Warren Buffett is often called the Oracle of Omaha, and with good cause! His $75 billion fortune makes him the fourth-richest person in the world, behind his good friend Bill Gates, Amazon founder Jeff Bezos, and Zara founder Amancio Ortega. There are many legends surrounding Buffett and his amazing fortune. He started following the stock market when he was 11 years old. He eats a diet filled with soda (Cherry Coke to be exact) and junk food and his net worth is greater than the GDP of the entire country of Uruguay. He still lives in the relatively modest home he bought decades ago. Suffice it to say, Buffett is a bit of a character and a loveable one at that.
However, Buffett is also a legend and there's one mental habit that he credits with his success in investing. When it comes to investing—either in the stock market or in a business – Buffett knows it is not good to focus too much on what has just happened or what may happen tomorrow. When you pay too much attention to the immediate past or the immediate future you can miss the signs of trends. Changes are best recognized by taking a step back to look at a longer period of time.
It takes discipline and a considerable amount of effort to see the bigger picture. But when you do it can help you stay motivated throughout the day-to-day slog and struggle of running a business. People who see the big picture can stick it out when tough times hit. People who see the big picture know that better days are ahead. People who focus too much on the immediate past or the immediate future panic and sell stocks, or make rash, reactionary business decisions when things get tough.
Seeing the bigger picture is a form of optimism – you trust that what is happening right now is not how it will always be. That's especially helpful when the present or immediate future seems particularly bleak.
Hmmmm. Seems like that mental habit could be applied to life in general. Relationship troubles? You'll move past it. Broke right now? You won't always be! Have writer's block? Walk away from the computer and relax, it will be better tomorrow!
Leave it to the Oracle of Omaha to give us a tip that can improve our whole life.