How to Be a Property Investing Success

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How to Be a Property Investing Success

Postby Nick » Thu May 23, 2013 12:30 pm

Some Definitions:


Super-billionaire investors Warren Buffett and Charlie Munger annually deliver quick wit and worldly wisdom about finances and life in general at the famous Berkshire Hathaway Annual Shareholders Meeting in Omaha. It and their report to shareholders is famous as a source of wisdom on investing and life. Leo Babauta went to listen to these titans of the investing world, it struck him how content they are. Not just content because they have all the riches in the world and all their needs met (they do), but because they understand fundamentals of contentment with life.

The key lessons:

Find what turns you on.

Warren said this in response to a question about what advice he’d give to his younger self 50 years ago. He wasn’t talking about sex, but about what you do for a living. And while we’ve all heard “Do what you love”, it’s telling that this is the one thing he’d tell his younger self — it’s that important to happiness. If you do what turns you on, you will be much further along the road to contentment. Don’t worry about what everyone else is doing. Charlie, who is impressively intelligent, said one of the big advantages that Berkshire Hathaway has had is that Warren & Charlie don’t need to worry about what everyone else is doing (in the investment world). Too many people get caught up in watching everyone else, and letting that influence them, that they lose their inner compass. Instead, figure out the guiding principles that matter the most to you, and let go of the need to check on what everyone else is doing, and the need to compare what you’re doing with everyone else.

Know your strengths.

These two guys are very aware of their limitations — they almost never invest in tech companies, for example, because they don’t understand it well — and instead of feeling the need to go into their weak areas, they stay with their strong areas. They know what they’re strong at, and focus on that. Letting go of the need to do everything, and being happy with focusing on less, is an important contentment lesson.

Fewer and higher quality.

Warren & Charlie have a “fewer is better” investment philosophy, where they aren’t nearly as active as your usual Wall Street investor … but they focus on a handful of really strong investments. Warren suggests that investors imagine they have a punchcard with 20 punch holes … once you make 20 investments in your lifestime, your punchcard is used up. If you did this, you’d really make them count.

Know what you like and forget the rest

Warren Buffet, one of the world’s wealthiest men, has a nice but modest house and a surprisingly modest Cadillac (that he drives himself), and eats at his favorite (but pretty ordinary) restaurants … he can afford much more extravagance, but forgoes it because he knows the simple things he likes in life. He could have much, much more, but knows that he doesn’t need it. How many of us do that? Just enjoy the things we like, and not worry about what else we could be enjoying, or what everyone else is enjoying.
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Re: How to Be a Property Investing Success

Postby Jo King » Thu May 23, 2013 6:25 pm

I love the 20 punch holes analogy.
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Re: How to Be a Property Investing Success

Postby Rachel » Thu May 23, 2013 8:11 pm

I love all of their points. But I do think it's very easy to preach the 'do what you love approach' when you're wealthy. Don't get me wrong, I think kids should have that idea instilled in them, but it's a bit of a slap in the face to hear it when you're middle aged with grown up financial commitments and dependents who aren't!

Inspiring and wise words, nevertheless.
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Re: How to Be a Property Investing Success

Postby Nick » Thu May 23, 2013 8:41 pm

Rachel wrote:I do think it's very easy to preach the 'do what you love approach' when you're wealthy.


But I think that's the whole point. We should all drink less alcohol, eat less fatty food, eat breakfast, spend time with our kids ......... but the reasons that we don't do some of these things isn't because we don't believe that we should do them, it's because they are difficult to do (well some aren't actually). The message is "take the hit, do what you love even though you may struggle financially to do that".
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Re: How to Be a Property Investing Success

Postby Rachel » Thu May 23, 2013 9:37 pm

Funny Nick - of the 4 things you mention, I regularly do more than I should of the first 3 and almost as much as I should of the last. Maybe I'm not doing so bad after all!
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Re: How to Be a Property Investing Success

Postby LisaOrme » Fri May 24, 2013 9:47 pm

I love Leo's blog; its one of very few I regularly read.
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Re: How to Be a Property Investing Success

Postby AddieeHenry » Sat May 25, 2013 7:49 am

I think all the points are important for property investing success and ofcourse his blogs are always good. I always read his blogs.
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Re: How to Be a Property Investing Success

Postby emastone » Wed Oct 16, 2013 11:44 am

Investing in property is not a samll risk, bcoz huge capital is invested. For investment, one needs patience as wel las good capital, including knowledge and sence of good opportunity. These type skills can help you successed in property investments. Moreover, yo umust take help from net sources, these days. Besides, it is wise to do surveys and gather info on the present market.
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Re: How to Be a Property Investing Success

Postby mahonejohn » Wed Nov 13, 2013 11:03 am

I am new in land business this lovable data are most functional by this we comprehend what the procedure behind come to be Property Investing Success.
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