When you invest in the things that you understand and are passionate about, the entire investing process is simplified, making it easier for you to navigate the various decisions that must be made along the way. This is a concept that Warren Buffett has used to become a billionaire, and it’s something that he continues to abide by to this day.
In every sense of the phrase, Warren Buffett's favorite things have made him rich.
Let's look at Warren Buffett's stocks and just how he has used his values and his passions to earn money through investing. Consider these examples as inspiration for what can be achieved when you invest with your values.
Warren Buffett is known for drinking Coke every single day. In fact, he has confessed to drinking as many as five Cokes on an average day.
At a 2017 shareholder's meeting for Berkshire Hathaway, Buffett said, "I think Coca-Cola has been a very positive factor in the country and the world. And I really don’t want anyone telling me I can’t drink it. I think there’s something in longevity of feeling happy about your life."
Along with enjoying Coca-Cola's products, Buffett is also a big fan of the company itself, with Berkshire Hathaway owning 9% of all Coca-Cola stock.
While the decision to invest in Coca-Cola was no doubt based on the company's value, moat, and other important fundamentals, Buffett's personal love for Coke played an important role in why it was targeted as an investment decision in the first place.
Warren Buffett LOVES McDonald's. He even has the menu and the prices memorized.
The ever-frugal billionaire, Buffett chooses his morning meal from McDonald's depending on how prosperous he is feeling that day, telling his wife to put either $2.61, $2.95, or $3.17 in a cup each morning depending on the breakfast sandwich that he intends to buy that day.
Since 1998, Warren Buffett has also been invested in McDonald's stock, once again aligning his money with the things that he enjoys.
3. See's Candies
Warren Buffett, rather unsurprisingly, has quite the sweet tooth. When Buffett discovered a company called See's Candies, he knew that he had found a fun treat to enjoy as well as a new company to invest in.
In addition to enjoying the fudge and peanut brittle that See's Candies produces, Buffett also appreciated the company's simplicity.
They do one thing - produce candy - and they do it very well. It's an incredibly simple business model to understand, and See's Candies has this business model down to a science. It impressed Warren Buffett so much that he chose to purchase the company in 1972 and has owned it ever since.
In fact, Buffett considers purchasing See's Candies as an important turning point in his investing strategy, saying, "Watching See’s in action, I gained a business education about the value of powerful brands that opened my eyes to many other profitable investments."
If you can't tell by now, Warren Buffett loves his food. However, as much as Buffett loves peanut brittle and breakfast sandwiches from McDonald's, he loves reading even more.
Warren Buffett reportedly reads about 500 pages of material every single day, and he credits much of his success to this habit.
While Buffett enjoys a wide range of reading material, it's the material he reads about various companies and investing that has played an especially large role in making him wealthy.
Through consistent reading, Warren Buffett has acquired an immense amount of knowledge on investing and has used that knowledge over the course of his lifetime to become a billionaire.
While reading has always been an essential part of Warren Buffett's approach to investing, it's also a hobby that he genuinely enjoys and one that he would continue enjoying even if he was no longer making investments.
By turning something that he enjoys and is passionate about into something that furthers his investing career, Buffett has been able to combine the hobby he enjoys most with his career - and the results speak for themselves.
Now I’d love to hear from you. What things do you love? Are they the type of things you can invest in? Leave a comment below with your answer. While you're here, you can start down your path to financial freedom by downloading this free book of quotes and tips!
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