warren buffett 5/25 rule

Warren Edward Buffett is all time one of the most successful investors in the history of America with $88.9 billion as of December 2019.

Someone’s sitting in the shade today because someone planted a tree long time ago.

Warren Buffett

He is also known as “Oracle of Omaha,” Warren Buffett is one of the most successful investors of all time. Buffett is CEO of Berkshire Hathaway, which owns more than 60 companies, including insurer Geico, battery maker Duracell and restaurant chain Dairy Queen.

The story of 5/25 rule goes to when Buffett one day approaches his old pilot, Mike Flint, after realizing that Flint had worked for him for the past 10 years. He walked up to the Flint and jokingly said to him.

“The fact that you’re still working for me, tells me I’m not doing my job”

To find out Flint goal, He conducted simple exercise which is known as 5/25 rule.

Warren Buffett’s 5/25 Rule

warren buffett rule

Excercise begins with listing 25 things that Flint ever wanted to accomplish in his life. Nothing was off the table.

The next part of the exercise is Flint has to rank these items in an order of importance and categories the top five things he wanted to accomplish in the foreseeable future. Finding this top five thing is very difficult to flint then listing down the top 25 things.

Just after Flint managed to find the top five things he wants to achieve in the future. Buffett intensely asked what you want to do the remaining 20 items.

Flint simply answered “Well the top five are my primary focus but the other twenty come in at a close second,” Flint explained. Top five-goal are much important and want to complete in the future but the remaining 20 were just wishing that come secondary in completing the goal.

At this point, after listening to the complete story Buffett’s responded.

“No, You’ve got it wrong. Everything you didn’t circle just became yours Avoid At All Cost list. No matter what, these thing get no attention from you until you’ve succeeded with your top 5.”

Flint certainly wasn’t expecting that.

The Advantage of Selective goal.

Goal

Buffett explained the more you confused around your goal the more they fade.

It means a choice or selecting goal has never been more abundant than others in history due to fast change in today’s life. The goal was changing very fastly. so, to focus on a particular goal and sticking to until you achieve it is the only way to complete your goal.

Your odds of success improve when you direct your complete focus into a singular goal. You have to be more selective in your goal and work much harder than the thing about achieving multiple goals.

Warren Buffett’s 5/25 rule can be used in relation to career goals, but it is far more than that we can apply 5/25 rule in our daily life like in our work, health, relationship, study, etc.

How to apply Warren Buffett’s 5/25 rule

goal setting

To apply 5/25 rule in your life simply perform below three steps and find out what is our deepest goal which you want to achieve at any cost and focus your complete energy in achieving that goal.

  • Write down your top 25 goals.
  • Draw a circle around your top 5 goals.
  • Focus on your top five goals and say buy to rest of them.

The psychology behind Warren Buffett’s 5/25 rule.

From the perspective of psychology prioritizing your goal is like goals are those tasks that you want to accomplish but they require your effort and time.

These two thing effort and time is very limited and should be categories properly. so, by prioritizing your goal will help to put your complete energy and focus on less thing which is much important.

How to apply 5/25 rule in day to day life.

Buffett advice to Flint involved in Flint career goals but we can apply the 5/25 rule for better focus and prioritizing of your everyday goals.

like you apply 5/25 rule in various thing example.

Your goal is to be more productive in everyday life then you prioritize your everyday task with the top five things. Find out how to avoid mobile phone distractions.

of Your goal is to get fit and stay healthy like successful people then using 5/25 rule you can write down your top five health goal i.e. to lose 10 pounds, sleep early wake in the morning, stop eating street food or junk food and eating healthy food or fruit like banana, etc.

You can check out how 30 runnings can change your life.

Conclusion

Warren Buffett is one of the most successful person and one of the most popular investor in the history of mankind. The formula 5/25 is very effective if every follow it properly by prioritizing your focus.

FAQ

What is Warren Buffett’s secret formula to success?

There is no such formula that improves your odds of success. Buffett is mostly successful because of his selective habit and deepest understanding of things.

What is Warren Buffett’s rule?

Buffett’s work ethics and the rule are different than other might able to think but his 5/25 rule which is the story of his old worker Flint is very famous which explains Buffett’s mindset about achieving success in life.


2 Comments

Intezar · 16/01/2020 at 10:57 PM

The way you expalined is fabulos and I want you to write more on self development topic.

    Vivek · 16/01/2020 at 11:00 PM

    Thank you Intezar, Subscribe to Newsletter to stay tune on new post in future related to self development.

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