Warren Buffett | The 10/10/10 Rule of Success

Everyone’s life is full of choices. Making decisions is not easy, but everyone needs to face it.

A person's success sometimes depends on a decision, and those super tycoons more often face severe decision-making scenarios. Therefore, legendary investors like Warren Buffett use a systematic approach to making decisions when faced with choices.

In the decision-making process, there are several factors that will negatively affect our decision-making results. This includes our past experiences, cognitive biases, and more.

If all of these factors come together in a stressful environment, it is easy to subconsciously make the wrong decision.

The legendary stock god Warren Buffett has a famous 10/10/10 rule that can help us make wise choices with a long-term perspective.

This rule is very simple. You only need to remember these three questions:

It sounds a bit mechanical and monotonous, but rational thinking is like this - let yourself answer these 3 questions seriously. Questions and then making reasonable and wise decisions is a good way to improve yourself.

I apply the 10/10/10 rule when deciding whether to use a credit card:

1. How will I feel about this decision in 10 minutes?

Cool! I don’t want to limit my weekend because of one shopping trip, nor do I want to spend my whole life counting the money in my hands.

2.10 months from now, how will I feel about this decision?

If I had a well-paying job at that time, I would be able to spend my weekends happily. But after 10 months without a job or a mediocre salary, I will worry about how to repay this debt.

3.10 years from now, how will I view this decision?

No matter what I choose, I should have a job at that time. But if I keep earning a mediocre salary in the short term, my credit card debt will snowball and I may regret defaulting on it in a few years.

Therefore, I continued to live a relatively frugal life for a period of time so that I did not have to go into debt. And I am also very fortunate to have saved an extra amount of cash as a buffer during the working winter, in case I lose my job.

Our brains are intuitively wired to favor short-term happiness, but as rational beings, we need to make wise choices for long-term happiness and satisfaction.

As Dr. Stephen Covey said, "Happinesscanbedefinedasthefruitofthedesireandabilitytosacrificewhatwewantnowforwhatwewanteventually."

Buffett's method is more in line with this idea, and the biggest advantage is that it is easy to implement. So the next time you need to make a decision, try taking a long-term view and you'll understand the difference between your options.

Very Little Light, reading an excellent English blog post every day.

Buffett talks about credit card consumption: The interest rate is too high, you should pay off all the credit card debt

In the early morning of May 3rd, Beijing time, the global investment circle is looking forward to the 2020 Buffett shareholders The conference was officially held. Affected by the COVID-19 epidemic, this shareholder meeting was held online for the first time. Warren Buffett, Chairman and CEO of Berkshire Hathaway, and Greg Abel, Vice Chairman of the company's non-insurance business* ** Also attended and answered questions submitted by shareholders.

Some investors asked about the credit card industry. The interest rates charged by credit cards have been getting higher and higher over the years, but the current government interest rates are so low. From this perspective, will credit card companies lower their interest rates in the future? What about their interest?

Buffett said that these will affect the bank stocks purchased by Berkshire Hathaway, including American Express. Of course, this is also a competition for credit card companies because of losses in this area. The possibility will be reduced.

“We at Berkshire are not too interested in these credit cards, but we know that using credit cards can be used as another source of use.” Buffett said, for example, “There is A lady came to me. She had a certain amount of money, not a lot of money. She asked me what should I do with the money? I said to pay back your credit card.

She owes a certain amount. I don’t know how much interest she owes. The bank charges 18%. I don’t know how I can get 18% interest. I don’t have such a high income. If I had any money I would keep any credit card debt I would pay it off right away because the interest rates are so high. Afterwards, she talked about her daughter. She had one thousand or two thousand dollars. What should I do with the one or two thousand dollars? I told her that I asked her to lend you the money. If you are willing to pay an extra 8% interest rate for the bank's credit card debt, why don't you pay this interest to your daughter. ? "

"I encourage everyone, if you have money, reduce your credit card debt, even if it is 12%, you should not pay the credit card company, and pay off the credit card debt completely. Some people want to build their credit and are willing to keep paying interest on their credit cards. "Buffett said.

Greg Abel said: "I have three children, and they are very careful with their credit cards. Many people use many credit cards, especially in the electronic world and online commerce. They all use credit cards to pay, because now you have to use a credit card to make transactions. The risk is increased, but for many people, it's convenient. ”

However, Buffett added: “I will have difficulties. If I borrow money and pay 12% interest, I don’t think this is a good thing. Even Berkshire will not pay so much.” . ”

Warren Buffett lost a huge 50 billion due to the epidemic: but the financial advice he gave his children~is worth listening to

Part.1

Last month 89 The year-old stock god Buffett held a shareholder conference. At the conference, Buffett announced his profit situation in the first half of the year:

A huge loss of nearly US$50 billion!

That’s it! The RMB is about 350 billion!

At the press conference, Buffett was still energetic and energetic. He felt that the economy was fine and would be good in the future. But I was not calm, let alone 350 billion, even if it was removed. Even a fraction of "100 million" or 3,500 yuan will make me feel heartbroken for a long time!

