The Benefits of The Buffett Formula

If you could learn a simple lesson from Warren Buffett and his longtime partner at Berkshire Hathaway, would you?  

Years back I was introduced to Farnam Street as a means to better myself.  Each week I receive weekly newsletters and today I want to share one of my favorites with you.

As far as investors and business acumen go, Buffett and Munger are among the best if not the best.  So when they offer advice, most people tend to listen.

The full article by Farnam Street can be found here, but below are the highlights to what FS is calling The Buffett Formula:

1.  How to Get Smarter.  Both of these guys read, and they read a lot.  Buffett recommends 500 pages/week.  Not achievable you think?  Try it.  Give yourself an hour/day and go from there.  You might find 500/week is a “cakewalk”.

“Go to bed smarter than when you woke up” – Charlie Munger

2.  Continuous Learning.  As you might imagine, if someone is telling you to read 500 pages/week, more than likely “how to apply this learning” will be part of the equation.

We all know how to learn, but ask yourself “how often are you putting yourself in a position to learn?”

3.  Nature vs Nurture.  I am a firm believer everyone is born with God-given talents.  Whether we want to better these talents or learn others, falls solely on us (and those around us in some cases).

But as adults, we have choices and we can choose to strive for greatness or settle with mediocracy.

An old saying shared to me by a mentor, “you are as good as the company you keep” holds a lot of weight.  If you are trying to better yourself, are the people around you helping or hindering that effort?

Hopefully, this introduction to Farnam Street coupled with the words of wisdom from Buffett and Munger can provide value to you.  We have benefitted greatly from learning from others smarter than us.

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