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10 Leadership Lessons That Warren Buffett Taught Us

10 Leadership Lessons That Warren Buffett Taught Us

Who could not be inspired by Warren Buffett, who has promised 99% of his wealth to charity? That wealth is worth about $40 bn. He started selling newspapers at the age of 11 and he is now 84 with no intention of retiring.

“I would say that life at 84, I am having as much fun as I’ve ever had in my life. I mean I get to do what I love every day with the people I love—and it just doesn’t get any better than that.” – Warren Buffett.

He has written extensively about his business success and is in great demand as a speaker on leadership. Here are 10 lessons that he has taught us.

1. Love what you do.

“There comes the time when you ought to start doing what you want. Take a job that you love. You will jump out of bed in the morning. I think you are out of your mind if you keep taking jobs that you don’t like because you think it will look good on your resume. Isn’t that a little like saving up sex for your old age?” – Warren Buffett

Listen to any interview with Warren Buffett and you will hear how passionate he is about his job. He is convinced that this will give anyone in business a competitive edge. If you are thinking of taking a new job which you are not enthusiastic about, it might be worth thinking again.

2. Learn how to communicate effectively.

“You’ve got to be able to communicate in life and it’s enormously important. Schools, to some extent, under emphasize that. If you can’t communicate and talk to other people and get across your ideas, you’re giving up your potential.” – Warren Buffett

Read any letter to shareholders in Warren’s company, Berkshire Hathaway Inc. You will be immediately struck by the non technical language, the clarity of thought and how he gets his message across, with the minimum of jargon. His success is also due to his intimate knowledge of the business.

Warren Buffett was terrified of public speaking and had to enroll in a course to overcome his fear. Aim for easy and clear communication in your own business whether it is a memo to your staff or speaking in public.

3. Choose your business associates wisely.

“It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.” – Warren Buffett

He was able to spot successful and talented people and used a few basic networking skills to keep up contact and be inspired by their success. If you hang out with mediocre associates, they will never inspire you to do better and aim higher.

Read about Guy Spier who was prepared to pay $650,000 for a lunch with Warren Buffet because he wanted to be inspired by an extraordinary entrepreneur. The money went to charity, of course. Yes, there is no such thing as a free lunch!

4. Don’t micro manage.

“Hire well, manage little.” – Warren Buffet

He strongly believes that great leaders need to spot and hire great talent. He also lets them get on with it and rarely interferes so that they feel empowered by this independence. The lessons for future leaders are clear. Have fewer meetings and call your CEOs and managers less often.

5. Plan for the future.

“The primary job of a board of directors is to see that the right people are running the business and to be sure that the next generation of leaders is identified and ready to take over tomorrow.” – Warren Buffet

Buffett already knows that his job will be divided into three, once he decides to step down. The board has already chosen a CEO candidate and a non-executive chairman plus an investment manager.

Future leaders need to think ahead about their successors and how they will be groomed for success. It is no surprise to learn that the most successful companies have predictive models in place for their promising talent for the next five years at least. They also place heavy emphasis on education and skills development for their staff.

6. Transparency is highly appreciated.

“If anything, taxes for the lower and middle class and maybe even the upper middle class should even probably be cut further. But I think that people at the high end—people like myself—should be paying a lot more in taxes. We have it better than we’ve ever had it.” – Warren Buffett

Bill Gates admires Buffett for many reasons. Even on such a sensitive issue as taxation, Gates admires him because his transparency is invaluable even though it might not be in his own best interests.

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Transparency at every level pays off handsomely in every business field. Employees are tired of surprises and there is a growing demand for delivering the truth.

7. Patience is a virtue.

“No matter how great the talents or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant.” – Warren Buffett

There is no doubt that Buffett has demonstrated patience throughout his career. This great quality goes hand in hand with a certain bravery and perseverance. Great leaders need to resist pressure and have the tenacity to see the project through to the end.

8. Manage your time wisely.

“You’ve gotta keep control of your time and you can’t unless you say no. You can’t let people set your agenda in life.” – Warren Buffett

When Guy Spier had lunch with Buffett, he was shown his diary. It was remarkably empty. The billionaire explained that he preferred to have time for serendipity. It also gives him the freedom to spend the time in ways that he sees as priorities. It also means that he has learned how to say ‘no’ when necessary. The lack of appointments for meetings was noticeable!

Learning to organize their office space, their emails and how much time they spend online are usually great ways leaders can manage their time more effectively.

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9. Be prepared to take risks and learn from mistakes.

“Risk comes from not knowing what you are doing.” – Warren Buffett

Buffett has followed basic principles when looking at the risk factor. He prefers to avoid any investment opportunities that carry a catastrophe risk. He always tried to invest in high probability and low risk scenarios.

He has learned too from his mistakes. He made costly errors with U.S. Airways, ConocoPhillips (COP) and Energy Future Holdings. Like any successful leader, he has analyzed his mistakes and used this to make better decisions in the future. Unsuccessful leaders avoid failure at all costs.

“I make plenty of mistakes and I’ll make plenty more mistakes, too. That’s part of the game. You’ve just got to make sure that the right things overcome the wrong ones.” – Warren Buffett

10. Treat everyone equally.

“Personally, I really hope I can treat everyone equally. I think I have done a pretty good job so far but I know I can do it better.” – Warren Buffett

Nobody is left behind. Treating everybody equally and avoiding favoritism is the true mark of a leader. Buffett’s golden rule is about reaching out to the silent, competent workers.

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Let us know in the comments which quote/s have inspired you most.

Featured photo credit: Fortune The Most Powerful Women 2013/Fortune Live Media via flickr.com

More by this author

Robert Locke

Author of Ziger the Tiger Stories, a health enthusiast specializing in relationships, life improvement and mental health.

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Last Updated on January 24, 2020

10 Good Habits To Have in Life To Be More Successful

10 Good Habits To Have in Life To Be More Successful

Habits are behaviors and patterns that you showcase by default. They enable you to carry out crucial activities like taking a shower, brushing your teeth, getting prepared for work.

Interestingly, you follow this routine every day without considering them. Your unconscious habits create room for your brain to perform more advanced activities like problem-solving and choosing what book to read.

Everyone has habits, and several of those habits are activated every day. I would classify them into three groups:

  • The first category includes the habits that you hardly notice as they have become a major part of your life- such as brushing teeth or wearing clothes.
  • The second category comprises good habits to have to be more successful-like eating healthily, exercising your body and reading books.
  • The last group consists of those habits that are harmful-like procrastinating, smoking or overeating.

Habits are fundamental to becoming successful in life — or probably ending up a failure. Yet, as significant as habits are, some lack the knowledge of their capabilities.

Habits are default activities that you engage in without giving an afterthought. They are automatic behavioral or mental activities. They help you carry out some actions without exerting too much energy. They simplify your life.

Several people aspire to break bad habits. For instance, some people diet to stop overeating. They exercise to reduce obesity. Habits can hinder or impact your performance and productivity.

That’s why I would share 10 good habits to have to be more successful in life.

1. Begin Your Day with Meditation

I recommend mindful meditation early in the morning. This practice helps you to be in the present moment. Consequently, it enables you to be mindful of challenging situations during the day.

Different stressors may trigger as you go through the day; meditation helps you to remain calm before taking on the challenges.

Personally, it helps me to devise strategies and think about ideas. Meditation is a good habit to have if you want to be connected to what’s significant in your life.

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2. Be Grateful for What You Have

Sometimes, you waste time thinking of what’s not enough. You become immersed in those daunting challenges. However, challenges justify the presence of hope. When you have life, you have expectations. You will be free from challenges when you are six feet under. The only strategy you have to stop focusing on your problems is to focus on what you have.

Gratitude is a time-tested pathway to success, health, and happiness. It redirects your focus to what you have from what you lack. Here’s what James Clear does every day,[1]

“I say one thing I’m grateful for each day when I sit down to eat dinner.”

3. Smile

Can you pause and smile before you continue reading this?

Now here is what just happened based on research conducted by the Association for Psychological Science; you set a pace for living a happier life when you smile. A genuine smile or what’s called a Duchenne smile is a good habit to have if you want to find spiritual, emotional and mental peace of mind.[2]

Smiling induces the release of molecules that function towards fighting stress. The physiological state of your body determines the state of your mind. When you slouch or frown, your mind takes cues relating to unhappiness and depression. But, once you adjust yourself by putting up a smile, you begin to feel a new level of excitement and vibrancy.

Can you smile again?

4. Start Your Day with a Healthy Breakfast

Starting your day with a healthy breakfast is a good habit to have and forms a crucial part of your life. Nevertheless, about 31 million Americans skip their breakfast each day.[3]

If you are fed up hearing that breakfast is a crucial component of your day, you are only fighting the truth. If you want to become more successful, you need to ‘break your fast’ with healthy foods every morning.

