Warren Buffett, the “Oracle of Omaha”, the most successful investor known to mankind. He is the chairman and CEO of Berkshire Hathaway, which owns more than 60 companies. Of which, the five largest holdings being American Express, Apple, Bank of America, Coca Cola and Wells Fargo. In this blog, we’ll tell you about the world’s richest man who lives a modest, even frugal life in his hometown of Omaha, Nebraska.

Think long-term over short-term

This seems to be the life-mantra of Warren Buffett. He bought the first share of his life when he was 11. He still lives in the same And in an interview with Fortune, Buffett claimed he is “one-quarter Coca-Cola” as he drinks around five 12-ounces servings of Coca Cola everyday. And Coca Cola is one of his largest holdings as well.

Fun Fact: Nearly 94 percent of his wealth was earned after he turned 60.

“I don’t throw anything until I’ve had it for at least 20-25 years”

Which, maybe, is the pillar of his success. This is also depicted through his way of investing. Warren Buffett invests for long-term. He invests in a company keeping the long-term growth prospects of the company in mind. He invests in a company which he thinks has the ability to strive for a long-time. He’s been quoted saying he doesn’t throw anything away until he’s had it for at least 20-25 years. So thinking long term is natural for him and the ability to resist selling has proved to be very successful for him.

Fun Fact: Warren Buffett has only sent one e-mail in his life and it ended up in Federal Court

Warren Buffett spends 80% of his day in reading

And that’s how he does his research. Warren Buffett doesn’t own a computer and prefers to read books and newspapers instead of getting the result through one Google click. He reads around 500-1000 pages a day and invests in a company only after doing proper research.

Fun Fact: He takes a dozen kids to Dairy Queen every Sunday.

“My money is where my mouth is”

Warren Buffett practices what he preaches. He advocates investing in Index Funds and that’s what he has laid down in his will as well. In his will, Warren Buffett had demanded that his family’s money should be invested such as 10% of it is invested in cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund.” This is a very good approach if you want to start investing and has also proved to work wonders. Investing in an index fund is very secure since a single company might go bankrupt, however, the market will not.

Fun Fact: Warren Buffett has lived in the same Omaha house since 1958 that he originally bought for $31,500. It is a simple five-bedroom, 2.5-bathroom house.

Don’t try to outplay the market but play with it

No one can predict the ups and downs of the market. So, instead of trying to go against it it’s better to join the market. Since everyone is so keen on investing in the index fund, it’s better to invest in them too. Index Fund represents the whole market, and the market is sure to flourish in future. So, instead of investing in a few companies, it’s better to invest in the market, i.e., the index funds.

Fun Fact: In 2013, Buffett earned $37 million a day.