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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

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Robert Locke

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Last Updated on October 15, 2018

8 Steps to Continuous Self Motivation Even During the Difficult Times

8 Steps to Continuous Self Motivation Even During the Difficult Times

Many of us find ourselves in motivational slumps that we have to work to get out of. Sometimes it’s like a continuous cycle where we are motivated for a period of time, fall out and then have to build things back up again.

A good way to be continuously self-motivated is to implement something like these 8 steps from Ian McKenzie.[1]

Keep a Positive Attitude

There’s is nothing more powerful for self-motivation than the right attitude. You can’t choose or control your circumstance, but you can choose your attitude towards your circumstances.

How I see this working is while you’re developing these mental steps, and utilizing them regularly, self-motivation will come naturally when you need it.

The key, for me, is hitting the final step to Share With Others. It can be somewhat addictive and self-motivating when you help others who are having trouble.

The Motivation Technique: My 8 Steps

I enjoyed Ian’s article but thought it could use some definition when it comes to trying to build a continuous drive of motivation. Here is a new list on how to self motivate:

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1. Start simple

Keep motivators around your work area – things that give you that initial spark to get going.

These motivators will be the Triggers that remind you to get going.

2. Keep good company

Make more regular encounters with positive and motivated people. This could be as simple as IM chats with peers or a quick discussion with a friend who likes sharing ideas.

Positive and motivated people are very different from the negative ones. They will help you grow and see opportunities during tough times.

Here’re more reasons why you should avoid negative people.

3. Keep learning

Read and try to take in everything you can. The more you learn, the more confident you become in starting projects.

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You can train your brain to crave lifelong learning with these tips.

4. See the good in bad

When encountering obstacles or challenging goals, you want to be in the habit of finding what works to get over them.

Here are 10 tips to make positive thinking easy.

5. Stop thinking

Just do. If you find motivation for a particular project lacking, try getting started on something else. Something trivial even, then you’ll develop the momentum to begin the more important stuff.

When you’re thinking and worrying about it too much, you’re just wasting time. These tried worry busting techniques can help you.

6. Know yourself

Keep notes on when your motivation sucks and when you feel like a superstar. There will be a pattern that, once you are aware of, you can work around and develop.

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Read for yourself how the magic of marking down your mood works.

7. Track your progress

Keep a tally or a progress bar for ongoing projects. When you see something growing, you will always want to nurture it.

Take a look at these 4 simple ways to track your progress so you have motivation to achieve your goals.

8. Help others

Share your ideas and help friends get motivated. Seeing others do well will motivate you to do the same. Write about your success and get feedback from readers.

Helping others actually helps yourself, here’s why.

What I would hope happens here is you will gradually develop certain skills that become motivational habits.

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Once you get to the stage where you are regularly helping others keep motivated – be it with a blog or talking with peers – you’ll find the cycle continuing where each facet of staying motivated is refined and developed.

Too Many Steps?

If you could only take one step? Just do it!

Once you get started on something, you’ll almost always just get into it and keep going. There will be times when you have to do things you really don’t want to: that’s where the other steps and tips from other writers come in handy.

However, the most important thing, that I think is worth repeating, is to just get started.

Get that momentum going and then when you need to, take Ian’s Step 7 and Take A Break. No one wants to work all the time!

Featured photo credit: Japheth Mast via unsplash.com

Reference

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