The fact that Buffett has achieved so much means his advice is highly sought after, but he thinks anyone can do the same if they follow one simple rule: the Buffett Formula.
The Buffett Formula is far from complicated. In fact, "formula" is a bit of a misnomer. According to the Oracle of Omaha, the key to success is going to bed a little smarter each day.
It's a basic suggestion, but -- like a good investment -- it holds the power of compounding interest. Adopt this sole principle, add in a healthy dosage of time, and the results will speak for themselves.
Putting the Formula Into Practice
So how can you put the formula into action? I'm glad you asked. With the advent of the internet and computers in almost every home, there are innumerable resources available online to "going to bed smarter" each day.
The best part? Many of them are completely free. Examples include Codecademy, which offers free coding classes, or Khan Academy, where you can learn almost anything without spending a dime.
Even YouTube holds a wealth of knowledge about virtually any subject that might interest you.
Still, surrounded as we are by technology, one of the best ways to amass knowledge -- and the one most enthusiastically endorsed by Buffett -- is to read books.
Whether or not you have time for such an ambitious goal is largely irrelevant. The point of the Buffett Formula is to make whatever progress you can.
Progress Is Power
When you make improvements on a daily basis, even incremental ones that are virtually unnoticeable in the short-term, it's important to remember that time is on your side.
It's when you look back in six months, or a year, or a decade that you'll start to notice astounding results that you never could have predicted. Buffett points out the strong similarity with investing, saying "That's how knowledge builds up. Like compound interest."
I'm going to humbly add an asterisk to the billionaire's advice. Don't be put off by the lofty, 500-page goal. Very few of us can squeeze that amount of reading into a single day, but all of us can fit in 15 pages. If you read just 15 pages each day, you will have read almost 5,500 after a year has passed, gaining a veritable tome of knowledge in the process. Few will follow it, but the best part about the Buffett Formula is that anyone can.