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Warren Buffett’s Best-Kept Secret to Achieving Massive Success: Critical Thinking

Warren Buffett’s Best-Kept Secret to Achieving Massive Success: Critical Thinking

Critical thinking skills are essential to success — any kind of success. Successful individuals are thinkers and they surround themselves with thinkers.

Consider Warren Buffett. He is known as the most successful investor of all time, and by his own estimate, he has spent 80 percent of his career reading.[1] And what makes him so successful is that he isn’t willing to be a passive recipient of what he reads. Instead, he schedule time to evaluate the information he gets so as to form his own insights. This may sound counterproductive. We’ve been taught to work more, sleep less, and hyper-focus on the things that directly pertain to our goals. We call it being productive. Buffett and those like him find thinking, reading, and contemplating more productive than taking meetings and “working.” He actively pursues knowledge.

Why people with strong critical thinking skills like Warren Buffett are more likely to succeed

Critical thinking involves being able to process information independently and to think clearly, logically, and reflectively. It is the ability to engage in rational thought and to understand and establish a connection between ideas. In essence, critical thinking is the ability to reason. It is about being an active learner rather than a passive recipient of information.[2]

They always question the status quo

The status quo is the current state of affairs. It’s the norm. It’s how things are done. You know you’ve found it when you hear the phrase,“We’ve always done it this way.” Critical thinkers ask questions such as, “Why do we do it that way?” “How can we make it better?” “What are our other options?”

They break down problems into smaller components and see the subtle connections between them

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They love to test boundaries. They dissect issues and then find a way to systematically solve them. By examining the individual pieces of a problem they are able to apply solutions that create a domino or cascading effect. They solve one issue which effects another issue and are able to solve them both simultaneously.

They are sensitive to the loopholes in their logic 

Critical thinkers ruthlessly question ideas and assumptions rather than accepting them at face value. They will always seek to determine whether the ideas, arguments, and conclusions represent the entire picture. They do not rely heavily on intuition and instinct. They test, prove, and disprove their hunches.

We are all fallible. Critical thinkers understand this and actively work to find the flaws in their own logic. One’s ability to think critically varies according to his/her current state of mind. Thinkers work to maintain objectivity, view the problem from all possible angles, and seek the input of others who are adept in logic and reasoning.

They tackle problems with a systematic plan

A system is designed to streamline and simplify processes. It improves effectiveness and makes effort more efficient. Most critical thinkers use a top down approach to problem solving. They are systematic in their efforts. They also set aside time for investigating challenging issues and brainstorming ways to push through them. They don’t tackle a problem without a plan.

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They apply the scientific method to problem solving

Critical thinkers are usually highly methodical. They approach a problem the same way a scientist would and then move through the phases of the scientific method, conducting experiments to prove and disprove their hypotheses. Each experiment provides insight into the problem and proves or eliminates an idea or solution.

3 steps to improve your critical thinking skills

Critical thinking is a skill set, meaning it can be learned. Learning to think critically often involves tweaking some of our processes instead of merely trying to adjust our way of thinking. If you do things a certain way, your thinking will follow a certain pattern. You will begin to develop the habit of thinking practically and then critically. Developing this skill takes deliberate practice and persistence.

Here are three steps to get you started:

1. Recognize the biases in your thinking

Biases are common. We all have them. However, our biases lead to fallacies in our thought processes and rob us of our objectivity. The most common and detrimental bias is the confirmation bias- our tendency to see what we want to see. We tend to search for, interpret, favor, and recall information in a way that confirms our preexisting beliefs or hypotheses.

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To cure confirmation bias, experts[3] suggest that inundating yourself with information is not the answer. It’s all about how you filter the information you do have. When you don’t selectively filter information, you lose your objectivity which is the heart of logical thinking. This particular prejudice is most prevalent in emotionally- charged situations and when you have something to lose. It also shows up when wishful thinking is present.

For example, in the middle of basketball season the home town team has a record that is below 500 and has been on a seven game losing streak. The star player has just gone out with a torn ACL and your friend says to you, “I know in my heart that our home team will win the NBA Championship.”

This statement disregards the facts–or at the very least, fails to consider them– and makes a prediction based on a feeling.

Here are a few ways to overcome confirmation bias:

  • When you recognize a bias don’t abandon your initial hypothesis right away. It may be completely or even partially correct. Test your theory.
  • Keep an open mind. Work on trying to come up with alternatives no matter how far-fetched they may seem. Test all of your ideas.
  • Embrace surprises. Don’t discount them or get discouraged. The unexpected happens. Use this new “surprising” information to your advantage.

