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LESSONS OF SUCCESS

Lessons of Success: Warren Buffett

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As of July 2020, Warren Buffet has been valued at $67.5 billion and is the fourth wealthiest man in the world. The 89 year old Omaha native first developed an interest in business and investing in his youth and after completing degrees from the University of Nebraska and Columbia Business School, went on to make billions through a series of smart investments.

Today Prophets of success brings you the lessons of success from Warren Buffet.

Before we get into the video, thank you for joining the Prophets of Success, a channel where the most successful people come to up their game.

Lets start with number 7

7. Invest in yourself

In a time when insight and self-improvement is commonplace, this piece of advice may be easier to comply with. Warren Buffet has often talked about how he knew he needed good speaking skills to be able to convince investors to join his partnership. And so, he did the smart thing and took classes on public speaking.

According to Buffet, developing a new skill, getting exercise, or even sleeping enough is a big step towards self-improvement and will always pay off.

It’s important to note that not everything has to be related to work and being a money-making machine. Anything you do to improve yourself will help you. As you’ll see later, money does not equal success

6. Spend your money wisely

This might seem obvious, but it’s a lesson rarely practiced in daily life.

Despite his wealth, Warren Buffet is famous for living frugally.

He has lived in the same house he bought in the 50’s and gets McDonald’s every morning with the change his wife gave him.

In 2006, his annual salary was about $100,000, which, lets face it, is nothing compared to his fellow Forbes A-listers.

In 2013, he had an old Nokia flip phone and had sent one email in his entire life.

Fortunately, he hasn’t remained in the Dark Ages. In February 2020, he revealed that he had traded in the flip phone for (wait for it) an iPhone 11. If that’s not frugal, I don’t know what is.

Additionally, he has said to be careful of small expenses that can kill a business silently.

Things like missing stock, postage and packaging costs, and an exorbitant number of paper cups being used at the office. Things like these can creep up on people and cost businesses a massive loss in profits. If you think about it, that’s good advice for everyday life, not just for running business.

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Back to the video

5. Be careful when it comes to borrowing

We’re all guilty of going on a spending spree and maybe maxing out our credit cards on the latest games console or the latest Chanel bag.

We’re only human after all.

But if you’re in a habit of maxing out your credit cards and taking out loans, you’re not exactly on the track to becoming rich.

Debt isn’t great at the best of times and it’s especially terrible when you’re trying to invest.

Buffet has never borrowed a large sum of money and has said that those in debt should try to pay off their outstanding loans and start saving so they can get on the road to investing their savings.

In an interview with CNBC, Buffett pointed out, “It’s insane to risk what you have and need for something you don’t really need… You will be way happier if you double your net worth.” So think about this the next time you whip out your credit card for your next extravagant purchase.

4. Have a clear definition of success

For many, success is hinged on their bank statement, their house, or their car. Some might take extravagant vacations to island paradises like Maui or Bora-Bora, or renovate their house so they can have their own Bat-Cave.

No matter how you define success, you should know that none of the stuff we just mentioned matters. Despite being one of the richest men in the world, Buffet doesn’t measure his success by his net worth. He’s said on countless occasions that he plans on giving most of it away to charities, especially the Bill and Melinda Gates Foundation in addition to the countless other charities and foundations his family run.

In fact, in 2008, he was ranked by Forbes as the richest person in the world with an estimated net worth of $62 million. Well, in 2009, he donated billions of dollars to charity and fell to the rank of the second richest man in the USA.

So, as you can see, he obviously doesn’t care about money.

Then how does Mr. Buffet define success? He says that success is more about having lots of people around you that love you and that you love too.

Think about that the next time you envy someone’s Ferrari.

3. Assess Risks

Buffet has often spoken about how wise investors say no more often than they say yes. It’s a simple mindset which sounds almost nonsensical. After all, how can investors earn without taking a few risks?

Well, according to Buffet, it’s better to think things through before you act because it’s easier to say no than it is to come back from a 30% investment mistake.

This doesn’t just apply to investments; he applies this to the investors as well and only works with people he absolutely trusts. Buffet’s company Berkshire Hathaway takes a hands-off approach to managing its companies, but it does take the time to vet its business associates carefully and is always looking for good and honest people with talent. Makes sense when you’re working with billions of dollars.

2. Think about things in the long-term

It can be tempting to use the money you get from your investments as profit and spend it on your next vacation (or that new watch). But the smarter thing would be reinvest it back into the stock market as this will reap more profits.

It’s the same with bank interests. The longer your money is tied up, the larger percentage of interest you will get. Warren Buffet learned this early on.

