Advertising
Advertising

10 Powerful Lessons Everyone can Learn from Warren Buffett for Business Success

10 Powerful Lessons Everyone can Learn from Warren Buffett for Business Success

With an estimated net worth of $72 Billion, Warren Buffett is one of the most successful, wealthiest businessmen and investors of all time. There is no doubt that we can all learn more than a few things about doing business and making wealth from this remarkable billionaire, whose been acquiring, starting and growing businesses for longer than many of us have been alive.

His company, Berkshire Hathaway, owns and operates some of the largest corporations in the world, including Helzberg DiamondsFlightSafety International, and NetJets. And Buffett generously shares lessons he’s learnt along the way through his extensive writings and talks, and by the way he leads his life. Here are powerful lessons we can all learn from Buffett to succeed in business and in life today.

1. Do work that you love.

Success comes when you do what you love. Warren Buffet lives by this rule and urges us all to live by it too. When you do what you love and are passionate about it, he says, you’ll never work a day in your life.

“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?”

2. Don’t “thumb suck.”

Warren Buffett prides himself in making swift, well-informed decisions and acting on them just as fast. He deems any unnecessary dilly-dallying as “thumb sucking.” Do your research thoroughly, well in advance. Gather all the necessary information and act decisively. Say “No” if you have to.

Advertising

“The difference between successful people and really successful people is that really successful people say no to almost everything.”

3. Spell out the specifics of a deal beforehand.

Warren Buffett tells a story about when he was a young boy. His grandfather, Ernest, hired him and a friend to dig out the family grocery store after a blizzard. The boys spent five hours shovelling until they could barely straighten their frozen hands. Afterward, his grandfather gave the pair less than 90 cents to split. Buffett was horrified that he performed such backbreaking work only to earn pennies an hour.

Even when you are dealing with friends and relatives, have all the specifics of the deal spelt out beforehand, including your monetary benefits. Your bargaining leverage is always greatest before you begin a job—that’s when you have something to offer that the other party wants.

“I am a better investor because I am a businessman, and a better businessman because I am an investor.”

4. Assess the risk involved.

Think about the worst and best possible scenarios and promptly make the most rational, progressive decision. That’s basically the advice Buffet gave his son, Howie, when the FBI accused the younger Buffett of price-fixing in 1995. Howie quickly realized that the risks of staying in his then troubled company far outweighed any potential gains, and so he quit the next day. Assessing risks carefully helps you see where you are struggling and can guide you to make smarter decisions.

Advertising

“I don’t look to jump over seven-foot bars; I look around for one-foot bars that I can step over.”

5. Exercise vigilance over every expense and spending.

Warren Buffett is well-known for being frugal and encouraging others to do so. He’s lived in the same house he bought when he was 28 for a mere $31,500 to date. Being frugal and conservative with your spending helps you avoid waste. And when you avoid waste, you make your money work for you and save enough to invest for the future.

“If you buy things you do not need, soon you will have to sell things you need.”

6. Limit your borrowing and what you owe others.

Warren Buffet has never borrowed excessively, even when he was starting out in business. He says, “Nothing sedates rationality like large doses of effortless money.” He has always negotiated with creditors to pay what he can, and when he is debt-free, saved his money to invest. Living on handouts, loans and credit cards will not make you rich.

“I have pledged – to you, the rating agencies and myself – to always run Berkshire with more than ample cash. We never want to count on the kindness of strangers in order to meet tomorrow’s obligations. When forced to choose, I will not trade even a night’s sleep for the chance of extra profits.”

7. Reinvest your profits.

In high school, Warren Buffet and a friend bought a pinball machine and put it to work in a barbershop. With the money they earned, they bought more machines until they had eight of them in different shops. The friends later sold the venture and Mr. Buffett used his proceeds to buy stocks and the rest to start another business. By the time he was 26, he had amassed $174,000, which is equivalent to about 1.4 million in today’s value.

Look broadly for investment opportunities and reinvest like you have a single lifetime “punch card” with only 20 punches—make each one count. Even a small investment can generate great wealth if you are diligent enough to favor substance over form.

“I try to buy stock in businesses that are so wonderful that an idiot can run them. Because, sooner or later, one will.”

8. Judge yourself by your own standards.

Don’t base your decisions, successes or even happiness on what others say or do. Buffet notes: “You don’t have to swing at everything—you can wait for your pitch. The problem when you’re a money manager is that your fans keep yelling, ‘Swing, you bum!'” Instead of following the crowd, measure yourself by your “Inner Scorecard”—your own standards and not the world’s.

 “I would say the most satisfying thing actually is watching my three children each pick up on their own interests and work many more hours per week than most people that have jobs, and trying to intelligently give away that money in fields that they particularly care about.”

