Warren Buffett's 3 Secrets to Success

Warren Buffett is arguably the most renowned investor and billionaire in the world – even if Bill Gates has about 20 times more followers on Twitter than the Oracle of Omaha.

What makes Warren Buffett's rise into the elite category of "billionaire" so intriguing is that he did it entirely through investments. Quite a few of today's billionaires, by comparison, had quite the head start via inheritance or family fortune. Buffett had less than $10,000 to his name in the early 1950s, and now, a little more than six decades later, his net worth sits at more than $70 billion, with his conglomerate Berkshire Hathaway (BRK.A -0.82%) (BRK.B -0.90%) sporting a $352 billion market valuation -- good enough for the fifth-largest market cap among all companies listed on major U.S. exchanges.

If this astronomical rise in Buffett's wealth weren't enough proof of his self-made success, his company has also outperformed the S&P 500 in terms of book value growth about 80% of the time over the last 50 years. It's for this reason why more than 40,000 investors flock to Omaha each and every year to Berkshire's shareholder meeting to hear what Buffett has to say.

Buffett's secrets to success

Although Buffett tends to be direct with his investments, his secrets to success may not be readily apparent. While somewhat arguable, (because let's be real, there are a lot of things Buffett does right that the normal investor struggles with), I believe these are his three biggest secrets to success.

1. He focuses on income generation and reinvestment

First, Warren Buffett has a knack for seeking out stocks that are capable of running on autopilot. As Buffett has previously been quoted, "I try to buy stock in businesses that are so wonderful that an idiot can run them, because sooner or later, one will."

This method of thinking allows Warren Buffett to focus his and his company's investable efforts on solid dividend-paying businesses.

"Why dividends?" you wonder? To begin with, dividends imply the long-term strength of a company's business model. A company wouldn't pay out regular dividends to its shareholders if it didn't have an optimistic long-term outlook. Dividends also help to buoy Berkshire Hathaway's portfolio when the U.S. economy hits its inevitable bumps in the road about once or twice every decade. Most importantly, though, Buffett can funnel the dividend payments received from his holdings and reinvest them either back into more shares of the same company or a brand new investment.

To bring this concept into context, Coca-Cola (KO -0.05%) paid Berkshire Hathaway $88 million in dividends in 1995. This year, Coca-Cola is expected to pay out $528 million to Berkshire based on the 400 million shares it owns. With Coca-Cola's 53-year streak of increasing its payout, Buffett's income generating strategy and focus on buying companies that can run on autopilot is truly "paying dividends."

2. He utilizes dollar-cost averaging to his advantage

Another of Buffett's secrets to success is that he relishes in the idea of being able to dollar-cost average into the companies Berkshire is purchasing.

The general public doesn't exactly hope the companies they buy simply maintain their value or head lower. We'd like to buy a stock and see it ascend to the heavens immediately. But not Buffett. Instead, Buffett believes in edging into the companies he finds most attractive over the course of multiple quarters and even years. Because he believes in an exceptionally long holding period (Buffett's not into "flipping" his holdings unless something very material changes with the underlying business model), Buffett actually welcomes weakness in the companies he owns because it gives him the opportunity to accumulate even more shares.

It's important to recognize that Buffett won't always be right. Even the best investors in the world are going to be wrong from time to time, and his fairly recent investment and sale of Tesco stock at a loss is a good example of this.

But, dollar-cost averaging can turn into lucrative profits over time. Recently, the Oracle of Omaha has been pushing heavily into cloud-computing and data center specialist IBM (IBM 0.06%). Previously a hardware king, IBM is in the midst of a multi-year transition that's taking longer to figure out than Wall Street (or even IBMs management) had predicted. That's bad news for short-term IBM investors, but it's great news for Buffett and his faithful followers as it gives them a chance to accumulate shares in a company with a good potential to turn itself around.

IBM still generated better than $17 billion in operating cash flow over the trailing 12-month period and is valued at only 10 times forward earnings. If its turnaround does indeed take hold within a few years, Buffett, and Berkshire Hathaway's 79.57 million shares of IBM, could be sitting on a veritable gold mine.

3. He innovates rather than follows

Lastly, Buffett may take ideas from books he reads and lectures he attends, but the decision to buy a stock and the investment thesis derived in that decision are entirely his own.

Buffett's innovation can be traced all the way back to his beginnings and the creation of Berkshire Hathaway. Many companies have tried to imitate Buffett's Berkshire Hathaway, but none have the business diversity or capital to outperform the S&P 500 in four out of every five years.

Buffett also tends to think contrary to the crowd and invests in decades-old, or century-old innovations. Some of Buffett's purchases over the last couple of years include Heinz, a company that began producing ketchup in 1907; BNSF, a railroad company operating in an environment where drones and electric vehicles are the next big thing; and Duracell, a commercial battery maker since the 1950s. Only Buffett would be brave enough to build his conglomerate around these brands, but it's tough to argue against the overwhelmingly successful results.

The rest is up to you

So how can you apply these secrets of success to your own investment portfolio? Consider adding a few solid dividend-paying companies to your investment or retirement portfolio as they can provide a good foundation to protect against market volatility all while adding the potential for reinvestment.

Also, consider investing your money in regular intervals to avoid trying to time the market. Buffett is working with billions of dollars, which makes averaging down on his schedule very easy. For the average American the prospect of averaging down on an investment might seem painful. This is where buying stocks at regular intervals could be a smart plan.

Lastly, understand that while Buffett and other market gurus are great idea generators, you are the ultimate innovator of your investment portfolio. You have to be willing to decide what companies or ideas are going to continue to revolutionize and better society. Make the commitment to become informed on a subject or subjects that interest you and use that knowledge to become a great investor.