2. Use 5 “Whys” to find out the root causes of problems

The “Five Whys” methodology, developed by Sakichi Toyoda (founder of Toyota), uses a”go and see” philosophy. This turns the decision-making process into a search for a solution that is based on an in-depth understanding of what’s actually happening. This method simply involves asking, “Why?” five times, allowing you to dig deeper each time. The goal is to drill down and find the core of the issue.

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Here’s a quick example:

The problem you are attempting to solve is that customers are complaining that when they receive merchandise they purchased online it does not match what they ordered (they are getting incorrect items, sizes, etc.).

  • Why are customers receiving the wrong products? Because the shipping company’s warehouse shipped products that are different from what the customers ordered.
  • Why did the shipping company warehouse ship different products than what was ordered? Because the personnel filling the online orders called the order in and gave it to the warehouse via telephone to expedite shipping. Errors were made during this process.
  • Why are the online order fillers calling in orders instead of using the normal process? Because each shipping order has a slip that must be signed by the shipping directory before it is put into the system and sent to the warehouse.
  • Why does each order slip have to be signed by the shipping director before it is shipped? Because the shipping director records the information for his weekly reports to the company CEO.
  • Why does the shipping director have to record the information for each order this way? Because he does not know how to generate the report using the system the order fillers use to send their orders to the warehouse.

Using this process, we were able to locate the breakdown in the process around the third “why.” Asking “Why?” the last two times generated our solution: train the shipping director to use the existing software to generate his reports for the CEO.

3. Treat each problem like an experiment

Using the scientific method to solve problems is an effective and efficient mental model for solving problems. Most people approach problems haphazardly and dive into the middle of the issues and become overwhelmed or miss key elements. Following a process allows you to establish a habit. Remember critical thinking is a skill that requires practice and persistence. Start at the beginning of the process every single time. Here are the steps:

  • Define the problem. Ask a question to discover what the true issue is.
  • Do background research. Gather information.
  • Construct a hypothesis. Make a prediction based on what you know so far, being careful to account for confirmation bias.
  • Conduct experiments. Test your hypothesis. Apply the “Five Whys” methodology when necessary.
  • Analyze your data and draw a conclusion. Analyze the results of your experiments and put them to the test. Are there any other possible solutions? If so, test them out.
  • Communicate your results. Present your solution along with your research and evidence.

Always reflect on and review your processes. It helps you to find gaps in your thinking and to adjust. Reflection helps develop objectivity.

With time, practice, and diligence using these three steps your critical thinking process will become a habit. You’ll be able to better predict results, anticipate pitfalls, and avoid biased thinking.

Reference

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Denise Hill

Speech Writer/Senior Editor

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Last Updated on August 16, 2018

16 Productivity Secrets of Highly Successful People Revealed

16 Productivity Secrets of Highly Successful People Revealed

The same old motivational secrets don’t really motivate you after you’ve read them for the tenth time, do they?

How about a unique spin on things?

These 16 productivity secrets of successful people will make you reevaluate your approach to your home, work, and creative lives. Learn from these highly successful people, turn these little things they do into your daily habits and you’ll get closer to success.

1. Empty your mind.

It sounds counterproductive, doesn’t it?

Emptying your mind when you have so much to remember seems like you’re just begging to forget something. Instead, this gives you a clean slate so you’re not still thinking about last week’s tasks.

Clear your mind and then start thinking only about what you need to do immediately, and then today. Tasks that need to be accomplished later in the week can wait.

Here’s a guide to help you empty your mind and think sharper:

How to Declutter Your Mind to Sharpen Your Brain and Fall Asleep Faster

2. Keep certain days clear.

Some companies are scheduling “No Meeting Wednesdays,” which means, funnily enough, that no one can hold a meeting on a Wednesday. This gives workers a full day to work on their own tasks, without getting sidetracked by other duties or pointless meetings.

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This can work in your personal life too, for example if you need to restrict Facebook access or limit phone calls.

3. Prioritize your work.

Don’t think every task is created equal! Some tasks aren’t as important as others, or might take less time.

Try to sort your tasks every day and see what can be done quickly and efficiently. Get these out of the way so you have more free time and brain power to focus on what is more important.