9. Be consistent and patient.

Warren Buffett says, “Time is the friend of the wonderful business, the enemy of the mediocre.” The long and rocky road to success holds many valuable lessons and makes victory that much sweeter. So, be patient and keep pressing on. Don’t obsess over quick results and instant gratification. Success doesn’t come overnight—not even for Warren Buffett.

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

10. Know when to quit.

Warren Buffet makes mistakes just like any one of us, but he learns from his mistakes and doesn’t repeat them. He recalls: “I bought a company in the mid-’90s called Dexter Shoe and paid $400 million for it. And it went to zero. And I gave about $400 million worth of Berkshire stock, which is probably now worth $400 billion. But I’ve made lots of dumb decisions. That’s part of the game.” He is, however, quick to add: “Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.”

Know when to walk away from a loss. And remember in businesses and in people, better quality businesses are more likely to grow and compound cash flow; low quality businesses often erode.

“You only have to do a very few things right in your life so long as you don’t do too many things wrong.”

*all quotes are from billionaire Warren Buffett

Featured photo credit: Fortune Live Media via flickr.com

More by this author

David K. William

David is a publisher and entrepreneur who tries to help professionals grow their business and careers, and gives advice for entrepreneurs.

25 Memory Exercises That Actually Help You Remember More 12 Simple Ways to Boost Your Confidence Right Now 10 Amazing Health Benefits Of Beer You Probably Never Knew 15 Funny Idioms You May Not Know (And What They Actually Mean) Great Leaders Remember to Offer These 10 Things All The Time

Trending in Productivity

1 2 Transformational Ways to Spark Your Creative Energy 2 How To Become Indistractable: 4 Powerful Tactics 3 The Pros and Cons of Being Self-Critical (And How to Strike a Balance) 4 How Not to Feel Overwhelmed at Work & Take Control of Your Day 5 How to Start Delegating Tasks Effectively (Step-by-Step Guide)

Read Next

Advertising
Advertising
Advertising

Last Updated on October 22, 2020

2 Transformational Ways to Spark Your Creative Energy

2 Transformational Ways to Spark Your Creative Energy

Good things come in twos: Peanut butter and jelly, Day and night, Fred Astaire and Ginger Rogers. The same is true for what sparks our creative energy: our thoughts and actions.

Creativity is an inside job as much as it is about a conducive schedule, physical environment, and supportive behaviors. By establishing the right internal and external landscape, creativity can blossom from the abstract to the concrete and we can have fun along the way.

Sparking creativity is all about setting up the right conditions so a spark is ignited and sustained. The sparks don’t fizzle out. They are allowed to grow and ripen.

Think of a garden. Intention alone will not produce the delicious red tomato nor will the readiest seed. That seed needs attention at its nascent stage and as it grows a stalk and produces fruit. If we want to enjoy more than one fruit, we keep at it, cultivating the plant and reaping multiple harvests.

Creativity lives in each of us like seeds in the earth or encapsulated in a nut. Seeds of ideas, concepts, designs, stories, images, and even ways of communicating that surprise and delight await activation.

By sparking our creative energy, we activate these unique seeds. Like snowflakes, they are of a moment and always without a match. The smallest sparks encourage even the smallest, most dormant seeds to sprout.

The good news is that our creative energy wishes to be sparked—to be invited to play. It wants to be our regular playmate.

Advertising

1. Be Childlike in Your Thoughts, Attitudes, and Approach

Being childlike in our thoughts, attitudes, and approach is an easy way to internally have our thoughts be gracious prolific gardeners to our creative energy. If we want it to come out and play and hang around as our regular companion, then let’s return to our 5-year-old selves.

Our childhood selves are naturally curious. We still have that curiosity! All we have to do is remind ourselves to get curious. We can do that by simply observing and being with what is in front of us instead of making up a story about what won’t work or why something can’t be done. So, it’s about cultivating curiosity instead of jumping into judgment.

Move Your Inner Judge to the Sidelines

When we get curious, creativity percolates and, ultimately, takes its place in the world. To give a hand in choosing curiosity over judgment, we can move the judge that also lives inside us to the sidelines. The judge squashes our creative urges, even when they are as small as sharing a point of view. It’s that pesky voice that causes us to doubt ourselves or worry about what others will think.

The judge is also risk-averse. The judge likes things to stay the same. Change makes the judge nervous.

Creativity is all about risk and changing things up. It needs risk, even failure, to be its naturally innovative, dynamic, impactful self. The judge likes to convince us failure is something to be avoided at all costs.

To move the judge to the sidelines and let curiosity reign, we can pay attention to who we are in conversation with and who is calling the shots.

Is it the voice of fear, doubt, or anxiety (the inner-critic—the judge’s boss)? Or is it the voice of wisdom, courage, strength, and non-attachment, and of course curiosity (the inner-leader)?

