Warren Buffett Made A Fortune In Wall Street Investments Through The ’20-Slot Rule’
The Wealth Gang team writes about financial information, passive income ideas, apps, programs, cash management tools and other wealth gadgets that we think you might want to use or learn more about. Sometimes, we write about products, services or items that might be associated with affiliate partnerships. In these instances, we will earn a small percentage of the revenue from sales. There is, of course, no cost to you.
Thank you for all your support! Without you, we could not keep this site running. Gang Gang!
Billionaire investor Warren Buffett made a fortune through an investing strategy known as the “20-Slot Rule.”
Buffett’s lifelong Berkshire Hathaway partner Charlie Munger revealed that the Oracle of Omaha subscribed to the “20-Slot Rule.”
During the 1994 commencement speech at the University of Southern California, Munger explained Buffett’s “20-Slot Punchcard Rule” investment strategy.
“I could improve your ultimate financial welfare by giving you a ticket with only 20 slots in it so that you had 20 punches – representing all the investments that you got to make in a lifetime,” Buffett said, according to Munger. “And once you’d punched through the card, you couldn’t make any more investments at all.”
Buffett warns that only “three or five or seven” investments could bring wealth, but notes “what you can’t do is get rich by trying one new idea every day.”
“Under those rules, you’d really think carefully about what you did and you’d be forced to load up on what you’d really thought about,” Buffett reportedly told the USC students. “So you’d do so much better.”
Munger purportedly said, “To me, it’s obvious that the winner has to bet very selectively. It’s been obvious to me since very early in life. I don’t know why it’s not obvious to many other people.”
Inc reported, “When you resist the distractions of chasing after things that don’t truly serve you and wholeheartedly direct your focus and attention to the things that do, you’ll reap the returns. It’s having the dedication to pouring your whole being into something long-term, rather than for a short season halfheartedly. When you do, you’re practicing the 20-Slot Rule and your odds of success will greatly improve.”
CNBC noted, “Buffett’s 20-slot rule can be applied to all aspects of life, and not just money, because what it really drives at is the importance of focus. And the billionaire has hinted at this advice several times in the past.”
Current Top Offers
Invest in Commercial Real Estate With As Little As $10
Get a $50 bonus for creating and funding a new account
Invest spare change easily. Get $5 when you sign up for Acorns.
Earn an unlimited 1.5% back in Bitcoin on every purchase with the BlockFi Rewards Visa® Signature Credit Card.
Put your crypto to work. Get up to a $250 crypto bonus with a transfer of $100 or more in crypto.