This wave of epidemic affects not only our lives, but also our pocketbooks.

The recent US stock market! It's very magical.

More than two months ago, the U.S. stock market crashed four times in 10 days, each time falling harder than the last.

For example, you have a stock market. 10,000 yuan, because of this circuit breaker, shrunk to 9,000 a few days later, to 8,000 a few days later, and to 7,000 a few days later? In other words, you don’t have to do anything. In one week, the money in the stock account could be lost by 30%. This drop was really unbearable!

I couldn’t help but feel my heart pounding when I saw such a drop, so I hurriedly sorted out the stocks in my hands to sell them. Just sell.

However, even though the epidemic in the United States has not completely improved, the unemployment rate is heading towards 25%, and riots have continued throughout this period, the stock market has been soaring.

Every time I watch the stock market surge, I feel a little regretful. Why am I so impatient and didn’t buy stocks at low prices before?

The reality is really cruel. I often buy what I want. After buying stocks, stocks will fall, and after selling stocks, stocks will rise. It's very magical.

So my friend told me, "When I buy stocks from now on, I will just follow you." If you do the opposite, you will definitely make money! ”

I am very depressed.

During this period, I locked myself in the room and reflected on the lessons of failure, which is “not enough financial intelligence”. If I cultivate financial intelligence as a child, If I had invested in stocks, houses, Bitcoin, etc. earlier, I might have made the first pot of gold in my life!

So I decided not to let my tragedy happen again to my son, so I thought. Give Hanhan some early financial enlightenment

Part.2

When it comes to financial enlightenment, the best cartoon I have ever seen is probably the one made by Warren Buffett, "Secret Millionaires Club". , the Chinese name is "Buffett's Mystery Club"

Buffett integrated his more than 80 years of successful experience into this cartoon to teach children how to exercise their financial intelligence.

In the animation, Mr. Buffett incarnates as the director of the mysterious club and discusses how to invest and manage money with three children who have ideas and different personalities. The content covers the knowledge involved in various economic markets. As a financial enlightenment animation, it is worth collecting by parents.

"SecretMillionaires Club" has been broadcast for 2 seasons, with 52 episodes. Each episode is about 5 minutes. Each episode is a knowledge point about finance and business, suitable for children aged 4 to 15 years old. Watch.

1

Problem-oriented

I used to see books on finance and business that contained piles of words explaining great principles. For children, To be honest, it is difficult to understand, which is why I was very tempted when I first saw Buffett.

In anime, each episode will be introduced around a specific financial problem: What problem happened? Is there any solution? What did you learn?

Introduce Mr. Buffett’s financial management philosophy to children through this specific case.

For example, the first episode "Soda is also afraid of deep alleys".

1. Question

Lina set up a stall to sell soda, hoping to make some money to pay for the class’s travel expenses. But what's troubling is that no one buys it at all. What's even more troubling is that she has to make enough money within 24 hours. What to do?

This is to ask a question. This question is actually the most basic question that anyone who wants to do business will encounter.

2. Discussion of the problem

The characters in the play started a discussion, and this discussion was based on a form of mind mapping, focusing on the keyword "retail". Listed all the elements related to retail:

After analyzing all the elements one by one, Lina finally found the key to the problem. The retail business must choose a good location, and her classmate’s stall design It's in a very remote corner, so no one cares about it.

3. Summary of the problem

After solving the problem, Mr. Buffett made a final summary based on the problem himself.

"Just as the retail industry needs a good location to attract customers, you must also think about the location. When you are in class, you must also choose a good seat. The closer you are to the teacher, the clearer you can hear. You will be more focused and your grades will get better and better.”

So, you can see that this knowledge point of “site selection” is clearly introduced in three steps. There are scenes brought in, discussions and analysis by children, and Buffett’s summary. With the story scenes, it is especially easy for children to understand the principles of location selection in animations.

2

Talking about various financial skills

I have watched the first season, and each episode lists a financial skill, one* **There are 26. Each episode can also be summarized with a keyword.

1

Lemons to Lemonade (Soda is also afraid of deep alleys)

Keywords: location (location)

This episode mainly talks about selling things When choosing a store, you must first pay attention to location selection. Only by finding a good location can you attract customers.

2

CarWashCapers

Keywords: advertising

No matter what product is sold, it must be in front of customers Promote the product to make it stand out. Advertising is to establish a brand image for your company.

3

Walkin'TheDog (knowledge of walking a dog)

Keywords: plan (plan)

This episode is about teaching children Learn to make plans. If you want to start a small business, you must first make a plan and ensure that the plan is feasible.

4

Lawn and Order (Savings and Wealth)

Keywords: save (reserve)

This episode tells children about saving money The importance is because your children have saved a lot of New Year's money during the New Year. If you read this book to them, they will know how to deal with the New Year's money.

