Name: 7 Secrets to Investing Like Warren Buffett
Rating: 4.7 (364 reviews)
Author: Mary Buffett with Sean Seah

7 Secrets to Investing Like Warren Buffett summary

Mary Buffett with Sean Seah

Buffett’s techniques of Value Investing and his proven strategies for long-term success

4.7 (364 ratings)

24 mins

What is 7 Secrets to Investing Like Warren Buffett about?

7 Secrets to Investing Like Warren Buffett (2019) offers a handy breakdown of the most fundamental secrets of investing like a pro. Many of the tips it provides delve into the basic principles of value investing. This approach has long been Warren Buffett’s go-to methodology for determining which businesses to invest in.

Table of Contents

What’s in it for me? Learn how to invest like the very best.

Warren Buffett is one of those few investors who’ve become household names. He earned that status by making his first investments in the 1950s and growing early successes into a portfolio worth billions upon billions of dollars. Buffett is one of the world’s wealthiest people, so it’s no wonder that people often ask him for advice and hints. After all, who wouldn’t want to know the secrets to the sort of decades-long success he’s achieved?

One person who’s had the chance to study and understand Buffett’s methodology – or, as it’s become known, Buffetology – is his former daughter-in-law Mary Buffett. Together with Sean Seah, another passionate Buffettologist, she lays down the seven most important secrets of creating your own long-lasting, successful stock portfolio.

That’s why you’ll get seven blinks. Seven secrets, seven blinks. Makes sense, right?

In these blinks, you’ll learn

why making new habits is the first step to success;
how to invest within your circle of competency; and
why undervalued companies make for great opportunities.

Good habits, such as saving money and avoiding debt, are key to creating wealth.

Chances are, if you’re looking for tips on generating wealth, you’re probably not expecting a lesson on making good habits. But that’s exactly what the first secret to investing like Warren Buffett is all about.

You need money to invest money. So before we even get into picking the right stocks, we need to talk about setting aside the funds you’re going to use. Even though saving doesn’t come naturally to all of us, it’s one of the most important secrets of success.

This is why you need to make a habit of it; something you’ll practice steadily and consistently.

But where do you start? Well, step one is to put away 10 percent of your earnings. Transfer this money into a separate savings account, or put it somewhere else that’s out of reach. You don’t want the temptation of dipping into this pot. Once you’ve got the savings account set up, start to build on this money. Add to it regularly, with each and every paycheck.

If 10 percent sounds a little steep right now, here’s another idea: incremental savings. This week, put away one dollar. Next week, two dollars. Week three, three dollars, and so on. It may not feel like much to start with, but if you keep it up, in a year’s time you’ll be stashing away $52 a week.

Starting out small and gradually increasing your commitment is a tried and true way of forming a positive habit. It’s all about keeping things manageable and consistent. Many people jump out of the gate with goals that are too ambitious, only to stumble and fall a short while later. That can be very discouraging – a surefire way to kill off a good habit.

But what if you’re being steady and methodical? What if you’re seeing that savings pot grow and grow? How much should you aim to save up? A good rule of thumb is to create a solid emergency fund, enough to cover your costs for some time in case your source of income is cut off.

And then, on top of that, it makes sense to arrange an insurance policy, such as an accident and disability plan. The authors recommend a plan that’ll cover ten years of regular income, just in case.

Spending money is easy. Anyone can do it. Wealthy people save money, put it aside, and grow it.

There’s a reason why people who win the lottery and become overnight millionaires squander their fortune. They haven’t developed the kind of habits that can keep them wealthy.

Key ideas in 7 Secrets to Investing Like Warren Buffett

About the Author

Mary Buffett is the coauthor of the best-selling Buffettology series, books that have helped shed light on the winning business practices of Warren Buffett. She’s also a sought-after speaker and business consultant. Her books include The Tao of Warren Buffett and Warren Buffett’s Management Secrets.

Sean Seah is an author and investor who’s specialized in the Asian markets. He’s also lectured at colleges and universities. His other books include Gone Fishing with Buffett.