💰 How to invest like Warren Buffett

🧠 How To Think Like A Billionaire

Millionaires are old news.

The new status quo? Billionaires. 

Over 70% of billionaires are self-made. Meaning they started with nothing and became one of the richest people in the world.

Was it luck?

Was it simply a great idea paired with a lot of hard work?

I’ll let you in on a little secret…

It’s how they think about business.

It’s not that billionaires see opportunity where millionaires don’t.

Millionaires simply take the opportunities that billionaires will not.

Today, we’ll talk about how 3 billionaires like Warren Buffett and Steve Schwarzman think about business and what we can learn from them.

Here’s what we got for ya:

  • ⚖️ The 4 Types Of Leverage

  • 🚫 The Cost Of Opportunity

  • 💰You Don’t Make It, You Own It

Read Time: 4 min 9 sec

⚖️ The 4 Types Of Leverage

There are 4 ways businesses use leverage to make money in less time:

  1. Investing

  2. Digital products/ software

  3. Labor

  4. Media

Not every billionaire has all 4, but all of them have at least one: The ability to leverage high-output labor.

To build a billion-dollar business, you must have a billion-dollar team.

“One of the most important lessons I’ve learned in business is never to compromise on people. Pete and I always resolved to hire Tens…Tens always make it rain.” - Steve Schwarzman

Don’t have a specific skill? Hire the best in the world.

Don’t know how to invest? Hire the best finance manager money can buy.

However, you need a business that top talent wants to work for and one that can pay them.

This means you have to ask yourself:

  • Will this business attract top talent?

  • Do I have the skills to manage a team like this?

  • Will I be able to pay them enough?

A few resources on this:

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🚫 The Cost Of Opportunity

Most millionaires think in years. Billionaires think in decades.

To be a billionaire, you have to think about decisions as they impact you 10-30 years from now.

In the Netflix documentary “Inside Bill's Brain”, Bill Gates gives 5 questions he asks himself before making a decision.

His most important question?

“Will time work for or against me?”

Invest in things that will be valuable 20 years from now. Make decisions that align with your goal, not distract you from it.

There are a million ways to make money. But only a few will get you to a billion.

You have to turn down short-term opportunities that could make you $100M for the opportunity that WILL make you a billion.

This means two things:

  1. You must choose the right opportunity.

  2. Once you find an opportunity, it needs your undivided attention.

"People think focus means saying yes to the thing you've got to focus on. But that's not what it means at all. It means saying no to the hundred other good ideas that there are. You have to pick carefully" - Steve Jobs

There is a cost to everything. Where you spend your time, what opportunities you take, and even what you think about.

Stay aware of every opportunity cost as it impacts you and your business decades from today.

A few resources on this:

💰You Don’t Make It, You Own It

Becoming a billionaire does not mean you make a billion as take-home profit.

You become a billionaire by owning things that are worth a billion.

And this means building assets with a positive relationship to time.

This includes:

#1 - Your business

#2 - Assets like real estate and investments

#3 - You and your brand

"Ultimately, there's one investment that supersedes all others: Invest in yourself" - Warren Buffett

There are two points here:

#1 - You are your biggest asset

Your business can only grow as much as you do. If you don’t know how to lead a sales team, you won’t make a lot of sales.

If you don’t know how to communicate, it will be harder for your business to get investors.

This is why 67% of CEOs who own a $1M+ business spend $7,000 (average) on courses and masterminds every year.

Never be afraid to invest in yourself.

#2 - Your brand is your second biggest asset

I doubt I have to tell you how important a personal brand is.

But just in case you’re not sold, here’s what happened when 3 major personal brands launched a business:

  • Mr. Beast Launched a Chocolate Brand. It’s now worth $50M.

  • Conor McGregor Launched a whiskey brand. It’s now worth $600M.

  • The Rock Launched a Tequila Brand. It’s now worth $3.5B

PS - Building a brand is one of those decisions that WILL matter 30 years from now.

A few resources on this:

That’s it for today!

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