Warren Buffett says 4 timeless principles create lifelong success, fulfillment, and happiness

Some of my favorite insights from Warren Buffett.

Warren Buffett [Photo: Getty Images]

For 60 years, people have read Warren Buffett’s annual Berkshire Hathaway shareholder letters to gain insights into his investment philosophies. Every year, thousands convened at Berkshire Hathaway’s annual meeting to gain insights from Buffett and his partner, the late Charlie Munger. Buffett has also done countless interviews over the years.

Winnowing all that advice down to four items isn’t an easy task, but this is my attempt.

Here’s Buffett on leadership, focus, the best investment you can make, and the true meaning of success.

Buffett on leadership

What model does Buffett use for managing people? A baseball batboy.

As Buffett wrote in his 2002 shareholder letter:

My managerial model is Eddie Bennett, who was a batboy. In 1919, at age 19, Eddie began his work with the Chicago White Sox, who that year went to the World Series. The next year, Eddie switched to the Brooklyn Dodgers, and they, too, won their league title. Our hero, however, smelled trouble. Changing boroughs, he joined the Yankees in 1921, and they promptly won their first pennant in history. Now Eddie settled in, shrewdly seeing what was coming. In the next seven years, the Yankees won five American League titles.What does this have to do with management? It’s simple — to be a winner, work with winners. In 1927, for example, Eddie received $700 for the one-eighth World Series share voted him by the legendary Yankee team of Ruth and Gehrig. This sum, which Eddie earned by working only four days (because New York swept the Series) was roughly equal to the full-year pay then earned by batboys.Eddie understood that how he lugged bats was unimportant; what counted instead was hooking up with the cream of those on the playing field. I’ve learned from Eddie. At Berkshire, I regularly hand bats to many of the heaviest hitters in American business.

My managerial model is Eddie Bennett, who was a batboy. In 1919, at age 19, Eddie began his work with the Chicago White Sox, who that year went to the World Series. The next year, Eddie switched to the Brooklyn Dodgers, and they, too, won their league title. Our hero, however, smelled trouble. Changing boroughs, he joined the Yankees in 1921, and they promptly won their first pennant in history. Now Eddie settled in, shrewdly seeing what was coming. In the next seven years, the Yankees won five American League titles.What does this have to do with management? It’s simple — to be a winner, work with winners. In 1927, for example, Eddie received $700 for the one-eighth World Series share voted him by the legendary Yankee team of Ruth and Gehrig. This sum, which Eddie earned by working only four days (because New York swept the Series) was roughly equal to the full-year pay then earned by batboys.Eddie understood that how he lugged bats was unimportant; what counted instead was hooking up with the cream of those on the playing field. I’ve learned from Eddie. At Berkshire, I regularly hand bats to many of the heaviest hitters in American business.

Buffett doesn’t just study companies to spot opportunities. He also works to identify companies with leaders capable of seizing, and then building on, those opportunities. 

Clearly, he’s a great manager, but more important, he’s a great identifier.

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