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Many people are curious about how to make it rich. They do not know how, for it is clear that most of us are not billionaires. To learn how, we must turn to the wisdom of the wise few who made it to the top. There are many points to keep in mind on the road to success. They should not be hard for the careful financial practitioner to remember. Photo: capify.com


Buffett's Law

Warren Buffett summarized his investing career quite well with an interesting philosophy. Loving what others avoid, avoiding what others love. This practically means that most people are wrong. Why? They pursue what their friends pursue in every matter, including investing. When the flock runs to Apple stock, the goose follows with them. Buffett indicates that the billionaire is the ugly duckling that stays by the pond munching seaweed when the others run straight into the fox's mouth. Or the goose that runs from the pond when the fox decides to stay and munch ugly ducklings.

 

How can you discern when to buy out another company? Buy at the opposite times to when everyone else is buying. Small business bookkeeping should teach you that if you buy something that is universally popular, it will also have a higher expense than something unpopular will. You will mortgage yourself up to the hilt trying to pay for it.

 

Humility is Better Than Debt

If you really want to hit it big, you have to start small. Go sniffing for something that your peers are afraid to look at. The Harvard Business Review notes how many business students totally avoid looking to buy a small business because they do not like the risk and uncertainty. This is why most of the Harvard graduates never become billionaires. They become highly indebted millionaires who send our nation into more debt.

 

The best deals will be found in risky, bankrupt, auction, old, minority, foreign, strange, hard, stupid, long term, painful, dangerous, and smelly businesses. You can usually snatch these up for pennies on the dollar during a recession. Wise hedge fund managers do this kind of thing for their breakfast. It will be hardest to buy businesses that are safe, capitalized, trading, new, white, Western, normal, easy, smart, short-term, pleasurable, safe, and sweet.

 

Buffett's law can be memorized simpler. Think in terms of buy low and sell high. You should buy when others are selling crazily out of emotion. You should sell when others are buying crazily out of emotion. The market gurus have mastered this strange art.

 

Now, some might have objections. "This is all well and good for you, but I have found success doing my own thing." What their own thing usually is? It is buying high and selling high. This method, though often preached at home and school, is the high road to a life of slavery and debt. Your income will be high, for you are selling well. Your expenses, however, will also be high, for you are buying poorly. You are getting the luxury car when the import beater would do. You are demanding the cracker box mansion when the apartment would be fine.

 

The same thinking applies for buying another business. Ignore the so-called experts of the financial industry. Take the narrow road that the elite have taken for thousands of years. You will not be disappointed. You will suffer more, like the football team owner who still uses a flip phone. Your wallet will not.

 

Conclusion

If someone is trying to buy your business from you, you should decide what to think about it. If you do not want them to, make it look trashy. Most people are emotional. They will only buy something that looks beautiful, no matter what the cost. When the investors are done ignoring your business, it will still be yours. If you want to sell the business, make it beautiful. Sell high. Make the storefront shine. Sell the marketing universals to the masses until every big name in finance is slobbering to put cash in your corporation. Make sure you do not refuse to be brave.

Lee Flynn is from the Wasatch Mountains near Salt Lake City, UT. After Lee spent years preparing himself, his home and his family, he decided he had to do more. In his free time, Lee helps educate those who want to do the same. Through small local workshops and articles, Lee trains and teaches others on home preparation, food storage techniques, wilderness survival and self reliance. After obtaining a bachelors degree from the University of Utah, Lee moved to the Salt Lake Valley where he now lives with his wife and daughter.

 

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