3 Secrets of Success in Business

Whether you are doing accounting business or any other business, do you know which is top 3 secrets of success in business. If you leave one month from all your work and read the autobiographies of all successful businessmen, you will get the main 3 secrets which I will unplug here only for you because again I want to see you a successful business person.

1st Secret of Success in Business - Great Enthusiasm

When there is the great enthusiasm in your mind to become something in the business world, no one can stop your way. Your enthusiasm for becoming successful business person makes your small home as big show room. When you feel great enthusiasm in your mind, you will get up after failure in business 100 times. All successful business person started their business with their very small capital. Some of them have only two empty hands but they had the capital of great enthusiasm to success in business. They never stole their capital in laziness. Everyday, they checked their notebook's first line.

"I have to become the full of enthusiasm. I have not loss the enthusiasm due to loss in business. Everyday, I have to increase the level of enthusiasm."

When you have great enthusiasm in your work, you will do something new. This new is your first step to success because whole world has bored from old and all are waiting to see something new before death and they are ready to give its any cost. So, you can get this great benefit from this.

When all successful business person adopted this secret in their life, then why do you not adopt in your life?

* Proof of this, you can give to me. When anybody make you negative, never come under his control. So, yourself, I am positive and I will be always positive because I have enthusiasm toward my work.

* Enthusiasm's one meaning is also enjoyment or pleasure. Take the time to learn something new everyday. For example, your room can give following secrete if you have some pleasure to learn something new.

2nd Secret of Success in Business - Hard Labour

For getting success in business, you do not need to do labour in labour chowk or build a building. Here hard labour means to do hard work. Make work as your challenge. Make your commitment to yourself. When you will not do the work as per your promise, you will not become truthful. This will be your great insult. So, you will start hard work and before the time limit, you will get success in your mission. We can take the example of successful business person Mr. Brijmohan Lall Munjal who is the founder of Hero group. He started his business from small cycle shop where he made 60 cycle per day. But through his hard labour, he has reached the ownership of hero group whose net worth is $2.55 billion. More you can read his biography at wikipedia

* When you got the knowledge that hard work is the key of success in business, then why do you not to do hard work?

* Never see day and night for doing hard work. Day and nights time is only for those who are either successful or dead person.

* If you have worked hard in whole day, why do you become lazy in night. When a time of do or die, there is no night no day. Only work hard. OK

3rd Secret of Success in Business - Boundless Faith in the Lord

There is lots of name of God. Some says him or her Alha, some says Ram and Sham, some says Sai but he is one and he is only supporter for your success in business. You will get his support when you call. It is your wrong thinking. God is not far from you. He is not man but he is superman. He is inside you and you is inside him. You need not to call him by dialing his number through your mobile. You just faith in him. Faith, he is in you. Faith which should be boundless. If you make the boundary of morning 5 minute pray and evening 5 minute pray or like Muslim 5 time pray. At that time, you will not find the door of great success in business. Your faith must be all the time. Strong your faith by doing pray of God all the time. Your wire should connect all the time with God.

* Sometime, you take big risk in your business and you cover the risk and get earn. How did it be possible? It is only God's power. Still do you not faith on God.

My 3 Secrets For Success As A Content Creator

As a content creator, I am CONSTANTLY asked what are the secrets to success. Usually, this comes from people who are just starting out in their career journey and are, for the most part, trying to figure out what they need to do to have a level of success that is measurable. Now, oftentimes people really are asking this question because they want to go viral and they want to be profitable. I’m not someone who looks at you sideways if you want either of those things, either; however, “success” is such a relative thing that it really take a strong understanding of your own personal goals to understand how to get there.

I’ve written about being a content creator and an entrepreneur in the past. Honestly, my life has only gotten crazier the more I take on it. Nowadays, I’m juggling multiple campaigns, a whole 9-5, a side hustle, and building out products to sell through email marketing, social media, and good ol’ fashioned word-of-mouth. Still, I’m honored when people ask me how to be “successful” because I often think I’m still figuring it out daily. However, I’m happy to say that each year I feel myself leveling up as a content creator and overall storyteller. So here are my tips on being a successful content creator.

Focus on your unique selling proposition

I know this feels like business jargon, but I love discussing USPs with people. Your unique selling proposition is essentially what differentiates you from the millions of other people who do what you do. The reality is there are a ton of people who do what you do. But only you can do what you do HOW you do it. Lean into your difference and the things that set you apart. For instance, I love to show off my bright, blonde hair. Or the fact I like to dress boldly with color. I also lean into my experience as an editor to make informed decisions in ways other than just other influencer girls. Whatever your unique point is, tap into it and show others through your content what you’re all about.

Focus on starting and not perfecting

A lot of people focus on perfection. I’m a personal victim to this, but TikTok is the prime example that perfectionism can really push you back further and further from the success you could experience. Long story short, get out of your own way. Put the work out there and worry about it later. Now, the caveat to this is that I believe you should still focus on putting out quality work, BUT that doesn’t mean you should rob yourself of putting anything out for the sake of it being perfect. Newsflash: Nothing will ever be perfect, so you might as well start and improve later.

Focus on the C-word

Consistency will make or break your brand. Focus on a day and time to put your content out there, and stick with it! It’s much easier said than done, especially when you already are struggling with content or what to post or when. I like to study when my audience is most active and follow their lead. Feel free to change up your pattern slightly until you get into a good groove, BUT know that posting consistently will be one of the only ways you can spot what’s really working and what’s not. If you’re not consistent, you’re really not maximizing the opportunity for your brand and for you as a content creator.

I repeat: Content creators are consistent!

So those are my tips for success as a content creator. What tips are you leaning into this year?

FYI, my Tom Ford coat is sold out every where but I’ve linked some dupes down below.