Warren Edward
Buffett, most successful investor of the 20th century. Buffett is the
chairman, CEO and
largest shareholder of Berkshire, and consistently
ranked among the world's wealthiest people. Here are the
main three lessons to be learnt from Warren Buffet.
1.It’s not about
investing
From his amazing track record, first thing to learn from Warren Buffet is how to think about
investing. But he has a whole framework for business thinking that is very
powerful, but this is where a lot of people stop and miss the fact.
To explain, here is an example of how Bill Gates learnt from Warren
Buffet.
Bill Gates thought, “Why would I want to meet this guy who picks
stocks?” he just used various market-related things like volume, or how the price
had changed over time to make his decisions. But when they started talking that
day, Warren didn’t ask about any of those things. Instead he started asking big
questions about the fundamentals of our business. “Why can’t IBM do what
Microsoft does? Why has Microsoft been so profitable?” That’s when Bill gates
realized he thought about business in a much more profound way than I’d give
credit for.
2.Platform to be used
Many business leaders write letters to their shareholders, but
Warren is justly famous for his. Partly because of his natural good humor also partly
because people think it will help them invest better in which they’re right.
But it’s also because he’s been willing to speak frankly and criticize things
like stock options and financial derivatives. He’s not afraid to take
positions, like his stand on raising taxes on the rich that run counter to his
self-interest. Warren inspires everybody to write own annual letters.
3.Value your time
You can’t buy time be it how much ever money you have. Warren has a
keen sense of this. He never let his calendar get filled up with useless
meetings. On the same way he is
very kind to the people he trusts and allocates a lot of time for them. Although Warren makes a point of meeting with dozens of university
classes every year, not many people get to ask him for advice on a regular
basis.
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