Ten Leadership Lessons Every Leader Can Learn from Warren Buffett
Done by Gifford Thomas on LinkedIn and additional commentary by me, Val Campbell
Thanks for joining me! I think we all know that Warren Buffett has a serious following as a business leader, right? It's easy to understand why this guy is one of the wealthiest people in the world. He's a Wall Street legend, an investment legend, a master communicator, and he inspires people all over the world. So when Buffett speaks, people listen according to Robert Locke, who's written extensively about his business success and is in high demand as a speaker on leadership.
So here are ten leadership lessons every leader can learn from Warren Buffett, with some additional commentary:
Number one: He says love what you do.
How many of us really love what we do? Though many of us—I think like myself—have struggled with this over the years. I'm entrepreneurial-minded and have been since my 20s, but I can honestly say only now, at fifty-nine, I’ve found what I'm looking for. Steve Jobs said, "The only way to do great work is to love what you do, and if you haven't found it yet, keep looking. Don't settle." That's great advice, and my hope is that many of us really follow it.
Warren Buffett, in his wisdom, said, "Life is too short to spend time doing something you do not like. There comes a time when you ought to start doing what you want. Take a job that you love one that you will jump out of bed in the morning for." Humorously, he said, "If you think you're out of your mind if you keep taking jobs that you don't like because it will look good on your resume, isn't that a little like saving sex for your old age?" Good point.
Number two: Learn how to communicate effectively.
This, I think, really can't be understated—or overstated enough. This is a big one, especially if you're a leader, right? A leader has to communicate well, and a leader has to listen well. James Hume observed that "the art of communication is the language of leadership," and I would agree a hundred percent on this. Think about that one for a while.
Warren Buffett said, "You've got to be able to communicate in life, and it's enormously important. Schools, to some extent, underemphasize that. I probably agree there. If you can't communicate and talk to people and get your ideas across, you're giving up your potential." That's huge.
Number three: He says choose your business associates wisely.
I'd say, don’t get in with the wrong people, right? Jenna Bush Hager said, "Surround yourself with people who can help you grow and who can make you better." Right?
Warren Buffett said, "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." My additional thoughts are: Seek those who can challenge you and help you to grow and stretch as a leader. But this also takes you being a leader who's secure in yourself in order to do this—and many people aren’t.
Number four: Don’t micromanage.
Shouldn’t even have to talk about this, but I think this takes a true leader to be able to get the right people, allow them to do their job or fulfill their role, and let them do it. Let’s face it—how many of us like to be micromanaged? Always having someone looking over your shoulder or second-guessing your decisions? I don’t think most of us do.
So it’s been wisely said, "If you micromanage your team, you are toxic to your business." And unfortunately, that is all too true. Warren Buffett simply said, "Hire well, manage little." I like that—he’s a man of few words there.
Number five: Plan for the future.
Okay, leaders plan ahead. Leaders plan, but we plan ahead. Leaders also develop other leaders—okay? This should be what I call multipliers. Leaders multiply people.
Harvey Firestone stated, "The growth and development of people is the highest calling of leadership." And I don’t think he could be more right. Managers manage; leaders lead, and they grow other leaders.
Warren Buffett said in this relation, "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." I think more businesses should pay attention to that.
Number six: Transparency is highly appreciated.
Leaders need to be transparent. I can’t say that enough—and what goes with that is also honesty and integrity. The Dalai Lama said, "A lack of transparency results in distrust and a deep sense of insecurity." And he’s right.
Warren Buffett, in being transparent, said, "If anything, taxes for the lower middle class and maybe even the upper middle class should 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." Agree with him or disagree, he’s being transparent.
Number seven: Patience is a virtue.
It should be, anyway. I think people are very rushed and impatient here in the US—maybe around the world too. But we need to know: Success doesn’t happen overnight, right? In fact, true success, as it’s been said, is hard work. "Patience is a virtue when there is something worth waiting for." Think about that one.
Buffett added, "No matter how great the talents or efforts, some things just take time." And humorously, he said, "You can’t produce a baby in one month by getting nine women pregnant." No, you certainly can’t. We’ll leave that one there.
Number eight: Manage your time wisely.
Right? We’ve got to redeem the time, for it’s short. Leaders need to manage their time wisely—that kind of should go without saying. We all know there’s only 24 hours in a day.
Again, from Steve Jobs: "It’s only by saying no that you can concentrate on the things that are really important." He’s absolutely right—you’ve got to know how to say no.
Warren Buffett added, "You’ve got to keep control of your time, and you can’t unless you say no. You can’t let people set your agenda in life." And I would add: Leaders determine and manage their schedule. They don’t allow others to manage their time. That doesn’t mean we don’t take input, but we control our own schedules.
Number nine: Be prepared to take risks and learn from mistakes.
Wow. Failure is part of success, but it’s not final. Leaders view failure as an opportunity to learn—and as long as we fail forward, we’re okay.
The famous author J.K. Rowling said, "It’s impossible to live without failing at something, unless you live so cautiously that you might as well not have lived at all—in which case, you fail by default." And that’s sad but true.
Buffett simply added, "Risk comes from not knowing what you’re doing." So as leaders, let’s know what we’re doing. Let’s not just risk—let’s take informed decisions.
Number ten: Treat everyone equally.
It simply shouldn’t have to be talked about, but I’d say: Show respect to all. It’s been wisely said, "People don’t care how much you know until they know how much you care." And no one could be a great leader unless they genuinely care about the success of each person on their team. Unfortunately, this doesn’t happen all the time.
Personally, Warren Buffett said, "I really hope I can treat everyone equally. I think I’ve done a pretty good job so far, but I know I can do better." And that’s honesty—showing he cares and he’s got room to grow. I think that’s awesome.
I hope you enjoyed this segment! If you liked this or got value from it, please hit the vote button. I’ll provide some contact information for subscribing to my social media sites. Join me next time for a new (but old) series, we’ll be going through John Maxwell’s Thinking for a Change. Have a great Saturday! Bye-bye!
