Advertising

10 Leadership Lessons That Warren Buffett Taught Us

Advertising
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.

Advertising

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.

Advertising

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.

Advertising

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.

15 Reasons Why Living in Norway Is Awesome 10 Proven Ways to Judge a Person’s Character 10 Scientifically Proven Ways To Stay Happy All The Time 10 Morning Habits Of Happy People 12 Ways to Work Smarter, Not Harder to Be More Productive

Trending in Productivity

1 5 Unexpected Places to Boost Your Productivity 2 7 Effective Ways To Motivate Employees in 2022 3 8 Time Management Strategies for Busy People 4 5 Ways to Manage Conflict in a Team Effectively 5 How to Use Travel Time Effectively

Read Next

Advertising
Advertising

Last Updated on January 27, 2022

5 Unexpected Places to Boost Your Productivity

Advertising
5 Unexpected Places to Boost Your Productivity

The environment of a typical office or a quiet library may sometimes lessen your productivity as the unchanging views fail to stimulate your senses and keep your brain running. If you are the kind that dislikes absolute silence or minimal noise when working, these unexpected places to work may boost your productivity level!

1. Coffee shops

Research has shown that an adequate amount of ambient noise stimulates your senses and keeps you alert. Where else better to find some chatter and clatter to boost your creative juices? Working in the coffee shop also guarantees something else: unlimited supplies of caffeine!

Caffeine wakes you up by fooling adenosine receptors and speeds transmitting activities up in your nerve cells.If you do decide to try this place out, make sure that your work computer is facing the coffee shop customers so you will be less likely to procrastinate or go to inappropriate sites because people are secretly watching you.

Advertising

If your workplace requires you to be in the office, try this website and/or phone app that provides you with sounds from coffee shops around the world. Want to work at a cafe in Paris? No problem, it’s just a button away.

2. Cafeterias

Similar to coffee shops, company cafeteria or food courts provide consistent noise and the smell of food. The aroma of food makes you look forward to your next break and should motivate you to complete your work.

The act of eating likewise keeps your brain alert and produces dopamine. But make sure only to snack and stay around 60% full so that each bite is rewarding and invigorating. Snacking every 90 minutes should keep your brain balanced enough to focus on the work at hand.

Advertising

3. Empty University Classrooms  

Whether or not you’re an university student, we have all been a student at some point in our lives. And when you’re in a classroom, your brain is primed to stay focused because you have been conditioned to concentrate in class. In comparison to your bedroom, where your brain is primed to relax, sleep and have fun, the environment of the classroom triggers your memory to stay alert (unless you never listened in class) and work.

If you do decide to try working in an empty university classroom, be sure to bring a studious friend. Once you see that your friend or coworker is working hard, you would feel guilty for procrastinate and be more competitive.

Ever heard of environmental context-dependent memory? Research has shown that environmental context influences the way we encode information. If you study in the same place you first learned the material, your chances of recalling the information are significantly increased. Use environmental cues to your advantage so you spend less time doing more work!

Advertising

4. Outdoors

Fresh air, sunlight, cool breeze. Talk about getting your vitamin Ds the natural way. A healthy body is crucial to being productive. If you have a porch, use it to maximize your productivity!

On a cool day, the crisp air is good for waking your brain up. If your work station is indoors and poorly ventilated, the build up of carbon dioxide will cause your brain to be less active, hence, less productive. Try to bring some work to a park nearby or an unsheltered town square where you are exposed to the sun. Fresh air will vitalize your brain and the warm sunlight will bring a smile to your face.

5. The Shower 

Many people experience their “Aha!” moments when they’re in the shower. Why is that? The hot water helps with circulation and improves blood flow to your brain, giving it more oxygen and nourishment to break down your work block.

Advertising

If you aren’t motivated to work or feeling bored, a good shower will not only open up your pores, but also give your brain a boost of energy. Keep a waterproof white board and markers in the washroom so you will never lose those wonderful ideas again!

Featured photo credit: Thomas Franke via unsplash.com

Read Next