WHY ONLY 2% SUCCEED AND 98% DON’T

In this episode, we dive deep into three transformative strategies inspired by Warren Buffett’s legendary success. Known as the "Oracle of Omaha," Buffett has built his legacy through simple yet profound philosophies that anyone can apply to their own life.

• Dream Big: Learn how Rose Blumkin, an immigrant with no formal education, turned $500 into the largest furniture store in America, catching Buffett’s attention and investment. Discover why dreaming, saving, and staying committed to long-term growth is a game-changer.
• Focus on What You Can Control: Jack Taylor’s story of building Enterprise Rent-A-Car teaches us how focusing on customer experience and small, controllable factors can lead to massive success—even in tough competition.
• Invest in What You Understand: Buffett's disciplined approach to investing reminds us to stay within our "circle of competence," making informed, rational decisions for sustainable success.

Join us as we unpack these lessons and explore how to apply them in your life, from career growth to personal finance. Remember, success is built step by step—not overnight!

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Transcript

3 POINT NUGGETS EP 19

WHY ONLY 2% SUCCEED AND 98% DON’T

  Warren Buffett is known as a wizard of Wall Street and is worth over USD 140 billion. His name is synonymous with wealth and power as one of the richest men in the world, but despite these achievements, his business philosophy is really simple. 

 In this video, we look at three of Buffett’s most popular philosophies that has made him so successful and show you how to apply them to your life so you too can succeed.

 One 

Have a dream.

 Buffett tells the story of Rose Blumkin who was born in 1893 near present day Belarus and immigrated to the US in 1917 to reunite with her husband. Rose had never gone to school in her life, could not speak English, read, or write, but she was determined to make a mark in the world. 

 In 1919, the family moved to Nebraska where they started a used clothing store. At that time, Rose saw an opportunity to educate herself and grabbed it with both hands. Her eldest daughter Frances was attending school and every day she returned from school, she would teach Rose the words she had learned giving her some education.

 But it was at the clothing store that the most dramatic transformation took place. Rose began to save all she could and grew her savings consistently. And by 1933, she had saved up to $500. 

 Rose was now in her mid-forties and used the $500 to establish the Nebraska Furniture Mart in the basement of her husband’s store. Rose grew the business to become the largest indoor furniture store in America and this caught the attention of Warren Buffett and he approached her to buy the company.

 In 1983, 50 years later, Buffett’s company Berkshire Hathaway purchased a 90% share of the Nebraska Furniture Mart for $60 million. Rose continued to work for Buffett until she retired in 1989, Six years later. And then in another twist, Rose came out of retirement 3 months later to open a rival store directly across the street from the Furniture Mart. Buffet also bought the company in 1991 after it started making profit.

 Rose continued to be involved in the day-to-day operations of the business until she died in 1998.

Buffett applies this strategy to his business. He buys stocks even if they not doing exceptionally well and dreams that in the long run, they would yield huge profits. For example, in 1988, despite the stock market crash of 1987, Buffett invested over $1 billion to buy Coca Cola stocks, as he believed in the company's brand power, business model, and growth potential. 

While everyone waited anxiously to see what would happen, over time, the investment in Coca-Cola became one of his most profitable, reflecting the rewards of his patient approach. In mid-June 2024, the value of the Berkshire Hathaway’s holding in Coca Cola was more than $27 billion making it the largest single shareholder. 

 You should be investing in personal skills if you want to succeed. Focusing on continuous learning and skill-building, keeping the dream that the right opportunities will open in the future.

You should be saving some money from whatever you earn now, no matter how small Rather than seeking short-term gains, focus on investments or savings that grow steadily and compound over years.

You should focus on building a career- Commit to gradual growth, instead of hopping from job to job for quick gains. Keep believing in the dream. That’s the way to succeed.

Two.

FOCUS ON WHAT YOU CAN CONTROL

Buffet tells another story of a guy who was born in 1922 in America. He went to college for a year and dropped out because he was simply not interested. Today, the company, he founded hires a considerable number of college graduates each year in America.