In 1945, as a high school student, he spent $25 to purchase a pinball machine which they placed in a barbershop.

Within months, they owned several more machines in various barber shops around Omaha. They later sold this business for $1,200. Do the math.

Two highschool kids turned $25 into $1,200 within a year.

If that wasn’t impressive enough, he used the money to invest in a business owned by his father and bought a 40-acre farm where a tenant farmer worked.

By the time he graduated college, he had accumulated $9,800 in savings which is almost $105,000 today.  When you do the math, you can see how this humble teen with an interest in the stock market became the man we all know today.

Before we get into the number one lesson from Warren Buffet why not check out a great follow on video from this looking at the Biggest IPOs in History, we look at companies such as Facebook and AT&T and see how they became the biggest IPOs in History. Click the link in the top right corner to watch this video or there is a link in the description below.

But lets get back to the video.

And here we are: number one. What do you think the Oracle of Omaha says is the most important lesson of success?

1. Be Happy

Much like his definition of success, Warren Buffet has a simple philosophy about being happy: just do what you love. He has said on many occasions that he loves what he does and was quoted as saying, “I can’t buy time, I can’t buy love but I can do anything else with money, pretty much.

And why do I get up every day and jump out of bed and I’m excited at my age? It’s because I love what I do and the people I do it with.”

It may seem sappy, but he’s right. There’s no point in going through life being unhappy. Buffet loves what he does and is completely in love with it.

In a time when so much of our self-worth as people is hinged on our ability to work and contribute to capitalism, it is easy to forget that our self-worth should be dependent on our happiness rather than how much money we make.

Hey Prophets you stayed until the end and that can only mean one thing, you are destined for success, if you made it this far type “Oracle of Omaha” in the comments below so we know who made it to the end.

Until next time Prophets, thanks for watching and keep on striving for success.

Why not check out some of these videos on the screen now which we think you will like and will help you to become the most successful version of yourself.

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LESSONS OF SUCCESS

Lessons of Success: Elon Musk

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Lessons Of Success: Elon Musk

Hello everyone, thank you for joining the Prophets of Success, a channel where the most successful people come to up their game.

To get you ready for the week ahead, Prophets of Success brings you lessons of success, this is a new feature which we will be running every Sunday to get you ready for a week of success.

This week we present life lessons from ELON MUSK’s success!

Elon Musk is the mad scientist of the real world. Famously known as the owner of Tesla Motors and SpaceX, he is currently the world’s most excelling inventors making remarkable feats in the technology sphere.

Born and raised in South Africa by a Canadian mom and south African dad, Musk later moved to Canada and then the US for his higher education.

He always had a knack for business and physics, which is what he did his bachelors and PhD in from Stanford University. He then found his first company in 1999 which was a software portal, and was bought by Compaq.

This started Elon Musks’ journey to success, launching several companies along his way, and is currently the founder of 3 major companies as well as the co-founder of several others. Forbes listed him as the 16th richest person in the world, with an astounding net worth of $59.3 billion! And that too at the age of almost 50, but Musk has been in the limelight since his early 30’s when he launched SpaceX in 2020, a one of its kind space travel private owned company.

Billionaire, engineer, quirky, philanthropist, Elon Musk is the idol personality of many young techy people and science students, and has a huge fan following for his work and for his personality.

In this blog, we are going to delve into the secrets behind Elon Musk’s rise to success and how his approach to life and work has done wonders from.

You can learn a lot from this brilliant scientist, so let’s see what his lessons have to offer.

10. Think Big

Elon Musk is a man whose ideas always cross boundaries. He doesn’t just come up with simple products that make lives easier, instead almost all his huge inventions have been major breakthroughs in technology which shift the path of science and the general lifestyle as we know it. His company SpaceX is dedicated to commercializing space travel which was previously only possible for NASA astronauts. He also launched PayPal which revolutionized the payment system and opened the era of digital banking which has now become an essential part of our lives. His automobile company Tesla Motors makes pioneer cars and trucks which beats all other car companies. See what Elon Musk means when he says ‘Think Big’? You really have to think beyond the limitations of science, and then make it happen!

9. Integrity

Tesla Motors wouldn’t have been possible without the kind of integrity and honesty Elon Musk displayed in establishing the company. To start off, he borrowed a huge loan of $200 million from the US government, and as his revenue started flowing, he paid it all off.

Elon Musk has always stayed out of trouble when it came to money matters, and knew that his businesses success depended greatly on his own integrity and faithfulness. So that’s a great lesson to take from the man of science – always keep your records straight and your business just might flourish!

