Wisdom from the Oracle of Omaha

Warren Buffett, arguably the world’s greatest investor, when considering an investment tends to look at and stay within what he calls his “circle of competencies.”  He learned this concept from Thomas Watson, founder of IBM.  Watson said, essentially, “I don’t know everything but what I know I know.  And I tend to operate within my circle of competency.”

When Buffett first met fellow billionaire Bill Gates in 1991, he declined to invest in computer technology, specifically Intel and Microsoft.  He didn’t know computers, simple as that.  (He later invested heavily in Bill and Melinda Gates and their philanthropic ventures.)

Bill Gates knows computers.  Henry Ford knew cars.  Gene Simmons knows rock and roll branding.  Warren Buffett knows chewing gum, soft drinks, insurance and textiles, among other things.  These successful men stayed and stay within what they know.  And they profit doing so.

What are your circle of competencies?  What things do you know better than the average bear?  Buffett tells potential job seekers to seek a job they would do if money were no option.  Corollary to that he likens the résumé building approach to career development the equivalent of saving sex for old age.  It misses the point.

Here are some things to think about when evaluating your circle of competencies:

  • What do you find yourself thinking about and pursuing when off the clock?
  • What ignites your passion—what subjects and pursuits? Dead giveaway on that one is your body language.  Your eyes fire, your pulse increases, you get excited and it’s obvious to those who know you.
  • What do you read about that is not part of some school or work assignment? Same goes for viewing and listening.

Challenge:  Focus on what lights you up and genuinely interests you—whether the pursuit is popular or not.  Then start doing deep dives in these areas.  You’ll be surprised how far you can go with them.

 

Suggested Reading:

Buffett: The Making of an American Capitalist (Roger Lowenstein)

Tap Dancing to Work: Warren Buffett on Practically Everything, 1966-2013 (Carol J. Loomis)

 

Image Credit

Advertisements

Bill Gates on Self-Esteem

Bill Gates

“The world won’t care about your self-esteem. The world will
expect you to accomplish something BEFORE you feel good about
yourself.” (Bill Gates)

Image Credit

“You Can’t Outsmart the Work”

You Cant Outsmart the WorkJim Rohn is one of my favorite self-development teachers.  I’ve been mentored by him over the past few years through his writings and recorded seminars.  I have never met him.  He died in 2009 after a full life.

Some time ago, I heard him dispense this nugget, worthy of wrapping one’s head around:

“Make rest a necessity, not an objective.”

Now that’s a new and powerful way of highlighting the importance of working hard.

Rest is something we earn.  This sounds foreign to American ears.  We are used to the “standard” of a forty-hour work week.  But forty hours of labor over a seven day period—as enough to get ahead–is distinctly Western and recent.  Our grandparents didn’t think like this.

I’ve heard it said that if you’re only working forty hours a week, it’s not likely you’ll get ahead–certainly not as far ahead as your dreams, goals, and ambitions.

Even God worked six days out of seven when He created the cosmos.  He wasn’t done on Friday afternoon at 5:00.

I have family members who are doctors, attorneys, investment bankers, hedge fund managers, Federal officials, and much more.  They’ve all gotten where they’re at the old-fashioned way:  They worked their tails off.  Nobody handed any of them anything.

Here are just a few benefits that will return to you with greater effort and longer hours, as you create a life:

  • You will certainly grow in your chosen fields of vocation and avocation.
  • Your sense of accomplishment will increase as you tackle and master more skills and meet goals.
  • You will run far ahead of the pack simply because many, if not most, are content to put their expected time in, satisfied with “working their forty hours.”
  • Your earning potential will undoubtedly increase, especially if the extra effort is focused and you strive for greater levels of excellence at all to which you put your hands to.

This isn’t a paean of praise to workaholism, far from it.  But in a culture that lives for the weekend, for partying, for good times and leisure, one tends to get an unrealistic picture of what it takes to win at life and realize your full potential.  It’s simply a matter of adjusting your perspective to accord with reality.

So my advice is this:  See work and labor not as a curse, but as a blessing.  Some of the most successful people in recent memory got that way, in sizeable measure, because they love working:  Donald Trump, Gene Simmons, Jack Welch, Bill Gates, and Oprah Winfrey.  Look for lots of increases in many different ways as you likewise work harder toward fulfilling your destiny.

And, when you have striven and exerted and are tired, then rest.

You’ve earned it.

Image Credit

Factors In Success

outliers_gladwellLast year I read a remarkable book, Outliers: The Story of Success by Malcolm Gladwell.  I am stunned by the results of Gladwell’s investigation into the hidden causes of success.  It is one of the most fascinating and upsetting books I’ve read in a long time.  Upsetting in a good sense, that is.  It upsets commonly cherished ideas about how people attain success in life.

