He’s been called the Oracle of Omaha, the Sage of Nebraska and from a young age he knew he’d be wealthy “If I had a fairly long life I knew I’d end up with a lot of money” and he was correct. His current Net worth in 2016 is $60.8 Billion ranking him as the 3rd richest man in the world. He’s accumulated his massive wealth by playing the long game and implementing value investing strategies.
But above all he’s been prioritising one investment above all that he credits to helping him the most and ensuring he’s always profiting.
So what is this investment Buffett’s so passionate about?
Thanks right it’s all about investing in yourself
“Invest in as much of yourself as you can, you’re your own biggest asset by far” – Warren Buffett
In business and life investing in yourself always pays that highest dividends and you’ll never get a better return on investment than this. This is because you are the foundation of your life and everything you learn, know and do compounds over time whether that’s learning, growing and investing in yourself or stagnating, dying and restricting yourself from developing. Your life will follow the paths you choose. So choose wisely!
So what are the ways in which you can invest in yourself?
Buffett follows the 3 pillars strategy these are: Mind, Body Spirit.
“You only get one mind and one body. And it’s got to last a lifetime” – Warren Buffett
By investing in your mind you expand your knowledge by expanding your knowledge you begin to see more opportunities and by pursuing these new opportunities you get value out of life and can even make some money in the process too.
Some practical ways you can start investing in your mind now are:
Reading: This is by far the most important. I can’t stress this enough it’s amazing how few books most people read and that might a reason most people are mediocre. A recent statistic I read stated that after High School most people only read one book a year.
While on the other hand many of the world’s most successful people read one to two Non-Fiction books a month. The reason for this is that they see the value in reading about new concepts as the more they read the more their originally knowledge base expands and ultimately the more opportunities they can spot.
The way I pitch the power of reading to my coaching clients is that it normally takes 30 days to read a book that someone has spend a few years to write and a lifetime to master their craft. So in essence if you read one book a month you effectively absorb a lifetime’s worth of work and masterly in a subject times that by 12 and thats 12 masters who have effectively taught you! Nothing compounds knowledge as much as reading.
Networking: Is essential in developing your mind and knowledge, being able to spend a few hours a month in the company of interesting, passionate people who are willing to help you.
I often go to networking event especially to find answers, I spend some time planning exactly what I need to find out and then look at the delegates list. From there on I speak with the main people who can help. I often find in these situations there is a positive attitude in which the delegates are more than happy to share their knowledge and help out and of course I reciprocate.
“It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.” – Warren Buffett
Watching documentaries: If you’re not a fan of reading then this is the next option. Many of us waste time watching junk TV. Turn that negative habit around and watch quality TV documentaries to learn new topics and subject areas or gain inspiration through show like Dragons Den, Shark Tank, The Apprentice and TED Talks
Writing: Often overlooked writing is a powerful tool. Its great for developing your thoughts and expressing yourself. It also helps you reflect on what’s happening in your life and give you a reference point of your thoughts and feelings in the future.
I try and write everyday for my blog this means that I have to research topics which helps with my personal development also I try and keep a reflective journal which again help gets my thoughts down on paper which I can come back to later.
One amazing method I came across earlier this week was the Bullet Journal which helps you organise your life and reflect on what’s going on.
Speaking / Teaching: We all know reading helps you gain knowledge but speaking to people about what you have just learnt and teaching other reinforces that new knowledge and ensures that you remember it.
“Think in the morning. Act in the noon. Eat in the evening. Sleep in the night.” – William Blake
Now there is no point in developing your mind and gaining new knowledge if you don’t you don’t look after your body. This is because to live a true life of purpose we all need to take advantage of all life’s opportunities and more often than not as you develop you’ll discover more and more opportunities to take advantage of. This requires energy not looking after your health will mean you have less energy to tackle life and could even cause you depression as you’re not fulfilling your expectations.
Below are three ways in which you can increase your health and start to take advantage of all your new opportunities.
Exercise: The most simple way in which you can increase your health is to start exercising, now you don’t need to spend hours in the gym or run a marathon but a few minutes a day can make a huge difference.
Eat and Drink Healthily: “You are what you eat” Is a saying I hear a lot. Most people don’t think about what they eat and drink but this is a fundamental step in creating a healthy lifestyle.
Thinkinking about what you put in your body and what it is doing to you is often overlooked for example Coca Cola:
Taking some time to improve your diet can get you untold health benefits including, more energy, lower blood pressure, healthy heart and stronger immune system.
Sleep: This is vital to good health both physical and mental and helps maintain your quality of life. Many people often work long hours thinking that this will help them become successful. But this can actually be more damaging to yourself and career.
It’s been noted that in you work a 50 hour work week you actually become up to 50% less productive as the lack of sleep and long hours actually makes it harder to concentrate and if you’re regularly working 60 plus hours you might as well give up.
Getting enough sleep helps the body repair itself and helps you retain what you have learnt that day and we know how important it is to retain and compound new knowledge on the road to success.
“The big question about how people behave is whether they’ve got an Inner Scorecard or an Outer Scorecard. It helps if you can be satisfied with an Inner Scorecard.” – Warren Buffett
I’m not suggesting you start going to church and reading the bible but looking after your soul / spirit / inner self or whatever you want to call it does us a huge amount of good.
Below are two ways you can start to do that now.
Pray: Again I’m not suggesting you actually Pray but saying thanks for what you have and showing gratitude does our souls so much good. Being happy with our current state does not have to mean we are complainant it just stops us stressing. Many of us want instant gratification and in life and business the best things comes to those who understand things take time and play the long game like Warren did.
Give back: How good does it feel to give back, give a present to a loved one and to see the younger members of your family enjoy the gifts you gave them? Good right? It’s a fact that most people get more from giving than receiving and this boost the feel good factor and leads to a more positive outlook on life.
You don’t have to wait until you’re making millions either, you can start right now it does not matter about the size or value of what you give, just that you give back. I give back by advising Charities, Non-profit organisations and community groups. This gives me a feel good factor that makes me hungry to achieve more personally so I can give back more.
“Surplus wealth is a sacred trust which its possessor is bound to administer in his lifetime for the good of the community.” – Andrew Carnegie
By following these three steps and investing in yourself you’ll definitely get the most out of your life.