After fighting  in WW2 with the Navy, this guy went back to America and went from job to job for a while until he landed a job as a used car salesman in a Cadillac dealership in Missourri. 

He was just a regular guy working at his job until one day at the age of 35, he walked up to his boss and said, “Could I go in the car leasing business with you?”. The boss looked at him and said, “if you cut your salary in half, and give me $25,000, we have a partnership. This guy raised the $25, 000 and started his business Enterprise Rent-A-Car with seven cars.

But the dream did not deliver immediately, and business was slow. In those days, when his phone rang, he would let it ring for 3-4 times before picking it up to give callers the impression that he was busy taking other calls. 

Faced with the prospect of failure, this guy at the age of 40 with 17 vehicles decided to go into competition in the rental car business when he founded Enterprise Rent-A-Car, effectively taking on giants like AVIS and HERTZ who could boast hundreds of thousands of cars. This guy’s cars had nothing extraordinary so what was he going to build his business on? How was he going to compete for a market share?

Here's what he came up with. He was going to use the golden key to unleash his success by doing two things. Delight his customers, work with people to establish a relationship with them so they in turn could replicate the concept of delighting the customer.

He succeeded in doing just this and at his death, Rent-A-Car was worth more than double AVIS and HERTZ, his most prominent competitors. This guy’s name was Jack Taylor.

Buffett teaches that you don’t have to worry about the stock market or the Federal reserve, or that you did not invent artificial intelligence. Those are things you cannot control. But he suggests you focus on the one thing only you can control or change. In Jack’s case, he was focused on changing the customer experience. 

The question to you would be? In your case, “What is the one thing you can change? Can you think of any? Can you start working on it right now?

Jack’s story teaches us that sometimes, we don’t need something outside of us to succeed. Your current job, your current relationship, your current savings could all be turned into huge successes if you focus on the one thing you can change. 

Hey, before we go into the third strategy from Buffet, please subscribe to the channel and turn the notification bell on if you are new here so you never miss an episode from us. On this channel, we focus on the success strategies of successful people and encourage you to apply them to your life.

3. INVEST IN WHAT YOU UNDERSTAND

Buffett told Berkshire Hathaway's annual shareholders at the 2019 meeting that they should invest in what they know and "expand your circle of competence if you can.”

 You're effectively taking a shot in the dark when you throw money at an industry that leaves you clueless as to how and why it might succeed or fail.

According to Buffett, you should not go into an investment to lose money. For instance, For a long time, Buffett refused to invest in high-tech stocks like Apple back in their pilgrimage because he admits he didn't fully understand what they were about or what they were trying to achieve.

Don't place your money in an area where you're "incompetent," at least until you become competent. Take some time to educate yourself first.

Buffett bought his first Apple shares in 2016 long after it had been established which is a testimony to his ability to hold on to his values which is to invest only in companies he knows and trusts.

So for you, the fact that something is trending at the moment does not mean it is meant for you. In George Clason’s Richest Man in Babylon, Arkad tells his students, “Guard thy treasures from loss”. Don’t invest out of emotions. If you do not know the business. Ensure you place your money only in the hands of those who know it. 

 So, what can we learn from Buffett's journey? 

Have a dream. You can always achieve what you dream of. Dreaming is free so why not  dream. 

Focus on what you can control. If you turn the blame away from the government, the Reserve Bank, or the state of the economy, you might discover a niche where you can excel. 

Invest in what you know. Don’t be in a rush to get to the top. Learn your trade and gradually work your way up. Joe Girard once said , “The elevator to success is out of order. You'll have to use the stairs... one step at a time.”

Thanks for listening and let me know in the comments below what you find interesting about Warren Buffett’s strategies. Don’t forget to follow, like and share to help our channel grow. Turn on the notification bell and listen to my other episodes if you want to get more inspiring stories about successful people.

Always remember, with God all things are possible. I’ll see you in the next episode. God bless you.