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Warren Buffett Success Tips

7 Highly Effective Habits of Warren Buffett

We can all stand to learn a thing or two (or 10) from one of the richest men in the world, investing legend Warren Buffett. The billionaire didn't achieve his success all by luck. It took hard work and some savvy decisions that got him to where he is today. Perhaps you can achieve success in your own life by picking up some of his habits:

1. He Reads a Lot

Warren Buffett says he sits in his office and reads all day. In fact, he spends 80 percent of his work day reading. This is how he gains more knowledge and becomes smarter. However, you need to make sure you're reading critically.

"[Warren Buffett and I] read a lot. I don't know anyone who's wise who doesn't read a lot. But that's not enough: you have to have a temperament to grab ideas and do sensible things. Most people don't grab the right ideas or don't know what to do with them," says Charlie Munger, Buffett's business partner at Berkshire Hathaway, during an annual shareholder's meeting in 2004.

2. He Has an Empty Schedule

When Buffett met Bill Gates for the first time in 1991, he pulled out a datebook to schedule a time to meet or talk in the future. What impressed Gates was how empty the datebook was, Buffett tells Levo League in an interview. "Keep control of your time. You won't keep control of your time unless you can say no — you can't let other people set your agenda in life." It's important to develop the ability to say no and guard your time, because it's your most valuable resource.

3. He's Not Constantly Plugged In

It's commonly known that Buffett does not have a computer in his office and that he doesn't have a smartphone. Instead, he reads paper annual reports in his office and relies on a landline and a basic flip phone. In the world of Facebook and Reddit, we're all constantly plugged in, which can distract us from our tasks. Try to give your brain a break and unplug. It will reap you benefits such as better productivity, sleep, and creativity.

5. He Hangs Out With People Who Are Better Than Him

Buffett says it's good to hang out with people who are better than you in order to "move in the direction of the crowd that you associate with." And it's not just in business — it's important to have the right people in your personal life as well because they influence you in other parts of your life as well. That's why Buffett also says it's important to marry well.

6. He Works in an Environment Where He Can Focus

Buffett didn't move to a flashier city just because he works better in his hometown of Omaha, NE. Although New York is the epicenter of finance, Buffett does not feel any urge to move there. "In some places, it's easy to lose perspective. But I think it's very easy to keep perspective in a place like Omaha," he tells the Associated Press. "It's very easy to think clearly here. You're undisturbed by irrelevant factors and the noise generally of business investments."

7. He Doesn't Make Decisions When He's Tired

We've talked about decision fatigue, and it seems like it's a well-known concept about some of the world's most successful people. In a Berkshire Hathaway's shareholder meeting in 2013, Munger says, "I can't remember an important decision Warren has made when tired." Although he did add that Buffett is "never tired," he cited that when both of them started out, they weren't aware of the psychological evidence of how tiring decision-making was and how you shouldn't make decisions when you're tired.

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