Four successful lessons billionaire Warren Buffett sent to Berkshire shareholders


Warren Buffett acquired Berkshire Hathaway in 1965, when it was a textile company about to go bankrupt. Today, Berkshire Hathaway becomes an investment empire with a market capitalization of more than US $ 500 billion.

Each year, he writes a letter to the company’s shareholders. Here are four tips for business success that the 88-year-old billionaire sent to his shareholders in his first letters, according to CNBC.

Degrees are not all

In a letter to shareholders in 1988, Buffett praised the performance of Berkshire Hathaway’s operations management team and emphasized the emphasis on his hiring experience. “Our experience with new graduates is not so great,” Buffett wrote.

“Their transcripts are always impressive and candidates always know what to say; but they often do not have a personal commitment to the company nor a general understanding of business. It is very difficult to teach new people the old skills “.

Do not do it all for the money

“We can get a bigger profit after tax by constantly switching between investments.”

There are many ways Berkshire Hathaway can make more money, Buffett wrote in a 1989 shareholder letter. But money is not everything. “We can get a bigger profit after tax by constantly switching between investments,” the investment legend wrote. But experience taught Buffett and his longtime partner, Charlie Munger, “not to do so, even if this means less profit.” “Our reason is simple. We find that great business relationships are so valuable that we want to maintain everything that has developed,” Buffett continued.

“With that in mind, we don’t think it would make sense to spend time with people we know would be interesting and admirable to go to people we don’t know, people with qualities. far below average. This is like being a slave to money – a big mistake in most situations and a madness if one is already rich. ”

Find ways to avoid major barriers, instead of trying to overcome them

According to Warren Buffett, there’s no need to try to solve a problem if you can find another way to avoid it. “After 25 years of buying and supervising countless companies, Charlie and I didn’t learn how to solve difficult business problems. What we learned was to avoid them,” Buffett wrote in a letter to shareholders in 1989.

“To some extent, we have succeeded, because we always focus on the barriers we can overcome, not because we have the ability to break down big barriers.”

Never had a good deal with a bad person

“After a few mistakes, I learned that only doing business with people I love, trust and admire,” Buffett wrote in his 1989 letter.

“As I mentioned before, this principle by itself does not guarantee success: A second-class textile factory or department store will not do well just because they have good managers. But he The owner or investor of a company will succeed if it is possible to partner with such people in the business. We cannot have a good deal with a bad person, “Buffett wrote.

Ngọc Trang
* Source: BizLive

.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *