Advice of World's Richest Man --- WARREN BUFFET---Your Business Should Live by
His ideology
and approach to communication and management continue to influence many
businessman and investors to this day. While it’s universally recognized that
Buffett has exceptional investment acumen, his fearlessness and
willingness to go against traditional business norms have inspired many to
build an organization that does the same.
Here are three Buffett quotes your business
should live by:
1. “There seems to be some perverse human characteristic that likes to make
easy things difficult.”
Warren Buffett’s
laser focus on his areas of competence has been essential to his success. As he
says: “I’m no genius, but I’m smart in spots, and I stay around those spots.”
It’s very common,
especially amongst accomplished executives, to achieve a level of success then
branch out into other areas in an effort to expand their businesses. Though
Buffett has made his fortune in investing in several industries, he’s remained
focus on the areas he knows best. Put simply, he’s an expert in identifying the
most basic opportunities that show long-term potential and executing on them
flawlessly.
The best
business owners are great at determining their area of competence and
focusing on how they can capitalize on that competitive advantage, rather than
trying to do everything and solve unnecessarily complex problems.
2. “What’s nice about investing is you don’t have to swing at every pitch.”
Despite many
misconceptions, Buffett rarely invests but and when he does, he is in it for
the long haul. He’s always invested in companies that have a strong brand and a
personality with the right leaders driving them forward.
If you want your
business to succeed, think like Buffett: big and long term. Invest in your
brand, hone in on what you’d like to accomplish and stick with it.
3. “Be greedy when others are fearful, and be fearful when others are
greedy.”
This quote describes
Buffett’s strategy to a tee -- an aggressive market player when others
deem an investment unworthy. Think back to the salad oil scandal of
1963 when Anthony “Tino” De Angelis, a savvy conman from New Jersey,
discovered a way to exploit an American Express program that gave business
loans based on collateralized inventory. Through an elaborate system of
deception, De Angelis was able to obtain loans on an oil inventory greater that
the total national holdings combined. While everyone stood clear of AMEX stock,
Buffett did the opposite. He visited local businesses and observed
business owners continue to accept American Express Travelers Cheques and
consumers continue to use them. Contrary to virtually every investment expert
at the time, Buffett purchased more stock and established a 5 percent
stake in the company. It reportedly cost him $20 million at the time but
now 50 years later, it was obviously incredible foresight.
Whether you aspire
to run a multinational company or your local mom-and-pop store, this is an
important lesson to apply. Innovate and solve a problem rather than following
suit with the rest of the industry.
Apply these ideas
to your company’s operations and you’re bound to see a substantial improvement.
More importantly, you’ll feel liberated by your ability to confidently make
sound choices -- especially when you’re going against the grain and doing
what’s best for your business.
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