What does one do with money? Spend it of course! is your most likely reply. While spending on yourself isn’t a shabby idea, there’s an even better idea. Increase your wealth and have so much more to spend!!

But how does one go about doing this? Simply Invest, invest, and invest some more. Consider below how the third richest man in the world, Warren Buffett, goes about this business of investing.

1. Invest Only In What You Know and Ensure To Move Your Money Around

48% of his investments are spread across three companies – Wells Fargo, Kraft Heinz and Coca-Cola. Companies that he understands so well, and whose products he uses!

 As a percentage of his investments, 35% is in the financial sector, followed by 17% in the consumer goods sector, and 12% in the technology sector. But these only account for 64% of total investments, the remaining 36% are kept in industrial goods, health care and basic materials.

See how well he has moved his money around?

2. Look Ahead To the Future, But Don’t Forget the Present Too

Warren Buffett has made investment commitments in solar and wind energy because he realises that these are the future sources of energy.  

He also made sizeable investments in energy companies like ConocoPhillips which was made in 2014 at the peak of gas prices, though the fall in prices at that time led to some losses. But later investment in energy company, Phillips 66, was made with more prudence.

So, investing is just like all things related to life, learn from mistakes and move on to better investment choices. Keep your eye on the future, but focus on the present too.

3. Have High Ambitions and Remain Hungry For Success

As recent as November 2015, Buffett committed additional money to help build the largest collection of high-end real estate agencies in the United States. Through the purchase of several brokerage firms, he has brought his number of real estate agents to over 26,000, with 480 offices in 27 states of the US.

His goal is to build the largest collection of high-end real estate agencies in the U.S with a projected yearly revenue of $160 billion, which would surpass revenue of the current largest brokerage firm in the United States with an average sales volume of $156 billion. 

With these basic fundamentals of investing, you may just be a Warren Buffett in the making!