10 Leadership Nuggets from Warren Buffet

Warren Buffet has long been a household name all over the world. And who wouldn’t admire him? He started his prowess at only 11 years old by selling newspapers; now, he is 84 years old, and is still working without giving any sign of retirement plans in the near future. And all this despite the fact that he has amassed an empire that is worth $40 billion. If that’s not enough, he has also promised to give 99% of his empire to charity. So really, what is not to love and admire about this man?

Moreover, Buffet takes the time to share everything that he has learned on the road to business success. He is even one of the most demanded speakers on the topic of leadership. Check out ten of the many leadership nuggets that Warren Buffet has shared with us through the years.

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

If you have ever seen Warren Buffet being interviewed, you will most definitely notice that he is very passionate about his job. He firmly believes that the passion that you have for your job impacts your performance at work, and ultimately gives you a strong competitive edge in the business. So when considering a career change, better follow his advice and go for a job that you can see yourself being passionate about.

2. 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

If you cannot explain something in a simple manner, then you do not really understand what you are trying to explain. This principle is akin to Buffet’s personal practice. He believes that to get your message across and ensure that everyone is on the same page, you must learn to communicate effectively. Get rid of the jargon. Go for simple words; fancy words are good to use, but if there are simpler words, then use these instead. What is important is that your point is clear and clearly understood.

Interestingly, did you know that Warren Buffet, just like most of us, feared public speaking? He even had to take some courses so that he could get over this fear! So, yes, go for communication that is clear and easy to understand, whether you’re speaking to your shareholders, or you’re just writing a regular email to your colleagues.

3. Choose 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

Aim higher. Do business with people who inspire you to become better in your field. Warren Buffet took time to canvas business associates who were talented and successful in their fields, and once he spotted them, he reached out to them and maintained communication with them, using their successful life stories as his own personal inspiration. Go for the guys who inspire you to become better, not the ones who drag you down.

4. Plan for your 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

Have a contingency plan for your business. Make sure that the people in waiting are indeed the right people. So when the time comes for you to leave the field, you are confident that your business – and ultimately, your legacy – is in good hands. In Warren Buffet’s case, the board of his company already has candidates to consider for the following positions: CEO, a non-executive and an investment manager.

Apart from that, look into grooming your successors to be as successful as you, if not more successful. Even the most successful businesses in the world use predictive models for the candidates in waiting, and these predictive models are aimed for at least the next five years. So, yes, gear up your staff, and provide them the skills development and education that they need to get there.

5. Never micro-manage.

“Hire well, manage little.” – Warren Buffet

You are not a good leader if you are not able to recognize and hire the talented ones in your field. In Warren Buffet’s experience, once he hires these talented ones, he seldom interferes with how they handle their work. He believes in the importance of empowering your people, to make them feel that you trust them to do their best work – so they do go out and exceed your expectations! So, never micro-manage if you want your people to give you the best possible results.

6. Strive to be patient.

“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

As uncommon as patience as a virtue comes, to be a good leader, you must constantly and consistently practice patience. Some things just really take time. So resist the pressure that you are feeling about your project right now, and be brave enough to see your project through to its successful end.

7. Transparency is always better.

“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

Your people will perform for you at their very best only if you are able to gain their trust and confidence – and the best way to do that is to always be transparent with them. The great thing about Warren Buffet is he is always transparent, even if being transparent can lead to financial losses. The next time you are faced with a dilemma or a financial boo-boo, just be honest with your employees. They will value you more for it.

8. Treat everybody 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

Leave no man behind. Avoid favoritism at all costs, and treat everyone equally and fairly. This is definitely a quality of a great leader – one that can make any leader unforgettable to their followers and successors. Buffet always followed this golden rule, which was to reach out to the quiet but competent workers. And for sure, he is able to inspire many of these silent workers into greatness.

9. Time not managed is time wasted.

“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

Time management is extremely important in any business – especially since it ensures that important tasks are prioritized. Time management also involves the art of saying “no” when absolutely necessary. Warren believes that by saying “no,” you are more able to spend your time doing what needs to be done. So forget about those unnecessary meetings and appointments. Learn to prioritize so you can do what needs to be done.

10. Take risks and learn from mistakes.

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

Not every venture can be successful; there are some that you are bound to lose. But Warren Buffet believes that taking risks is part of the game. Moreover, he believes that making mistakes from the risks that you take is perfectly fine, as long as the risks are calculated ones. So before you make a risky decision, you must have already weighed the pros and cons, and you must have prepared contingency and mitigation plans for anything bad that is bound to happen.

After all, Warren Buffet has also made several mistakes along the way. What sets him apart is how he analyzes these mistakes so that he can make better and more calculated decisions in the future. Bear in mind that by avoiding failure at all costs, you are actually on the road towards unsuccessful leadership.

What about you? Are you a follower of Warren Buffet's advice too? Which among them do you like best? Have you tried doing them? Do share your experiences in the comments below.

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About the Author

Jason Bettinger is the entrepreneurs, entrepreneur. Through experience of starting, running and selling 9 prior businesses (he's on his 10th), he does know a thing or two about what makes or breaks a business! You'll find him at the forefront of web innovation and digital marketing, teaching business owners how to leverage Social Media and Search Engine strategies in optimizing websites and online branding.

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