Warren Buffett, the legendary “Oracle of Omaha,” has built his reputation on more than shrewd investing. At 94, his wisdom extends beyond Wall Street, offering timeless principles for success in every aspect of life. His ten laws for success, which I have distilled from decades of studying his writings and speeches, give insight and provide a blueprint for achieving lasting fulfillment and prosperity in personal and professional endeavors. Let’s look at each one.
1. Invest in Yourself Above All Else
“The best investment you can make is in your own abilities. Anything you invest in yourself, you get back tenfold.” – Warren Buffett.
Buffett’s first law emphasizes continuous self-improvement as the foundation of all success. He attributes much of his achievement to his voracious reading habit, spending hours daily absorbing knowledge from books, newspapers, and annual reports.
This dedication to learning has compounded over decades, creating an intellectual advantage that no market price fluctuation can diminish. The principle applies beyond financial literacy to any skill development, formal education, or personal growth initiative. Unlike external investments that can lose value, the knowledge and abilities you develop become permanent assets that appreciate throughout your lifetime.
2. Choose Your Circle Wisely – You Become Who You Surround Yourself With
“It’s better to hang out with people who are better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.” – Warren Buffett.
Buffett’s decades-long partnership with Charlie Munger perfectly exemplifies this principle. Their intellectual collaboration has enhanced both men’s thinking and decision-making abilities. Buffett actively seeks relationships with people who challenge his thinking, possess different expertise, and demonstrate high moral character.
This isn’t about networking for personal gain but genuine relationships that foster mutual growth. The people you spend time with influence your habits, perspectives, and aspirations more than you might realize. Choosing mentors and peers who embody the qualities you admire creates a natural environment for personal elevation and success.
3. Live Below Your Means and Build Financial Freedom
“Do not save what is left after spending, but spend what is left after saving.” – Warren Buffett.
Despite his enormous wealth, Buffett maintains remarkably modest living expenses, still residing in the Nebraska home he purchased over six decades ago. This principle isn’t about deprivation but prioritizing long-term security over short-term gratification.
Living below your means creates the foundation for financial independence and reduces stress. It provides the freedom to take calculated risks, pursue opportunities, and weather unexpected challenges. The habit of saving first and spending second builds discipline beyond money management into all areas of life, creating a mindset focused on value creation rather than consumption.
4. Guard Your Reputation Like Your Most Precious Asset
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” – Warren Buffett.
Buffett has built Berkshire Hathaway’s culture on transparency, integrity, and ethical behavior. He understands that trust, once broken, can’t be easily repaired. This law extends beyond business dealings to every interaction and commitment you make.
Your reputation precedes you in job interviews, business negotiations, and personal relationships. It influences who wants to work with you, invest in your ideas, or recommend you for opportunities. Protecting your reputation means being honest about mistakes, keeping your commitments, and respecting others, even when no one is watching.
5. Master the Art of Patience and Long-Term Thinking
“Someone’s sitting in the shade today because someone planted a tree long ago.” – Warren Buffett.
Buffett’s investment philosophy centers on patience and long-term perspective, often holding stocks for decades rather than months. This approach recognizes that meaningful achievements require time to develop and mature.
Whether building a career, developing relationships, or pursuing personal goals, the most valuable outcomes rarely happen quickly. Patience allows you to decide based on long-term potential rather than short-term pressures. It enables you to weather temporary setbacks and focus on your ultimate objectives. This law teaches that sustainable success comes from consistent effort applied over extended periods.
6. Turn Your Failures Into Your Greatest Teachers
“It’s good to learn from your mistakes. It’s better to learn from other people’s mistakes.” – Warren Buffett.
Buffett openly discusses his investment mistakes in his annual shareholder letters, treating failures as valuable learning opportunities rather than sources of shame. He demonstrates intellectual honesty by acknowledging errors and explaining what he learned from them.
This approach transforms setbacks into stepping stones for future success. Failure provides feedback that success often can’t offer, revealing weaknesses in your thinking or approach. The key is maintaining the humility to learn from these experiences rather than making excuses or avoiding similar challenges. Each failure becomes a deposit in your bank of knowledge and wisdom.
7. Create Value for Others and Success Will Follow
“Price is what you pay. Value is what you get.” – Warren Buffett.
Buffett focuses on companies that provide genuine value to their customers and shareholders. This principle suggests that sustainable success comes from serving others’ needs rather than pursuing personal gain. You build a foundation for lasting success by consistently delivering value in your work, relationships, and community involvement.
People want to work with, buy from, and support individuals who genuinely care about their welfare. This approach creates positive relationships and opportunities that self-interested behavior can’t achieve. Value creation becomes a multiplier that enhances every aspect of your personal and professional life.
8. Follow Your Passion and Love What You Do
“There comes a time when you should start doing what you want. Take a job that you love. You will jump out of bed in the morning.” – Warren Buffett.
At 94, Buffett continues working as the Chairman of Berkshire Hathaway because he genuinely enjoys what he does. This enthusiasm has sustained him through decades of challenges and changes in the business world.
Pursuing work aligned with your interests and values doesn’t feel like traditional work. Passion provides the energy needed to excel and persevere through difficult periods. It also attracts opportunities and collaborators who share your enthusiasm. This doesn’t mean avoiding unpleasant tasks, but ensuring your overall direction aligns with what genuinely motivates and fulfills you.
9. Think Independently and Question the Crowd
“Be fearful when others are greedy, and be greedy when others are fearful.” – Warren Buffett.
Buffett’s contrarian investment approach demonstrates the value of independent thinking. He makes decisions based on his analysis rather than following popular opinion or market sentiment. This principle applies beyond investing to career choices, lifestyle decisions, and personal values.
Independent thinking requires the courage to stand apart from the crowd when your analysis leads to different conclusions. It means developing your own criteria for success rather than accepting society’s definitions. This approach often leads to opportunities others overlook because they’re too focused on following conventional wisdom.
10. Stay Humble and Never Stop Learning
“The more you learn, the more you earn”. – Warren Buffett.
Despite his success, Buffett maintains intellectual humility and curiosity. He readily admits when he doesn’t understand something and seeks expert guidance in those areas. This openness to learning keeps him adaptable and prevents the complacency that often accompanies success.
Humility allows you to build stronger relationships, make better decisions, and continue growing. It also makes you more approachable and trustworthy to others. Combining confidence in your abilities with humility about your limitations creates an attractive and practical leadership style.
Conclusion
These ten laws work together as an integrated approach to living and succeeding. They emphasize character over technique, relationships over transactions, and long-term thinking over short-term gains.
The beauty of Buffett’s wisdom lies in its practical application to any situation or goal. Start by choosing one law that resonates most strongly with your current challenges and begin implementing it consistently. Like compound interest, the benefits of these principles grow stronger over time, creating a foundation for lasting success and fulfillment in every area of your life.