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Many of us have wondered: if Warren Buffett had to start all over again, how would he make his billions back? In a Berkshire Hathaway (BRK.B) (BRK.A) Annual Meeting, Buffett revealed insights into his mindset at 23, offering young entrepreneurs a timeless blueprint for building wealth — and it doesn't involve chasing the latest tech trends.
Start Where You Have an Edge
When asked what industry he would dive into if he were a 23-year-old entrepreneur today, Buffett's response was refreshingly simple: "I would probably do just what I did when I was 23... I would go into the investment business." His rationale? You don't have to be a tech genius to succeed. Instead, you need to recognize where you have an edge and a genuine curiosity.
Buffett's success wasn't built on following trends. He didn't try to predict which industry would boom next. Instead, he took an old-school approach — relentless curiosity and deep research. When Buffett was young, he visited the CEOs of companies in industries that caught his interest, whether coal or insurance. The goal was always to learn from the best and ask critical questions. One of his favorite techniques was asking CEOs, "If you had to invest in any company other than your own for the next 10 years, which one would it be and why?" This simple but powerful question allowed him to gather valuable insights, often giving him a better understanding of the industry than the executives themselves.
Curiosity Drives Wealth
What drives Warren Buffett? Curiosity. In his early days, he would show up unannounced at companies, armed with questions. The executives, intrigued by a young man from Omaha with an interest in their business, were often happy to share their insights. Buffett's method wasn't about creating the next big tech startup. It was about learning everything he could from those who knew their industries best.
"You don't have to learn how to start another Facebook or Google," Buffett said. Instead, he emphasized that one should focus on learning the economic characteristics of companies.
Stay Within Your Circle of Competence
Buffett and his partner Charlie Munger have always stressed the importance of staying within your "circle of competence." This means focusing on areas where you have expertise or a natural ability to learn. Munger explained it simply: if you're five foot two, you're probably not going to have a future in the NBA. Similarly, if tech isn't your strong suit, there's no need to force yourself into it.
Instead, Buffett and Munger advise focusing on industries that play to your strengths. For Buffett, it was finance and investing. For you, it might be something entirely different — and that's okay. What matters is recognizing your strengths and staying within that zone.
Building Wealth in the Modern World
Buffett's approach stands in stark contrast to today's tech-centric mindset. Young entrepreneurs often feel pressured to dive into industries they don't fully understand. But Buffett's message is clear: it's not about following trends. It's about playing to your strengths and becoming the smartest person in the room, regardless of the industry you choose.
On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
