Warren Buffet’s 24-year-old wallet was previously sold for $240,000 at a charity auction. Inside the wallet was a personal item that reveals ten secrets of Warren Buffett.
The momento that was kept by Warren Buffett was a $50 bill issued by the Illinois National Bank and signed by Eugene Abegg, the owner and founder.
In what way does this item contain the secrets of Warren Buffett?
Well, one of Warren Buffett’s early purchases was that of Illinois National Bank. According to Warren Buffett expert Robert P. Miles, this purchase provides an excellent example of ten investment and management principles of the great investor.
Without going into details, here are the ten principles as explained by Robert P. Miles.
1) Invest in an old economy company that’s a leader in an industry you understand.
2) Invest in companies with consistent earnings.
3) Pay only a reasonable price even for an outstanding business.
4) Buy a lot of the company, and keep it.
5) Invest in businesses with experienced managers in place.
6) Leave talented managers alone to do their jobs and compliment them from a distance.
7) Buy companies from owners who care more about who’s buying the business than how much they’ll get for it.
8) Invest in companies whose managers are frugal and care about costs.
9) Don’t force experienced managers to retire.
10) Above all else, know the character of the manager.