Lifehack’s CEO has a unique way to prioritize works, take a look at it here:

How to Prioritize Right in 10 Minutes and Work 10X Faster

4. Chop up your time.

Many successful business leaders chop their time up into fifteen-minute intervals. This means they work on tasks for a quarter of an hour at a time, or schedule meetings for only fifteen minutes. It makes each hour seem four times as long, which leads to more productivity!

5. Have a thinking position.

Truman Capote claimed he couldn’t think unless he was laying down. Proust did this as well, while Stravinsky would stand on his head!

What works for others may not work for you. Try to find a spot and position that is perfect for you to brainstorm or come up with ideas.

6. Pick three to five things you must do that day.

To Do lists can get overwhelming very quickly. Instead of making a never-ending list of everything you can think of that needs to be done, make daily lists that include just three to five things.

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Make sure they’re things that need to be done that day, so you don’t keep putting them off.

7. Don’t try to do too much.

OK, so I just told you to work every day, and now I’m telling you to not do too much? It might sound like conflicting advice, but not doing too much means not biting off more than you can chew. Don’t say yes to every work project or social engagement and find yourself in way over your head.

8. Have a daily action plan.

Don’t limit yourself to a to-do list! Take ten minutes every morning to map out a daily action plan. It’s a place to not only write what needs to be done that day, but also to prioritize what will bring the biggest reward, what will take the longest, and what goals will be accomplished.

Leave room for a “brain dump,” where you can scribble down anything else that’s on your mind.

9. Do your most dreaded project first.

Getting your most dreaded task over with first means you’ll have the rest of the day free for anything and everything else. This also means that you won’t be constantly putting off the worst of your projects, making it even harder to start on it later.

10. Follow the “Two-Minute Rule.”

The “Two-Minute Rule” was made famous by David Allen. It’s simple – if a new task comes in and it can be done in two minutes or less, do it right then. Putting it off just adds to your to-do list and will make the task seem more monumental later.

11. Have a place devoted to work.

If you work in an office, it’s no problem to say that your cubicle desk is where you work every day.

But if you work from home, make sure you have a certain area specifically for work. You don’t want files spread out all over the dinner table, and you don’t want to feel like you’re not working just because you’re relaxing on the couch.

Agatha Christie never wrote at her desk, she wrote wherever she could sit down. Ernest Hemingway wrote standing up. Thomas Wolfe, at 6’6″ tall, used the top of his refrigerator as a desk. Richard Wright wrote on a park bench, rain or shine.

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Have a space where, when you go there, you know you’re going to work. Maybe it’s a cafe downstairs, the library, or a meeting room. Whenever and wherever works for you, do your works there.

12. Find your golden hour.

You don’t have to stick to a “typical” 9–5 schedule!

Novelist Anne Rice slept during the day and wrote at night to avoid distractions. Writer Jerzy Kosinski slept eight hours a day, but never all at once. He’d wake in the morning, work, sleep four hours in the afternoon, then work more that evening.

Your golden hour is the time when you’re at your peak. You’re alert, ready to be productive, and intent on crossing things off your to-do list.

Once you find your best time, protect it with all your might. Make sure you’re always free to do your best uninterrupted work at this time.

13. Pretend you’re on an airplane.

It might not be possible to lock everyone out of your office to get some peace and quiet, but you can eliminate some distractions.

By pretending you’re on an airplane, you can act like your internet access is limited, you’re not able to get something from your bookcase, and you can’t make countless phone calls.

Eliminating these distractions will help you focus on your most important tasks and get them done without interruption.

14. Never stop.

Writers Anthony Trollope and Henry James started writing their next books as soon as they finished their current work in progress.

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Stephen King writes every day of the year, and holds himself accountable for 2,000 words a day! Mark Twain wrote every day, and then read his day’s work aloud to his family to get their feedback.

There’s something to be said about working nonstop, and putting out continuous work instead of taking a break. It’s just a momentum that will push you go further./

15. Be in tune with your body.

Your mind and body will get tired of a task after ninety minutes to two hours focused on it. Keep this in mind as you assign projects to yourself throughout the day, and take breaks to ensure that you won’t get burned out.

16. Try different methods.

Vladimir Nabokov wrote the first drafts of his novels on index cards. This made it easy to rearrange sentences, paragraphs, and chapters by shuffling the cards around.

It does sound easier, and more fun, than copying and pasting in Word! Once Nabokov liked the arrangement, his wife typed them into a single manuscript.

Same for you, don’t give up and think that it’s impossible for you to be productive when one method fails. Try different methods until you find what works perfectly for you.

Featured photo credit: Unsplash via unsplash.com

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