Advertising

We can easily tell the difference by how each makes us feel. The inner-critic depletes and slows us down, putting roadblocks in the way. The inner-leader energizes and a natural rhythm develops.

It’s all about who we spend time with. If we wish to exercise, we will seek out our friends who go to the gym or hike. If we want to lose some weight, we will opt to eat dinner with someone who prefers a healthy spot over fast food.

After getting curious, we can honor what our curiosity prompts us to do. The spark can do its job and a fire starts to glow when commitment enters. Our childhood selves were fully committed to being creative. That level of commitment is still something we are very capable of exercising!!

Again, we need to let go of the judge. We can ask ourselves, what do we want to commit to—negativity that depletes our creative energy, depth, and output, or the understanding that our thoughts and attitudes matter and that right thoughts and attitudes are the sparks that really let our creativity come alive?

Learn to Recall Your Childhood Self

To get in touch with that unabashedly committed childhood self, recall your childhood self. If you have a picture, pull one out. Keep it around so you can remember to activate that innate creative nature that was prominent then and wants to be prominent now and always.

Soak in the essence of that being. Commit to their commitment to brave and dogged trial and error because it is yours as well. You are that person.

Remember how tenacious you were when you wanted to build that sandcastle. You kept at it as the waves came in. You built with fury or reconfigured the walls. Also, remember that there was a willingness to fail since you were as invested in the process as well as the outcome—but less with the outcome. You were willing to experiment and start again. There was vitality—the main lifeline of your creative energy—instead of a rigid attachment.

Advertising

When you notice you are in conversation with your inner-critic or being held back by it, simply acknowledge, name it, and then switch to your inner-leader by taking a few good deep belly breaths, rubbing two fingertips together, or listening to ambient sounds in the background.

Physical movements shift our negative thoughts over to the positive domain of the inner-leader. As our judge continues to sit on the sidelines, our ability to quiet the inner-critic becomes stronger. We taste freedom. A simple taste emboldens us to say no again to the judge and yes to what makes our hearts and spirits sing—our creativity.

We begin to spark creativity to the point it no longer needs to be invited to play. It becomes our regular playmate—the younger sibling or the kid next door ready to have some fun, maybe even make some mischief by shaking things up.

When we align with our inner-leader and think and act from its promptings, creativity flows up and out with ease, as it needs to!

Letting those initial sparks generate a creativity fire that keeps burning is something we can all do! That’s the inside job.

2. Listen to Your Inner Leaders of Creative Energy

If we listen, our inner-leaders will let us know just what we need to set-up and do in our physical world to maximize that gorgeous, hungry creativity we now have flowing freely in us.

The seed has been unlocked! So, now what?

Advertising

To enable our creative energy to take its form and place outside of us, there needs to be spaciousness! Spaciousness in our physical worlds impacts our internal one. It lets the voice of the inner-leader be heard. It lets creativity have room to be sparked and acted upon.

With a little discipline, we can easily create spaciousness in our daily lives—spaciousness that will spark our creativity and let it take shape.

So, no matter who you are and what conditions help your creativity thrive, check-out these easy-to-implement basic suggestions:

  • Reduce or eliminate multi-tasking.
  • Say yes to what matters and what aligns with your big values and goals.
  • Say no to all else.
  • Say no again.
  • Schedule time in your calendar as you do with other things in your life to just be, to ponder, to let ideas percolate, and to create.
  • Spend time doing the things that bring out your creative energy. It could be walking, singing, or simply looking out the window.
  • Meditate.
  • Breathe—long breaths in and long breaths out through the nose.
  • Invite your body and heart into your experiences so your mind is a part of you and not all of you.
  • Try a new thing to spark your creativity. If you spend time running, try a different route. If running feels stale, cruise around a museum, or go for a bike ride.
  • Play a game. Indoors out or outside. Think of what makes you happy that you haven’t done in a while. Is it a physical game like badminton or cards? Maybe it’s storytelling? Play is creative, and it sparks the creative energy, too.
  • Spend time in the places that bring out your creativity. What spot in your home could be your spot for entering into that mode? Do you need to get out? Maybe a park bench is the right spot, with a book of poetry, or even nothing at all.
  • Spend time in nature. Nature brings us to a place of calm and awe and through that our creativity is easily sparked.

Final Thoughts

These are all habits—habits of mind and habits of doing. Experiment with what works for you. Have fun. If you give even 50% to altering your thoughts and actions, then you will begin to spark your creativity. It takes a lot of curiosity and commitment, but it can definitely be done.

Our innate creative energy is a deep source of all that we seek—joy, connection, renewal. It deserves and looks forward to the changes you will make that will let sparks fly and ignite!

More Tips to Spark Your Creative Energy

Featured photo credit: Kelly Sikkema via unsplash.com

Read Next