5

PC'sandUnderstanding (don't do it if you are not familiar with it)

Keywords: Understand (understand)

This episode teaches children what they need Learn to understand the needs of customers so that you can help them make reasonable plans.

6

HouseofCards (Magic Cards)

Keywords: mistakes (mistakes)

This episode is about how to do things in business Avoid making mistakes and invest in people who are reliable. It is wise to do things that are reliable.

7

DebtofaSalean (debt problem)

Keywords: Debt (debt)

This episode introduces the debt problem, telling When a child starts a company, he must reasonably control his debts.

8

The Big Trade-Off (weighing the pros and cons)

Keywords: decisions (weighing the pros and cons)

This episode teaches children how to weigh the pros and cons , make the right choice.

9

TheTroubleWithCreditCards (credit card)

Keywords: responsible (responsibility)

This episode teaches children how to develop a sense of responsibility.

10

GottaDance (Dance Yourself)

Keywords: dreams (dreams)

This episode tells children that they must have A dream, so that life will be full of motivation and hope.

11

ItTakesTwo (cooperation ***win)

Keywords: cooperation (cooperation)

This episode tells the children’s friends The importance is to learn to cooperate with others to win.

12

Special Delivery (high-quality service)

Keywords: service (service)

A good service attitude regards customers as God Make your business stand out.

13

Learn, Baby, Learn (learn well)

Keywords: learn (learn)

This episode is about The importance of learning. To maintain sustained competitiveness, operators must continue to learn and learn more about customers, competitors, and the ever-changing market.

14

Sorry, Ican'tHairYou (learn to listen)

Keywords: listen (listen)

Successful business is inseparable The best way to communicate well is to ask questions and listen well.

15

TheHighCostofHighDemand (demand and price)

Keywords: supplyanddemand (demand and price)

The price of a commodity is determined by It is determined by the demand for the product. The greater the demand, the higher the price you are willing to pay.

16

WhyPayMore (Why is it more expensive)

Keywords: experience (experience)

Shape the brand of the product through pleasant experience , consumers will buy products because of a certain feeling brought by the product.

17

ToughCookies

Keywords: perfect

The principle of successful career is to treat small things every day Things get done.

18

AllFallUp (never be discouraged)

Keywords: insist (persistence)

To succeed in business, you need to continue to Give it a try.

19

AreYouExperienced?

Keywords: experience (experience)

You can find other people’s experience The best class ever.

20

Don'tJustSayNo! (Don't just say no)

Keywords: open-minded (open-minded)

To To do business well, decision-makers must respect the opinions of others.

21

Design for Success (successful design)

Keywords: design (design)

In order to achieve success, every business must Properly packaged, the outward appearance of something will reinforce its inner behavior.

22

Too Good to Be True (too good to be true)

Keywords: reason (reason)

Faced with things that are too good to be true Words must be sane and thoughtful.

23

The Domino Effect

Keywords: effect (consequence)

Operators must first make decisions Consider the consequences.

24

GoingMentalforRental (change your mind)

Keywords: idea (idea)

When doing business, you need to consider more new ideas .

25

TheRealSkinny (not worthy of the name)

Keywords: don'tPrejudge (don’t assume)

Operators before launching new products , do not predict or assume that customers will like a certain product, but should find ways to understand the true needs of customers.

26

CancelMyReputation (precious reputation)

Keywords: reputation (reputation)

This episode teaches children how to pay attention to reputation, The best benefit of a business is a good reputation.

Part.3

A few days ago, Hanhan said he wanted to trade stocks like Buffett, so I created a virtual stock trading account for him.

I didn’t expect that the little guy actually made $184.99 in a few days. It really surprised me!

My son will surpass his father in the future. I really have tears in my eyes. This is all thanks to watching this cartoon!

And I feel that after watching this cartoon, what touched me the most was not only that I learned financial and business skills, but also that I learned many principles of life.

For example, you must learn to listen, learn, learn to cooperate, learn to persist, and more importantly, you must cultivate good reputation. These are the essential elements for a person's success.

I have compiled the viewing link for this cartoon into the background.

If you reply to the animation in the dialog box of my official account, you will get the viewing link.

The cartoon has been translated into Chinese and is suitable for children aged 4 to 15!

ps. Click "Daddy in the United States" below the title, then "Enter the official account", click the keyboard icon to the left of the "Article Directory" at the bottom, and a place where you can type like WeChat chat will appear, where Enter the keyword and a reply will be sent to you.

Animation

There is a sentence in the cartoon that particularly touched me:

“The best investment is to invest in yourself, because if you invest in yourself, you will not be able to invest in yourself. People can take it from you!”

This is also the biggest significance of watching this cartoon with your children!

Han Dad in the United States

Silicon Valley engineer dad shares American education concepts and resources, focusing on English, mathematics, and science enlightenment, which will definitely make your mind open!

Public account ID: hanhanusa

Weibo: @娨 dad in the United States

This ends the introduction of Buffett’s talk about credit cards and the banks in which Buffett invests. , I wonder if you found the information you need?