3 Warren Buffett Tips That Could Help the Upper Class Become Richer

According to the Pew Research Center, the median upper-class household income is $256,900. Those who consider themselves in the upper class account for just 2% of the entire U.S. adult population.

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If you’re upper class and want to build more wealth, there’s no better person to learn from than the Oracle of Omaha, Warren Buffett himself. Buffett became a billionaire back in 1985 when only a dozen people could claim the same. Today, Buffett has an estimated net worth of $146 billion.

While Buffett built his fortune slowly and started from when he was a kid, you might have the upper hand if you’ve already accumulated a small fortune. That said, here are a few Warren Buffett tips you can still learn from as you continue building wealth.

There’s a saying: “Money begets money.”

But just because you’re already earning a high salary doesn’t mean you’re rich. Nor does it mean you’ll stay wealthy once you get there.

To build true, sustainable wealth, you need to make strategic decisions. In Warren Buffett’s case, a big part of this entails value investing.

In simple terms, value investing is the art of choosing stocks that seem to be priced near or below their intrinsic value. If you buy a stock that’s priced at $50 but you believe it’s worth $100, you’ll gain $50 simply by waiting for it to rise to its true value.

According to Benjamin Graham, the father of value investing, whom Buffett also learned from, the best option is to purchase stocks when they’re priced two-thirds or less of their intrinsic value. That way, you’ll get the best returns while minimizing risk.

“In the short run, the market is a voting machine, but in the long run it is a weighing machine,” Buffett once said, paraphrasing Graham. “The speed at which a business’s success is recognized, furthermore, is not that important as long as the company’s intrinsic value is increasing at a satisfactory rate. In fact, delayed recognition can be an advantage: It may give us the chance to buy more of a good thing at a bargain price.”

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The stock market fluctuates all the time. But when you’re building long-term wealth, Warren Buffett advises staying in it for the long haul.

“Time is your friend; impulse is your enemy,” he said. “Take advantage of compound interest and don’t be captivated by the siren song of the market.”

In other words, don’t try to time the market. And don’t make rash decisions to buy or sell-off your shares at the first sign of a downturn. Just because you have a high income doesn’t mean you should waste it. And if history’s anything to go by, it’ll right itself in the long run.

When you look at someone like Warren Buffett, you might think it was through some greater intellect that he amassed his fortune. But that’s not entirely true.

Buffett did earn a master of science in economics, and there’s no denying he’s made smart, strategic investing decisions. However, his intelligence is only part of what’s made him successful. The other part? His attitude.

“The most important quality for an investor is temperament, not intellect,” Buffett said. “You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.”

That’s not to say you should skip out on education or make uninformed investing decisions. But again, you also should avoid following the trends or making rash decisions when the market falls.

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