On Saturday, May 3, businessman Warren Buffett announced that he will leave his year at the end of the year position as CEO Berkshire Hathaway, and will Take the Greg Abel position, current vice president.
The decision ends 60 years of career in the textile company that made a giant conglomerate valued in more than 1.16 billion dollars and will now serve as president of the Group Board of Directors.
I think the time has come for Greg to become the head of the company at the end of the year, “said Warren Buffett 94 years during the annual shareholders meeting.
Who is Warren Buffett?
Warren Buffett is one of the most successful investors worldwide and leadership symbol with purpose. He was born in Omaha, Nebraska, in 1930 and is known as the “Oracle of Omaha”.
As a child he showed interest in business, at 11 he bought his first actions. At 16 he already had entrepreneurial spirit because he sold sweets and distributed newspapers. However, its great jump would come with the acquisition of a textile company in decline; Berkshire Hathaway that became a giant conglomerate.
During the 60 years he has been at the head of the company, he has built a great reputation and a style of conscious leadershipHe believes that simplicity, in rational thinking and the importance of investing in what is understood. He lives in the same house he bought in 1958, drives modest cars and breakfast in McDonald’s.
Its principles, based on the patience, ethics and strategic thinkingthey have become a timeless guide for leaders, executives and, of course, entrepreneurs.
Next, we collect ten of their most valuable lessons and how to apply them on the way to undertake.
1. Invest in yourself rather than in anything else
Buffett has said on multiple occasions that the best investment can do is in itself. Learn to communicate clearly, to negotiate and make decisions With criteria they are skills that do not depend on the market, but that give dividends all their lives. For an entrepreneur, this implies spending time to form, read, look for mentors and learn from each experience.
“The more you learn, the more desire”It is one of its emblematic phrases.
2. Take care of your reputation as your most valuable asset
Credibility is not built overnight. Buffet says that “20 years are needed to build a reputation and five minutes to ruin it”. This means that each treatment, each decision and every message that communicates to its clients and collaborators must be aligned with the business values. In saturated markets, trust can be the only true competitive advantage.
-3. Think in the long term, even when the present is uncertain
Buffett does not get carried away by the euphoria of the short term or by momentary crises. Your investment philosophy is based on Keep calm, evaluate with depth and make decisions that generate sustained value.
In the entrepreneurial world, this translates into not pursuing immediate growth or virality, but to build a company that is profitable and relevant over time.
4. Just do business that you understand deeply
The tycoon avoids investing in companies whose business logic does not understand. This discipline has avoided expensive errors. For entrepreneurs it means Do not invest in sectors just for fashion or without having real market knowledge.
Before launching a product or service, it is essential to understand the needs of the client, the operating model, costs and margins.
5. Be austero, especially in the beginning
Despite being a billionaire, Buffett drives a modest car and has lived in the same house for decades. This austere approach also applies to entrepreneurs, especially in the early stages. Manage cash flow wellavoiding unnecessary expenses and prioritizing profitability on appearance can make the difference between surviving and breaking.
6. Surround yourself with full and more talented people than you
Buffet has said that they seek to work with people who have three qualities: intelligence, energy and integrity. But if the third is missing, the other two can be dangerous. That is why entrepreneurs need Form reliable, diverse and complementary equipmentto share the business vision and contribute more than one could only achieve.
7. Patience, a powerful strategy
In a world where immediacy is rewarded, Buffett continues to bet on patience as a competitive advantage. He has waited for years for the correct investments, and does not act impulsively. Employment also demands patiencebecause it takes time to validate the product, build a customer base and achieve profitability. Resisting without despair can be what keeps you standing when others fall.
8. Build a competitive advantage difficult to copy
One of Buffett’s favorite concepts is “moat” (defensive pit), a characteristic that protects a company from its competitorsbe it a solid brand, owner technology or a unique customer experience. Finding the MOAT means finding that differentiating element that makes customers choose them again and again.
9. Do not follow the current just for fear of staying behind
Buffett usually says: “Be fearful when others are greedy and greedy when others are fearful.” His philosophy has led him to make decisions contrary to consensus, but deeply analyzed. With this phase entrepreneurs can learn that Trends should not be followed only by fashion, but to have the courage to innovate, challenge what is established and bet on real solutions to specific problems.
10. EMPLOYEE, BUT LEARN FAST
Buffett Does not hide your mistakesstudy them and talk about them openly in the annual letters to the shareholders. Employment is, in essence, to make many times to right. The key is not to repeat the same mistakes, learn from each trip and adjust the strategy with humility and speed.
In an ecosystem where to undertake has become as challenging as exciting, Warren Buffett’s lessons are still valid. It is not just about making money, but Build companies that last, grow meaning and are guided by solid principles.
