In the business world Warren Buffett is general, emperor and ayatollah rolled into one. Rommel had his tanks, Augustus had his senators and Buffett has his stocks. The billionaire investor is one of the most capable men in the history of commerce and has had to employ exceptional leadership skills to achieve what he has done. Here are Warren Buffett’s tips on how to be a leader.
CULTIVATE A (GOOD) REPUTATION, As Buffett so candidly puts it; ‘It takes 20 years to build a reputation and five minutes to ruin it.’ Cultivating a reputation is hard to do – but maintaining one is even harder. By understanding that reputation is a life-long investment, you’ll find that you impress upon yourself the very highest of moral and business standards. This will ensure that you are well liked and respected throughout the business community.
BE OPEN ABOUT YOUR MISTAKES, Ask any top businessman and they’ll tell you that, despite their millions or billions, they made plenty of mistakes en route to the top – Buffett is no different saying; ‘I’ve made a lot of dumb decisions. It’s part of the game.’ By being open about the mistakes that he made, he is making the admission that, despite his great success, he is still human and still fallible.
COMMUNICATE IN LANGUAGE THAT CAN BE UNDERSTOOD, Buffett understands that not everybody is as well versed in the language of business as he – and so adjusts his jargon according to who he is conversing with. When he talks to his team leaders he speaks in one way and when he talks to shareholders of his various companies he talks in another way. He always tries to simplify – and never leaves anything complicated that could be made more simple.
TRUST IN YOUR OWN JUDGMENT , If you’re leading others, the chances are you’ll be pretty capable at what you do – and therefore you should have faith in yourself and trust in your judgement. In a letter to Berkshire Hathaway shareholders in 2011 Buffett said; ‘More than 98% of my net worth is in Berkshire stock… …Being so heavily concentrated in one stock defies conventional wisdom. But I’m fine with this arrangement.’ Buffett shows that whatever’s conventional or the status quo may not actually be right for you.
DISPLAY HUMILITY AND LIVE SIMPLY, Those who are serious tend not to be flash. Warren Buffett lives in the same house that he bought in 1958 for the grand sum of $31,500 and although he has since purchased a private jet and $4 million Californian seaside house – he hardly lives like one of the world’s richest men. By living life in a non-extravagant, simple way, you prove that you’re serious and show that you’re not on a pedestal above everybody else.
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