Warren Buffett’s simple rule can make you more productive, wealthy, and happy.
Warren Buffett’s enormous wealth is only matched by his incredibly valuable wisdom. So when the Oracle of Omaha says he has a simple rule to improve your life financially and personally, you should pay attention.
In a lecture to USC Business School students, Warren Buffett’s right-hand man, Charlie Munger, revealed a strategy that Buffett has used time and again to build success.
Warren Buffet preaches that he could:
“Improve your ultimate financial welfare by giving you a ticket with only 20 slots in it so that you had 20 punches — representing all the investments that you got to make in a lifetime.”
Once you punched through the card, you couldn’t make any more investments at all.
Buffett said that “Under those rules, you’d really think carefully about what you did and you’d be forced to load up on what you’d really thought about. So you’d do so much better.”
In a nutshell: We’re tempted to take advantage of every opportunity possible (especially when it comes to money), but our opportunities are actually incredibly finite. As I’ll explain, by narrowing down these opportunities beforehand, you can focus on the successful ones with your limited resources, instead of jumping at every opportunity that presents itself.
This ‘20-Slot-Rule’ is a concept that doesn’t just speak to making smart investments, however. It also applies to all areas of life and business that require our decisions to be well informed and incredibly selective.
Without further ado, here are some simple tips for following Buffett’s ‘20-Slot Rule’ to improve your life: