Leadership

Investment and Business Insights From Warren Buffett

The great minds in business are what lead the way for the new age entrepreneurs. Warren Buffett is one such entrepreneur who has all the practical wisdom and experience of business. The now 87 year old started on his investing career when he was only 11 years old. The business story that unfolded later is well, history.

What better way for an entrepreneur to gain insight on wisdom on investments other than hear him talk with another equally experienced entrepreneur and his business partner namely Charlie Munger. The Berkshire’s shareholders meeting in Omaha is where they were seen to be sharing insights on investments. For those who could catch a glimpse of it of course had the opportunity to hone their business skills with their discussion.

Here are the six important lessons that entrepreneurs can learn from Warren Buffett on Investment and his general business preference from the meeting:

1. Cryptocurrency:
The word cryptocurrency has everyone in the business world talking but not these two entrepreneurs. It is interesting to note that Warren Buffett and his Partner were very clear about their ideas on cryptocurrency which was nothing but pure disinterest and lack of any positivity towards the concept. Warren Buffett has said that “cryptocurrencies will come to bad endings.” It is interesting to note that when the business world is enamoured by everything that is remotely connected to Cryptocurrency the great entrepreneurs of the time are confident that it is just a financial bubble that would float only to burst in time. Quoting Munger, on Cryptocurrency, he said that to invest in cryptocurrency is “just dementia. It’s like somebody else is trading turds and you decide you can’t be left out.”

2. Experience Matters more than a Prestigious Degree:
Everyone who knows about Warren Buffett’s famous journey knows that he was rejected from Harvard Business School. He has held strong opinions about success and a college degree from his experience. He said in the shareholders meeting that he prefers someone who has experience more than the one who has a degree. He believes that success in investment comes from discipline and experience.

3. Investment Choices:
Who better than Warren Buffett to tell you entrepreneurs about what his investment choices are based on?
Well, you will be surprised to know that his investment choices are based on friendships. At an age where every entrepreneur is looking at the usual profit and other things that would give an investment potential Warren Buffett says that he bases his investment choices on friendships.
He was asked in the meeting why he favoured Apple Stock over Microsoft. He replied that “In the earlier years, it’s very clear, the answer is stupidity.” When he became close friends with Billionaire Bill Gates he decided to take it off completely. He said that “I try to stay away from a few things just totally because the inference would be drawn that we might have talked, I might have talked to somebody about something.”

4. Warren Buffett on Guns and Business:
While in the meeting Warren Buffett said that he was not aware of any Berkshire Hathaway subsidiaries about having any holdings in companies that make firearms. He said this while in conversation with New York Times reporter Andrew Ross Sorkin. Following this conversation he said that “I do not believe on imposing my political opinions on the activities of our businesses. If you get into which of our companies are pure and which ones aren’t pure, I think it will be very difficult.”

5. Investing in Amazon:
Amazon is the e-commerce giant that changed the whole way of commerce. E-commerce became popular because of this brand and people still look up to everything Amazon for everything. Any business man would love an association with this corporate giant but not Warren Buffett. The reason being Warren Buffett’s investment strategy does not accommodate the possibility of investing in something that is too good to be true. Amazon it seems falls in that category. He said that “I’ve watched Amazon from the start, and I think what Jeff Bezos has done is something close to a miracle,” he said. “The problem is that if I think something will be a miracle, I tend not to bet on it.”

Warren Buffett is sure to surprise everyone with his thoughts and business sense. While entrepreneurs follow the norm Warren Buffett seem to follow his own rules and make others wonder how he got that right.

6. Insight into Berkshire Hathaway without Buffett and Munger:
In the Berkshire Hathaway meeting someone asked Buffett what he thinks of a future of the company in someone else’s rein. Buffett and Munger are very much in the company and has no plans to leave in the immediate future. But this is a possibility that might have come across their minds as a businessman. Warren Buffett replied that he was not worried about it. He said that “The reputation belongs to Berkshire now.”. “For somebody that cares about a business we absolutely are the first call and will continue to be the first call.”

Reading through the response of Warren Buffett is sure to make any entrepreneur be ever more at awe with this business magnet. He seems to come from a completely different era, but his thoughts penetrate through even the most modern and young minds. It is impossible not to look up at him. The calm and the happiness that he brings around to wherever he goes is quite a motivation to entrepreneurs that you can be busy and completely immersed at work and still be calm and happy. It might seem to be a herculean task at the moment to many entrepreneurs but looking at Buffett sure makes it seem possible. The fact that he is successful makes being happy while at work even more justified. It all boils down to being passionate about what one does and following one’s heart completely. Warren Buffett’s business success seem to be based on these very foundations.

About the author

SPI Group

An integrated platform created to serve entrepreneurs and service providers. SPI engages with over 100,000 Entrepreneurs & Senior decision makers through a unique combination of cutting edge business magazines, high profile B2B summits and conferences, strategic alliances with Govt, business associations and government bodies. SPI also leverages the power of digital marketing and social media.

Leave a Comment