Warren Buffett, billionaire investor and chairman of Berkshire Hathaway, Omaha, Neb., is known for being a successful businessman and providing words of wisdom.
Inc. offers some of Buffett’s wisdom by sharing the following five simple principles that can help leaders and support success.
- Get rid of bad habits. Buffett has said: “I see people with these self-destructive behavior patterns. They really are entrapped by them.” Bad habits for leaders may include avoidance, micromanagement, impatience and unaccountability. Bad habits can get worse over time, and Buffett emphasized the importance of identifying bad habits early so they do less damage to your business and employees.
- Do not risk what you have for something you do not need. Buffett has seen businesses and individuals driven by greed risk stability in pursuit of gaining more. For example, this could apply to leaders who take on unnecessary debt or who are sacrificing company culture for short-term wins. Buffett said: “If you risk something that is important to you for something that is unimportant to you, it just doesn’t make sense. I don’t care if the odds you succeed are 99 to 1 or 1,000 to 1.”
- Learn from mistakes and improve. Buffett sees failure as an opportunity to learn, emphasizing humility and resilience. In his final shareholder letter, Buffett said: “Don’t beat yourself up over past mistakes—learn at least a little from them and move on. It is never too late to improve.” He said to “get the right heroes and copy them.”
- Choose colleagues and mentors wisely. Buffett believes in surrounding yourself with people who make you better. It is important to choose carefully because you will be affected and influenced by the people with whom you spend your time. 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.”
- Do what you love. Although sometimes viewed as idealistic, Buffett believes people do their best work when they enjoy what they are doing. People who stay in a role they resent because of money or security often will become dissatisfied and do not grow as leaders. Buffett said: “The people who are most successful are those who are doing what they love.”
