Warren Buffett
Do You Know the Secret to Warren Buffet's Success?
There is no doubt about it that Warren Buffett has made it big! DO you know his secret? I've been reading up on him lately and discovered the secret to setting goals the Warren Buffett way.
The 5/25 Rule
Warren Buffett explains how to set goals like this.
- Write out your 25 top goals.
- Narrow the list down to the top 5
- Ignore the rest.
The remaining 20 goals only distract from the top 5 until we achieve them. After that, we start the list again. Those other 20 goals may change or not. Some of them may move to the top 5 while others are no longer valid.
Pareto Principle
Warren Buffett's method for setting goals is an application of the Pareto principle, which states that 20% of our actions accomplishes 80% of our goals or tasks.
I'm working on my list now, and I'll amend or rewrite my goals before my birthday.
Thanks for reading, commenting, and liking.
Recent Comments
80
Goal setting and following through on your most important goals is certainly important - even critically important - to success.
I really did not hear about goal setting until I was in college - now it is taught everywhere.
I have many books about goal setting - it has become a science in self-motivation. I have particularly enjoyed S.J. Scott's series of books on goals and avoiding procrastination.
Thanks for your insightful article!
Dave.
Thanks DMahen. I appreciate you giving me Warren Buffets' advice about goals. I will redo my goals as well. I have long believed in the necessity of setting worthwhile goals.
If I can find it I will send you a cassette tape of Earl Nightingale's strangest secret. Or better still go online and buy a copy of The strangest secret at Amazon books. You will get it faster than waiting for me to send you a copy.
Some other great resources as to goal setting are Napoleon Hill's book Think and grow rich and Robert Kiyosaki's book Rich Dad, Poor Dad. Some think these books are only about making money. They have not read the books or may have read them and missed the greater teachings of these world-famous, thoughtful authors.
Thanks again for your article.
Pastor Derry
I am happy to have been doing things generally in the right way. I set a goal, a really big one, then work backward to come up with the steps to achieve my goal. A masterplan of sorts. I have never heard of the Pareto Plan. hence the reason I am not as rich as WB. Thank you for sharing.
Ken
I agree with you David, I've only got 5 goals outlined for the 1st quarter in 2020 as per my blog "What are your 2020 goals" so guess I'm on the right track according to WB - hadn't known about the Pareto Principle so thanks for sharing :-D
Best of luck with writing your goals. Jules
See more comments
I think Warren was practicing the 5/25 rule at a very young age. He was buying stock with money saved from his paper route when he was 11 years old. This aptitude for investing was acquired by spending his time in his father's small brokerage in Omaha, Nebraska. The rest as they say is history.
Thanks for reading and commenting! All the best!