Warren Buffett is arguably the greatest investor of our generation, Buffett is also a champion in leadership and personal development, sharing advice to improve our lives.
One piece of advice is a rule Warren Buffett calls the key to his success — a rule founded on a key principle of finance which he consistently follows.
The rule states: Go to bed a little smarter each day. Sounds simple right, That’s the Buffett Formula. it operates on the power of compounding interest. Within a few years, it starts to yield results. “That’s how knowledge builds up. Like compound interest,” Warren Buffett once said.
Putting the Buffett formula into action.
Through out your lifetime, the Buffett Formula should give you an advantage, as it gave Buffett. And the best way to launch it into daily practice is to do what Buffett does every day: read (don’t just read, read and study materials that adds value to you and increases your knowledge).
Buffet’s infamous reading habit is what he attributes as the foundational tool to improve knowledge. He is a voracious reader who spends 80 percent of his own day reading, and he suggests that anyone hoping to achieve similar success should read 500 pages per day.
That also means making the time to read. “I read and think,” Buffett once said. “So I do more reading and thinking, and make less impulse decisions than most people in business. I do it because I like this kind of life.