In his book The Road Less Traveled and Beyond, M. Scott Peck argues that one of the characteristics and problems of our age is what he calls simplism.  Simplistic thinking fails to take into account that life is complex.  There are many variables that make up the people we live with and the challenges of our time.  The rub is that the variables are not always apparent.  It takes probing, time, patience and labor, for thinking is work.  Really.

The strength of Gladwell’s work is the way he demonstrates that, for example, 1) Bill Gates was not just a computer genius who came on the scene in the 1970’s and through sheer brilliance became the richest living American, 2) Asians aren’t necessarily “better” at math than Westerners but are more patient and their numbers nomenclature more user-friendly, and 3) that some recent airline disasters have more to do with overarching cultural distinctions vis-à-vis authority and power distance rather than simple “pilot error.”

I’m not writing today’s post as a spoiler for Gladwell’s book.  You owe it to yourself to get your hands on it and read carefully.  When I finished the book, I was struck with the reality that I am far too quick to pass judgment on the issues of the day, on why some fail and some succeed, even on theological issues—the area that I’ve given the most attention to since the early 1980’s.  Rarely are all the facts and evidence on the surface.

We are all composites of the influences and environments in which we were raised and in which we now spend our lives.  We are not simply our genetic makeup, products of our DNA.  More often than not, there are hidden factors that figure into the success of some, the failure of others.  Timing often figures in as much as raw ability.  We can thank Malcolm Gladwell and those like him (Scott Peck, Geoff Colvin, etc.) for digging deeper and giving us the full picture.

Here are a few brainteasers with which to bait yourself:

  • What cultural and economic tides are coming in right now that I can make the most of?  In other words, can I discern the signs  and trends of the times?  My friend Christopher Hopper has written extensively on the emerging wave of self-publishing.  You can read about that here.  It most certainly will be a force in the literary world in the days to come.  But it needed a level playing field, courtesy of the World Wide Web, to function and in which to be established.
  • What current politically hot issue engages me the most and do I have solid, consistent thinking and evidence to support my position?  Democrats routinely chide pro-life evangelicals for being oxymoronic—at once militantly anti-abortion and also vehemently pro-war (or pro-death penalty).  Are the criticisms valid?
  • Am I patient enough to thoroughly research problems and find meaningful solutions? Peck again.  You must be patient and resist the urge for simplistic, easy answers.  Thinking is work.  Are you up to it?

Digest Gladwell’s book.  It is a very important contribution!

Image Credit

Passing The Torch

I just returned from a visit to a funeral home in a village about six miles away.  Good friends of ours lost a mother, mother-in-law and grandmother.  The fine lady who passed from this life to the next helped guide me in the direction of the woman of my dreams in the autumn of 1987.  Louise was a special person and will be deeply missed by those who knew and loved her.

I had the chance to chat with her grandson, a friend of mine and one of my former students.  Twelve years ago, I was his chemistry teacher.  Six years before that, his principal.

He’s done well in business and we discussed his newest business venture.  He’s facing the challenges of our present economic malaise but has his head up and I suspect he’ll continue to do well.

As I’ve reflected on our conversation, I’m challenged once about the importance of legacy and passing on what we’ve been given.

His father has done well in business and his mother, a very diligent lady in her own right, is talented in many skills, not least carpentry!  It is inspiring.  Father and mother have passed on a certain acuity and business sense to their four children.  They all appreciate the value of hard work, the importance of numbers and cash and the can-do that makes for success in business.

Luke and I discussed entrepreneur Richard Branson, something of a mentor and role model for him, and how he does business.  Branson, who among other things built and owns Virgin Airlines as well as a variety of other ventures, likes to do things big and right.  He’s been knighted by the British Empire and has gotten the attention of my friend.

One of the things we talked about is how those with significant wealth often feel a certain moral constraint to give back.  To see their ability and resources as a stewardship, something to be used for far larger ends than simple personal consumption.  John D. Rockefeller, Andrew Carnegie and Bill Gates all come to mind.  Rockefeller in particular viewed his wealth—and he was by far the wealthiest American that has ever lived—as a sacred trust.  He was very careful about the way in which he passed on and divested himself of his fortune.

He knew that he’d have to answer to God for his oversight of what he’d been given.  Perhaps that is the prime reason why he’d been trusted with so much, the product of a lot of foresight, hard work and perhaps some heavy-handed business practice.

Here’s the challenge:  What resources, skills or values have you been given?  How have you stewarded these important things?  And how have you or will you pass them on to your family, your friends and associates, and the world?

As a Christian, it is an article of faith that one day, after death, I will give account to my Creator for my stewardship—my life, my resources, my influence, my unique calling.

Are you prepared to give account?

Image Credit