Whether you’re talking about a fortune 500 company or a small business, a great leader can make a big difference not only in the company but also in the people working there and the customer experience. While no one will deny that Warren Buffett is a fantastic investor and a good businessman, most people probably don’t consider what a fantastic leader the Oracle of Omaha is as well.
A quick Google search will show you literally hundreds of Buffett quotes and articles, but today we’ll look at some of the lessons that are sprinkled throughout his many interviews, letters, and quotes…
1. Love what you do, and you’ll do it well
As a leader, everyone is going to be looking at you, and you’ll set the bar for success. However, if you do something that you love doing, then you’ll want to work on it and you’ll do it better than anyone else. As a leader, that enthusiasm will leak through to employees.
2. Learn how to communicate effectively
It’s important to know how to talk to people and convey your expectations and thoughts when you are a leader. After all, how else will they know what to expect or how to succeed? Warren Buffett does this exceptionally well whether it’s through interviews or his shareholder letters.
3. Be open and transparent
To be an effective leader, people have to trust you, and the best way to do that is to be open and transparent. Just take a look at any of the shareholder letters written by Buffett. In those, he uses common language to explain what is going on in the company and while he doesn’t give away everything, he is open enough that it’s easy to understand what he’s talking about and believe he knows what he’s doing.
4. Patience is a virtue
It’s important to be patient when you’re a leader as you must be able to evaluate for the long term. Warren Buffett doesn’t look at things from a year-to-year aspect, but instead on at least a five year basis. The fact of the matter is that sometimes it takes more than a year for real progress to be made.
5. Admit mistakes, and learn from them
Being humble is yet another way for leaders to gain the trust and goodwill of those below them. Admitting your mistakes and learning from them also allows for growth. Buffett frequently admits when he makes a mistake, and both he and his company are constantly reevaluating and adapting as a result.
6. Positivity is better than fear
Being optimistic is important, and the positivity that follows will help engender trust and make people more comfortable with your decisions. Buffett is very optimistic and has been quoted many times explaining how things aren’t as bad as they seem, whether talking about the stocks, the economy, or even politics.