode. Especially for first time investors, its best to buy shares that are already paying good dividends instead of plunging into unknown waters.
4. Insist On Clear Contracts. Business agreements should be simple so that both parties are clear about the terms and conditions. Complex technicalities may just be one way of reducing your dividends, so beware of them.
5. Make Fair Deals. This is where the ‘Buffet Ethic‘ comes in — The world’s most successful businessman believes that the best deal is one where the investment of money, time, labour, and passion of everyone involved pays off, and no one is left hanging.
You may not become an overnight millionaire listening to Warren Buffet, but you’re sure to become a more socially responsible investor — and the world needs many more of them indeed.