Even in today’s economic climate, when so many investors and major companies are failing, Warren Buffett continues to be successful in all aspects of his life. Mary Buffett and David Clark have written the first book ever to take an in-depth look at Warren Buffett’s philosophies for personal and professional management — what they are, how they work, and how you can use them.
Warren Buffett read & reread Carnegie’s ‘How to Win Friends &
Influence People’ and memorized passages. It was his bible for dealing with people.
Choose companies with a durable
competitive advantage:
* Products/Services that never really
change.
* Cash rich & high profit margins.
* Unique product/service or low-cost
buyer & seller of a product/service that
the public consistently needs.
Qualities of a
good manager
Loyalty
Enthusiasm
Attitude
Discipline
Example
Respect
Scholarliness
Honesty
Integrity
Pride
Tests for identifying the best
companies:
* Per share earnings over a 10 year
period
* Absence or low levels of long term
debt
* Gross profit margin > 25%.
Learn to delegate.
Your employees are the experts.
Think cheerleader, not slave driver.
Let competent managers do their jobs.
Managers need to be hard working,
intelligent and above all, honest.
Don’t be afraid to go against the
herd. Have a strong internal locus of
control. Accept responsibility
for your failures and learn from your
mistakes.
Believe in your product/service. Find
others who are passionate too.
Love what
you do.
Hire people who
love what they do.
Be honest.
Be truthful about your mistakes and
learn from them.
Always ask whether a managerial
change is absolutely necessary.
Avoid making changes where
possible.
Have an eye for the long term. Plan for
opportunities and risks.
Be proactive.
Constantly manage costs. Get rid of
anything unnecessary.
If you want to get your way, start
your encounters with other people in
a friendly way. It’s the only way that
pays.
Develop the best in people by
appreciation and encouragement. Be
anxious to praise but not to criticize.
Praise is the gift that keeps on giving.
Give employees a
reputation to live
up to and they will
live up to it.
Ask questions
instead of giving
direct orders.
When taking issue with someone,
agree with them to win the person’s
trust, and then you can get them to
listen to your ideas.
Praise by name, criticize the
category. Make subtle suggestions
rather than direct criticism. If you
need to criticize, praise first.
When you want someone to do
something, stop thinking in terms of
what you want and start thinking in
terms of what they want.
Inducing the other person to come up
with the right idea is far more powerful
as a motivational tool than telling them
the right idea.