This Is How Warren Buffett REALLY Made 85 Billion Dollars


There is so much value in studying the
greats. Especially the relevant ones that are
great today. People like Warren Buffett. Like how on earth did that man amass a
net worth of 85 billion dollars. It’s incredible. It’s an astounding figure and
the story goes all the way back to who he was as a child. Today, I want to
explore with you some of the lessons and things I’ve picked up on from studying
his life and how it’s helped me become a better, wiser investor. Warren Buffett is one of the wealthiest
individuals alive today and while he looks like a really nice old grandpa man,
the reality is that he started his investing career at the age of 11. He had
a very well tuned mathematical mind. He loved to multiply do basic math and he
loved to run numbers on companies. And I think I relate to him because a lot of
what helped make it such an impression on him was he was a paper boy. I was a
paper boy before that. Probably I don’t even know if that exists in the world
today, I doubt it. But you know, growing up, you know, being a paper boy, it just
taught me some basic elements of deliver value and then collect that money and
then I used that money and I invested it. And Warren Buffett by the time the man
really went to college at Columbia, he had already amassed a lot of
experience in doing things like opening pinball machines around town and the
barbers and collecting money that way. And he had experience with taking his
paperboy money and he helped buy a 40-acre farm and leased it out you know
to a farmer and actually made great money on that piece of real estate. And
then he got into berkshire hathaway. Which at the time, was like one of his
worst investments that he turned around into one of his biggest success stories.
So, I mean ultimately, when you look at the life of Warren Buffett, what the man
is doing is he has principles for investing in companies and there’s a
couple of things that I think are worthy of extracting from his life. His book
that he wrote wrote snowball I think does an incredible job helping us in the
world understand who is Warren Buffett, how does he make decisions. And here’s
some of the things for you and I to get. Warren Buffett, what he would do is when
he would work, he was such a frugal man that what he would do is he would take
as much money as he could and instead of consuming it, he would actually invest it.
So, this really simple concept of pay yourself first. For example, in one of my
earlier videos I was showing you that if you make ten units of money, how much of
it are you actually able to set aside for you to invest with? You know, if you
can only save 10% to invest, that’s a start. And it’s definitely better than
nothing. But Warren, he would actually live so
frugally that the majority in time of what he made could actually go towards
his investments. And the man has you know, I simply love his very straightforward
approach to life and the obvious integrity and honesty that he carries.
Because I think those are really desirable qualities and they’ve helped
shape so much of what people get out of looking to him as a mentor and a
business leader. But the man would religiously pay himself, take his money
and invest it. And he would place it in many different companies. He had
different reasons for why he would invest in different companies. There are
certain types of companies he did like certain types that he didn’t like. But
when I really felt a closeness to Warren Buffett was when I was directly
competing with his hedge fund Blackstone during the 2009 ten on eleven recession.
After 2008 hit, we went out and we started buying real estate like crazy.
Thousands of homes. And we had an 18-month head start on Buffett before he
came in. And in the papers he said, “Buy single-family homes below the market and
you’ll win every single time especially if he buy in the hot markets.” And the
markets that I was in Phoenix, in Vegas he was there with me. Except that year
that I bought, I don’t know, 2000 homes. He bought 40,000 homes. And I swore the next
time we have our next recession, I’m going to be there and I’m going to be buying
as big or bigger than Buffett did. Because I know the homes he bought and I
know how much money he’s made on them. So, the man just has a really sound
philosophy of how he does business. In 1990, Warren Buffett actually became a
billionaire for the very first time after a Berkshire Hathaway started and
went public and started actually selling off shares. And you look at going from a
billion to now 84 billion dollar net worth. Basically he’s just
doing his principles over and over again. and I’ve thought for this video, “What can
i condense down? What are the real things that I’ve learned about Warren Buffett
that I see him doing?” Number 1, he saves money and then he invests it and then he
educates and then he invests more and then he educates and he reinvest. And is
basically a rinse and repeat cycle that when you talk with him or you hear
him speak, it’s always going to be how he’s recently educated himself and then
he’s applying the same basic math and then he’s at it again. So, how are you
investing money and what do you expect your money to produce for you? Because
Warren has a tendency to pick companies that are undervalued that with a little
bit of key management switch-up can actually become behemoths and very
successful. So, he’s an asymmetrical investor. This is I think what you and I
need to pull from Warren Buffett is that asymmetry means there’s low downside
there’s massive upside. 401ks and IRAs in the stock market do not have big upside.
Like the S&P 500 averages just shy of 10%. And when you take your ups and downs
out of it, it’s actually significantly less. We as a people are not taught to
invest. We’re not even taught to set money
really aside. What Warren’s doing is he’s following principles of richest man in
Babylon. He is living frugally, he’s saving his money, he’s investing it and
when he looks for a company, he’s not looking for a 3 or 4 percent return.
He’s looking for a company that can double triple quadruple and really has a
history of doing something massive. How does that impact your strategy on
investment? For me, it most certainly strengthens my approach to investing in
real estate because I found something that works and I would just do it over
and over and over again. In fact, I buy a house just about every single day but
I’m never using my money. I’m never using my my credit. But I am using my team of
200 experienced individuals and that’s also what Buffett does. He find
something that works and then he multiplies it and stays at it and does
it over again and again and again over the long period of time. So, I wanted to
make this video today in hopes it’ll be a little bit of helpful enlightening on
who is Warren Buffett. There is practical application in what the man’s doing. Pay
yourself first, invest the difference, continue educating and then make sure
you’re making investments that have the the real moonshot. The ability to get you
where you really want to go in life. If you’re not sure where to start what that
could look like, you could do the same kind of a real estate that me and Warren
Buffett were doing back in ’08 is the same kind of real estate that he’s still
up to and that I’m still up to. We were buying the best real estate in the
country and we still are today. It’s all documented here in this book.
The Straight Path To Real Estate Wealth. And this is a free copy from me to you
it’s a gift so you can get your hands on the way to do real estate in the most
intelligent way possible and create a little game plan for yourself to make a
few million dollars on the side during your working career. Do that, it sets you
up for a different financial future. Thanks so much for watching. Make sure
that you subscribe and we’ll see you on tomorrow’s video.

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