Lessons From Warren Buffett: Key Takeaways on Management, Markets, and Mindset

Warren Buffett to Retire As CEO of Berkshire Hathaway 

When a person lives to the wise age of 94 and accumulates a networth of $168B, people tend to think he has some important things to say.  Nearly 20,000 Berkshire shareholders gathered in Omaha Nebraska on May 3rd to hear the resident Oracle speak live.  The annual tableau is something to behold.  Thankfully there’s YouTube.  

What does the 5th richest man in the world know about regular living?  As it turns out, quite a bit.  It can be easy to dismiss the musings of a billionaire as disconnected and not applicable to the life of a plebian, but Warren Buffet should not be ignored.  Not unless you are allergic to sagacious elements.  

Here are just a few of the takeaways we garnered from tuning in:

• Buffett has served under 5 managers during his life and he admired them all - he did not suffer people he didn’t respect. 
• He maintains a keen awareness of the time he has left and invests it with judiciousness 
• The sillier people get (in the market), the better the opportunity. 
• Market volatility is nothing to worry about.  Wouldn’t bother him if Berkshire dropped by 50% and would consider it a fantastic opportunity.
• Read every book about investing available to him in the library as a child, discovering his talents and investing at an early age.
• It’s difficult to take the position that people get what they deserve in life.  But American society manages to get closer to this ideal than anywhere else.  
• Patience is an important trait for prudent investing. 
• Most of the time, you do not have an edge and you will only have a handful of opportunities in life where that’s not the case - best not to miss those. 

For more than 4 hours, the 94 year-old CEO spit wisdom from his unpretentious throne, proving once again why he’s America’s most respectable rich guy for a reason.  He dashed the dreams of a few admirers, hoping to catch the corner of his slipstream by shortcut.  

Then he dropped a bomb announcing his retirement at year end.  While the stock initially dropped in response, the transition will likely be written about as exemplary in future business textbooks. 

You don’t have to mirror Warren’s success to set yourself up for a meaningful life.  He is a wonderful creation of auspicious birthright, talent, timing and obsession.  A product of his time that cannot be replicated.  

Charlie Munger, Warren’s late friend and longtime business was once asked something to the effect of, “Mr. Munger, how can I be a successful investor like you?”.  Munger’s response was, in a matter of words, “Well, I can tell you what I wasn’t doing.  I wasn’t standing around asking people like me how to do it.”  

Both hilarious and accurate.  I can see why he and Warren were successful and best friends.  

Live your life to the best of your ability by taking every opportunity given you.  Soak up the abundant wisdom freely given from the people you admire.  It may just equip you to see your path more clearly.  

Hopefully this episode can give you just a little bit of that as we discuss the life and success of Warren Buffett.  

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About your Hosts 

Ben Jones, CFP® 

Managing Director, National Wealth Management Group 

www.nwmgadvisors.com  

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