The “20-slot”: Warren Buffett’s Rule for Success

The “20-slot”: Warren Buffett’s Rule for Success Have you ever dreamed of becoming a successful businessman? To reap a great fortune from your personal effort only? Or even to become successful in the field in which you currently work? Well, you are in the right place, in this article you will find the answer to all these questions and more. Every now and then, according to Charlie Munger the Vice President of Berkshire Hathaway, the legendary businessman Warren Buffett likes to give advices to illustrate the core investment — and life — principles that helped him achieve success. Buffett begins by telling MBA students,  “I could improve your ultimate financial welfare by giving you a ticket with only 20 slots in it, so that you had 20 punches — representing all the investments that you got to make in a lifetime. And once you’d punch through the card, you couldn’t make any more investments at all. Under these rules, you’d really have to think carefully about what you did, and you’d be forced to load up on what you really think about. So you’d do much better.” Munger also expressed that this concept always seemed to be a no-brainer to him and Buffett. “To me, it’s obvious that the winner has to bet very selectively,” he told the students. “It’s been obvious to me since very early in life. I don’t know why it’s not obvious to many other people.” In another speech he made in 1988 at the University of Florida, Buffett spotlight on important idea, which is that everyone should not assume that they will have 20 great ideas in their lives. He said they can bet on 20 ideas, but only "three or five or seven" would make them rich. `` But what you can’t do is get rich by trying one new idea every day It is not just about being wealthy Buffett’s 20-slot rule can be applied to all aspects of life, and not just money, because what it really drives at is the importance of focus. And the billionaire has hinted at this advice several times in the past. In 2007, a documentary on HBO were published under the title "Becoming Warren Buffett"  in which the Berkshire Hathaway CEO and his longtime friend Bill Gates are asked to each write down what they felt most attributed to their success. Surely enough, they both wrote the same word on their respective papers: Focus. We live in a world of constant distractions — of half-finished projects, ideas or commitments. Think about all the times you developed an interest in one pursuit, dabbled in it for a bit, and then, weeks later, chased after a new pursuit. But your odds of success can improve drastically when you direct all your energy and attention to fewer tasks. And the key to doing that, according to Buffett, is to treat life as if you have a “20-slot” punch card. So don’t waste your next slot. Spend time thinking about what pursuits you’re truly passionate about. Ask yourself: How important is it to me? Does it motivate me? Will I benefit from it later in life? It might be learning how to code or developing a healthier diet. Once you decide on something, don’t stop focusing on it until you’ve truly mastered it. You’ll soon discover that it’s better to be a specialist, rather than a generalist.   You might also be interested in:

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