Several years ago Susie Buffett, Warren Buffett’s first wife was being interviewed and was asked: “How do you think Warren would like to be remembered?” Without hesitation she responded that he would like to be remembered as a teacher.
This Saturday, February 27th, Berkshire Hathaway releases its 2020 Annual Report. The best part of this report is the Chairman’s Letter which is written by Warren.
If you have never read any of Warren’s Chairman’s letters I would strongly recommend you to start this weekend.
Warren has been an excellent teacher let alone one of my biggest heroes.
It is one thing to get an education but the key is to learn. One of the best ways to learn is to do things yourself. The best substitute of not doing it yourself is to learn from someone who has done it and observe what they have learned.
Warren has allowed myself and all of us to learn from him for the past 55 years and longer through his letters starting from his first partnership.
There are so many things I have learned from Warren over the years but there are a couple of key thoughts that stand out.
First, Warren focused early on saving and investing for the long term so that he could accumulate enough funds to do anything he wanted.
The key is to save as much money as early as you can. An analogy Warren compared this to, is to make the biggest snowball you can and stand at the tallest hill you can find and let it roll down the hill becoming the largest snowball ever.
Second, one of the most important things he said is to take what he has told us and apply it to your situation as opposed to copying him.
People are quick to tell you what Warren is thinking and why he did what he did. The only person who can do that is Warren himself. I personally have had the most success applying what he said.
If you don’t have time to read his letter, no fear, I will be sending out a brief summary.
Stay tuned as I will try and share more of “What I have learned from Warren.”
Thank you and please give us a call if you have any questions or if we can help in any way.
"How will you replace your current income in retirement?" - Jim Seyers