Yahoo Finance 7 Financial Lessons From Buffett ... Jimmy Buffett
Chances are that anyone from veterans of the financial world to a novice who's simply done a Google search for a stock tip has come across insight from Warren Buffett, one of the world's most successful investors.
Few people, however, have sought out advice on how to diversify their portfolios from another Buffett ... Jimmy, that is.
While you won't confuse the singer who has fans called "Parrotheads" with a Wall Street banker or hedge fund manager, Jimmy Buffett has some great wisdom in his songs about money and success. That said, let's take a look at some notable quotes and lyrics from the ocean-going singer, and what financial know-how and leadership advice might be hidden behind the beach house in our minds.
On saving: "I've got quarters in my loafers tryin' to fight inflation when it only used to take a cent. Sometimes I wish I was back in my crash-pad days, 'fore I knew what cash flow meant."
Save early, save often is the message here. For many, cash flow greases the wheels of life, so make sure you're not living above your means and that you start saving early and strategically.
On goals. "I have never cared about setting world records, or filling my boat with fish, or, for that matter, even catching fish. I go for the experience of spending six hours in the arms of the ocean, never thinking of a single thing except chasing fish."
Here, Buffett is reminding us that it's not always about the destination. Many times, embracing the process of your endeavors can yield much more in satisfaction and success than constantly looking for the finish line. (And sometimes there isn't a finish line.) Those that have been successful in business, sports, entertainment and other areas of life have often talked about getting lost in their work and in the process, and not so much about achieving a said goal. While it's critical to have goals, they shouldn't be the only reason you do something. You'll likely find far greater success when you enjoy your work.
On decisiveness. "People who think too much before they act don't act too much."
This one is pretty straightforward: Don't overthink decisions. To get ahead, you need to believe in yourself, take chances every now and again, and remember that not every choice you make is going to come out perfectly. Make it a point to regularly step out of your comfort zone and be OK with being uncomfortable at times. The more you push yourself, the more you will experience your full potential.
On failure. "Oh, yesterdays are over my shoulder, so I can't look back for too long. There's just too much to see waiting in front of me, and I know that I just can't go wrong."
Embrace failure; it fosters success. Warren Buffett (no relation to Jimmy, by the way) once said that one of his biggest failures was buying Berkshire Hathaway (ticker: BRK.A, BRK.B). Why? This move that many think was one of the greatest of his career actually cost him in not only money, but time as well, because he bought an underperforming mill instead of something more successful. (He instead would have invested that money in an even better-performing stock, namely insurance.) Warren Buffett says one thing he learned was, "If you get into a lousy business, get out of it."
On finding success. "Searching is half the fun; life is much more manageable when thought of as a scavenger hunt as opposed to a surprise party."
You're not going to wake up one day and have an email sitting in your inbox telling you that all of your cares are gone. Success takes many small wins in the midst of some frustrating defeats. But we must always continue to look for ways to improve ourselves and get better at what we do. Always keep learning and hold onto that youthful enthusiasm as long as you can. If we're happy at work, we'll eventually find success.
On mentoring. "Older and wiser voices can help you find the right path, if you are only willing to listen."
You might be in the stage of your life where you're looking for a mentor. If so, remember to have two ears and one mouth and use them proportionally. Ask good questions, keep an open mind, and really think about what others with more experience may have to say.
And if you're ready to give back and be the mentor to others, remember that the experiences that you've had in your career can be valuable to your younger counterparts, and don't be afraid to pass this wisdom along if you're asked about it.
On figuring stuff out. "My voyage was never a well-conceived plan, nor will it ever be. I have made it up as I went along."
While life surely doesn't come with a manual, I'm a firm believer that if you follow your gut, you'll find your way.
So while the man on the sailboat won't be able to roll over your 401(k) or plan for your child's college education, his songs just might give you something to think about for your own personal financial decisions.
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