I recently read The One Thing by Gary Keller. It’s an insightful book that can help you get the most out of your life. The message of the book is simple: you should focus on just one thing that gives you the most impact. Not a few things, but just one thing. So it goes further than the Pareto principle that says you should focus on a few important things. That’s why the book calls its principle extreme Pareto.
I recently read Warren Buffett’s Ground Rules. It’s a book about Warren Buffett’s investing principles in his partnership years (1956 – 1970), the years before Berkshire Hathaway. The idea of the book is that he managed a relatively small sum back then so the principles are more applicable to individual investors. The book is an investing book, but also I learned life lessons from it. Here are eight timeless life lessons from Warren Buffett that can help you get ahead in life:
A while back, I wrote about the mindset for overcoming a fear of failure. The mindset says that the regret of failing is less than the regret of not trying. Now I’d like to introduce you to a mindset that extends that. I call the mindset the experiment mindset.
In investing, there is something called rebalancing your portfolio. A portfolio has different asset classes in it (such as stocks, bonds, and cash), and there is a particular allocation that best serves your financial goals. Over time, however, your portfolio might go out of balance. One asset class might outweigh the others because its price increases rapidly. The allocation will then deviate from its ideal.
Do you want to live your life to the fullest? If you do, then there is a big obstacle that you need to overcome. That obstacle is fear, and among the different kinds of fear, a major one is a fear of failure. Imagine putting a lot of effort into something but it doesn’t work. What you get in return is nowhere near your expectations. It wouldn’t feel good, would it?