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If you reach 65 or 70 and the people you want to love really love you, you are a success. Greetings and welcome. Warren Buffett started his first business at the age of 11, became a millionaire at the age of 30, and is now worth more than $88.6 billion.
Even those who disagree with his decisions still recognize his great influence as the Oracle of Omaha. He once said that if you can’t earn money while you sleep, you will work until you die. The lesson from the quote is to build a source of income that makes money regardless of whether you work that day or not.
If you get sick, take time off, get injured or whatever, your income should still come in. Instead of working your way up, work your way out. Do the work you would do if you were independently wealthy. You know you will. Well, making money while you sleep means you are finding ways to continue generating income even when you are not actively working.
This type of income also refers to passive income, another term that refers to the little effort it takes to earn and keep some money. Examples of passive income include rental properties, profits from stock investments. And royalty payments for intellectual property such as music or movies. However, these examples of passive income are not always easy to create.
Passive income is not a get-rich-quick scheme, and it’s definitely not free money. Generating passive income always involves work. What makes passive income different is that you do the work up front until you sit back and reap the rewards. Keep in mind that passive income is not real.
You get a compounding rate like that which is based on your investment and you get a different group out of that. I mean, you’ll do well. Whether it’s improving investment portfolios or fixing plumbing in rental properties, if you want to be like Warren Buffett, follow the Buffett formula. The key to success is not just making money while you sleep, but going to bed a little smarter every day like a good investment.
And I have seen some very rich people who are also receiving teachers of testimony. And maybe the schools have and everything nobody, nobody likes. You know, the most important thing, apart from the things I talked about is really who you communicate with. You want to connect with people who are better than you. I mean, basically you’re going to go in the direction of the people you’re contacting and you want to find the right heroes,
If you want to emulate someone, you better choose carefully who you want to emulate and when. Obviously you can’t choose your parents, they will have a big influence on you But you get choices as you go down the line and who you like, who you are, who you want to copy. And the most important thing for most people in that decision is their spouse.
It is also important to consider the business partner of the life partner, it is the most important. You want to choose your wife a little better then him or her, hoping and hoping that they don’t find out too soon. S&P 500 consumption tax. That’s the one I’ve been using on that bed for 10 years.
It’s the one that I told my wife’s trustee to put 90% of the money I leave in the S&P 500 is, I don’t know if it’s 80% of the market value, you know, whatever you can. Shopping in this country is over. I think it’s over 20 trillion and you’re buying America. And let me give you an image that will blow your mind.
It was the first quarter of 1940, two days after Pearl Harbor. I spent $114.75, three shares at 100 and 1475. If I put 114 in the S&P 500 at that time and reinvest the dividend, think about the chart of what it could be worth. Today the answer is about $400,000. So if I had taken that 114 dollars as a kid, I would have said shovel anything that made $400,000 today.
One person’s life. That’s America. That’s not me, you know. It’s the big wind. I just read and I probably read 5 to 6 hours a day. Now I don’t read as fast as when I was younger, but I read five newspapers a day. I read a fair number of magazines, I read 10 KS, I read annual reports and many other things too. So I’ve always enjoyed reading.
I like reading autobiography A famous lesson on safety margin you don’t drive a 9900lb lorry on the bridge that says a limit of £10,000 because you can’t check it. If you see something like that, you go a little further down the road and you get one that says a limit of £20,000 and that’s what you cross. The nature of capitalism is that people want to come in and take over your castle.
Very understandable. I mean, if I’m selling TVs or something, there’s going to be 10 other people who can try and sell a better television. If I have a restaurant in Omaha, people will try to copy my menu and give them more parking and take the chef and so on. So capitalism is all about someone coming and trying to take the fort.
Now what you need is a fortress with a sustainable competitive advantage. Some of the castle around Moat and Moat which is one of the best motorcycle in terms of many aspects is to be a low price manufacturer. But sometimes Moat just has a lot of talent. I mean if you’re the heavyweight champion of the world and you beat people up, you’ve got a competitive advantage as long as you can keep it up.
And it’s very useful if you’re the person who happens to be able to do it, if you can produce great movie pictures, you know, I mean you know Steven Spielberg, I mean he’s a bet buddy and it has great economic value. But I would also say that if you asked me to assume that by 2030 less than one hundred percent of the cars on the road in the United States would be driverless, I would take less than 10%. But I may be wrong.
You can go online and bet like I did with the hedge fund but I would take less than 10%. But I may be wrong. There’s no question if you have 50% driverless cars or 75% driverless cars, the volume of auto insurance premiums will be much lower and the sales process in the United States will probably be changed in some way.
That is hard to predict. I fully recommend those students last week, 160 of them from Harvard and South Dakota State. I just tell them to try to get your attention and you know, I mean you didn’t get it the first time, but you know, don’t sleep in life. Find something that you really enjoy doing if you can do it and you can’t, you know, not everyone is lucky enough to have that, but it should be your goal to make $10.
