I recently came across Warren Buffett’s “10 Ways to Get Rich” again. And I want to share them with you as “10 Rules to Success,” because success comes before wealth. For those of you who don’t know Mr. Buffett, he is the most successful investor of our time and the definition of a self-made man. Worth over $58.5 billon at age 83, Warren Buffett is on the short list as one of the most influential people every year.
Today’s posting on Buffett’s first of “10 Ways” is simple, but one of the most challenging accomplishments for the new business owner:
- Reinvest Your Profits. This makes sense not only in the stock market, but in a small business as well. Entrepreneurs who bleed all the profits out of a business find that they may struggle to grow the business into something larger and more valuable.
How to apply (my advice not Warren Buffet’s)? Those who have grown their investment portfolio have learned the value of systematically putting aside a percentage of income that is put into a retirement portfolio. This system applies also to the small business owner who would be wise to put aside a percentage of all income/profit for the purpose of expanding their business. This expansion can be as simple as adding a new computer system that allows you to process orders faster or adding another location. The principle is to always be thinking growth by setting aside money to bring growth to reality.
Tomorrow…More of Warren Buffett’s “10 Ways to Get Rich.”