Billionaire investor Warren Buffett admits a surprising secret to his success: the word "no."
The Berkshire Hathaway chairman used to be eager to chase every opportunity that presented itself. But he says that being more purposeful with his time and energy has quite literally made him richer.
In an interview with Investment News, Buffett was asked, "What's your secret to your consistently amazing growth every year?"
His answer? "I've said 'No' more than any other time in my career."
"In the past, I was the guy chasing shiny objects," he tells Investment News' Brad Johnson, "so I'd be the guinea pig and test a handful of them each year in my practice. I would try three, four, five or more new ideas every year. Maybe one of them would pan out and lead to modest results, but the others were usually flops."
Now, his way of approaching things is totally different. Over the years he learned that following every lead was only going to wear him out and weigh on his margins.