This habit is not difficult to form if you usually rush out the door every single morning. You can wake up earlier to fix yourself a meal so you don’t break down during the day.

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Get inspired by these 20 Healthy Breakfast Choices That Will Save You Time.

5. Exercise Daily

One of the good habits to have is to exercise your body and muscles every day. You don’t have to run a marathon or lift a weight. You only need to engage in less strenuous activities that oxygenate your blood and inject endorphins in your body.

Jack Dorsey, the CEO of Twitter, classified exercise as a good habit to maximize his already jam-packed schedule.[4] He said,

‘I wake up by 5, meditate for 30 minutes, seven-minute workout times three, make coffee, and check-in.’

He said on Product Hunt that he follows this routine every day as it gives him a steady-state that empowers him to be more productive.

6. Manage Your Time as You Manage Your Finance

Another good habit is the act of managing your time effectively. This goes a long way to impact your achievement.

Time management is what separates the successful from the rest of the world as we all possess the same amount of time. How you leverage time determines your potential to succeed in life.

So how do you manage your time effectively?

Here’s Jack Dorsey’s recommendation in one of the Techonomy events;

“I accomplish effective time management by theming my days and practicing self-discipline. These themes help me handle distractions and interactions. If a request or task does not align with the theme for that day, I don’t do it. This sets a cadence for everyone in the company to deliver and evaluate their progress”.

And this is Dorsey’s weekly theme:[5]

  • Monday – Management
  • Tuesdays – Product
  • Wednesday – Marketing and growth
  • Thursdays – Developers and partnerships
  • Fridays – Culture and recruiting
  • Saturdays – Taking off
  • Sundays – Reflection, feedback, strategy, and preparing for Monday

No wonder he was able to run two companies when others were struggling with one job.

7. Set Daily Goals with Intentions

Everyone has goals. It may relate to business or personal life. The truth is, we’re all tending towards a particular direction or another. Nevertheless, while long-term goals can offer you direction, it’s your daily goals that you establish that help you develop short-term goals that are essential for your success.

Long-term goals may not give you the motivation you need to keep on. But when you implement your short-term milestones daily, you become fired up, and you can overcome the challenges that come with taking on bigger tasks.

Here’s the main truth:Successful people don’t set goals without establishing their intentions. According to Jennifer Cohen of Forbes,[6]

“What helps you to achieve your desired expectation is ensuring intentions accompany your daily goals.”

Be intentional about your daily goals!

8. Seek Inspiration

It is usually difficult to be inspired for a considerable length of time. Sometimes, you become discouraged and feel like giving up on your goals when things are not working out as intended.

A practical approach to stay on top of the situation is to inspire yourself each day. When you wake up in the morning after meditation, watch some motivational videos, and let the story of great leaders inspire you.

Establish what Anthony Robbins called the ‘hour of power.’ Determine how many minutes you spend but make it count. Inspiration is the fuel for achievement because when you can conceive it in your mind, you can accomplish it.

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Michal Solowow, an investor and the founder of Mitex, a construction company puts it this way,[7]

“The problems I encounter in everyday life motivates me to find solutions. This is a self-propelling mechanism. becoming a billionaire was never a motivating factor.”

9. Save Steadily, Invest with All Prudence

I can exhaust the good habits to have without talking about saving and investing. Most times, you overlook the significance of saving for the future when you are living in your present moment. According to CNBC, a $1000 emergency will propel several Americans into debt.[8]

However, it is not enough to save, and you must invest your fund and be wise with it. If you pay attention to this now, you will set yourself for a life of success in the future. Ensure you save at least six months in your emergency account so you can be prepared for any future emergency.

10. Budget and Track Your Spendings

Benjamin Franklin warned of taking the precaution of little expenses. He said,

“A small leak sinks a great ship.”

It is easy to discard little expenses, but the truth is they always add up. This happens when you fail to budget.

Budgeting is a good habit to have, which can impact your financial life significantly. The money you spend on extravagant lifestyles can be saved and invested in your future.

The Bottom Line

Endeavor to cultivate these good habits to have to become more successful as you journey through life. The quicker you cultivate them, the faster you achieve your goals.

More About Habits

Featured photo credit: Andrijana Bozic via unsplash.com

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Reference

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