Please remember to Subscribe to Prophets of Success and click the bell icon to get regular updates on daily content on success, wealth, luxury and business. You can also find us on Facebook, Twitter and Instagram.

8. Learn from failures – take those risks

It wasn’t always glory and fame for Elon Musk. The man has had plenty of failures in his career before it kicked off, but he never let the failures demotivate him. In-fact, he regards each failure as a learning experience and a point of growth, which is something we all should learn when coping with failure. Because of this approach, he was also never afraid of failure, so always took his chances whenever a seemingly whacky idea came to his head!

When he launched SpaceX, Elon Musk loaned $100 million from the government, the first $90 million of which was spent on the first two launches of the SpaceX missions, which FAILED. It was the third launch that had to be done in just the remaining $10 million which was his first success.

7. Back-up plan

Another great lesson of success to learn from the CEO of Tesla Motors – Always have a backup plan! This is a follow-up advice from the previous one, since every failure is supposed to be taken as a lesson, it makes way for a contingency plan which can better be executed. This approach in life always had Elon Musk prepared for failure, since that meant executing plan B, and if that fails, Plan C. So never rely completely or dedicate all your resources to your first idea, because there are chances it might fail, from where you can improve it and re-launch.

6. Constructive criticism

One thing Elon Musk is most interested in when he launches a new technology, rocket, or car, is feedback from the experts. He reaches out to engineers and academics to review his work, but what he’s looking for isn’t compliments, but LOOPHOLES in his design. A lot of us get demotivated when we listen to criticism about something we’ve worked so hard on, and we’re usually only looking forward to compliments. But Elon Musk teaches us that criticism actually points out your mistakes and helps you improve, which has been vital to his enormous success in Tesla Motors and SpaceX. So guys, the next time you launch a product, reach out to some experienced people in the field who can pinpoint the issues and that will help you greatly improve!

5. Never give up

We’ve talked about failure, backup plans, and receiving criticism, all somewhat negative in their own domains if you don’t have a super positive outlook towards life. Elon musk braved all the bad news, hardships, and poor reviews with a smile on his face and NEVER gave up on his dreams. During his early years when he was just sprouting in his journey, he was surrounded by professors, mentors, and other technology gurus in the field who would lift him up. But soon after announcing seemingly impossible ideas, such as the Hyperloop project, he met with cold shoulders and not as much support as he expected. This was pretty demotivating, had Elon Musk been someone who easily surrendered. But he’s a man of steel who took all the negativity and just never gave up!

4. Hard work pays off

This is some great advice from the great man himself: work beyond your limits if you want your business to become huge. Usually we go easy on ourselves when we think of an entrepreneurship idea, but these ideas need immense commitment and dedication to break through the barrier of a hundred other start-ups sprouting beside them. When Elon Musk started out his first company with his brother, they had just one PC and a small room with a couch, and they would take turns sleeping and coding, and spent days with the same routine. Today, Musk credits that as the starting point of his journey, that had he become lazy, no one would have been aware of his name today.

3. Work along your passion

Elon Musk always enjoyed engineering and space sciences, as well as the theories of physics. So when he wanted to establish his own company, he dwelled on his passion for the subjects and produced revolutionizing projects and items. What propelled him into success was that his job was something he loved and felt the most passionate about, otherwise he wouldn’t have put in even half the effort as he did. The key take-away here is that you should drop what others tell you to do and only pursue what you feel passionate for. Only then will you be really able to commit to your work.

2. Learn the fundamentals

One thing all great CEOs including Elon Musk have in common is that they’re the experts in their own business. Elon Musk wasn’t a layman who just wanted to sit atop an automobile company that he had no clue about. He himself was an engineer and pursued a PhD in physics so was well educated about the mechanics and functionality of machines, which led to him charting out the plans and details of everything Tesla and SpaceX comes up with. And this has been very useful to him: whenever his engineers express limitations of a technology, Elon Musk studies it and always improvises to make it work to his taste.

1. Keep a great vision

Perhaps the key to Elon Musk’s success is his great vision and natural leadership qualities. He wanted to change the world as it was, and for that he needed a team of engineers and ideators who shared his vision and were enthusiastic about his goals. THIS is very important. No successful person achieves success on their own, and they always need a team of dedicated people to bring their dreams to reality, while keeping them motivated throughout. So that’s a pro lesson you guys can take from today’s best scientist – if you want to achieve success, establish a team of like-minded people who share your vigour to innovate and succeed!

Hey Prophets you stayed until the end and that can only mean one thing, you are destined for success, if you made it this far type “Go Elon!” in the comments below so we know who made it to the end. Until next time Prophets, thanks for watching and keep on striving for success.

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