Best investment ever made: My marriage license. Who you marry will have more impact on your life than any other external event in your lifetime. It is hugely important who you marry – marry someone who will bring out the best in you.
On success: IQ does not equal success. Good grades does not equal success. Character, discipline and focus will equal success. You need to detach yourself from the heard and the views of other people.
On mistakes: If you can’t stand mistakes, you shouldn’t be in the game. Don’t berate yourself over mistakes, just get on with the game.
On debt: If you are smart enough, you don’t need debt. If you are dumb, then debt will always get you into trouble.
On Investing: Don’t need an IQ to invest, but do need the right temperament. If it is cheap, I will buy; if not, I will pass. Develop your circle of competence, and know how big that perimeter is. Invest with a strong ‘margin of safety.’ If a bird in the hand is worth 2 in the bush, how sure are you that there is in-fact 2 in the bush. How far away is it, and how will you get there? Is there a bush close by that has 3 birds in it?
On career: Why paint something you don’t like; paint a life that you want. Build something that you want to build. Major on character, discipline and focus.
On motivating: Bringing out the potential in people is the most rewarding thing you can do.
On politicians: He asks them “what are you for that your constituents are really against?” – this will reveal what they really believe.
On democracy: The problem with democracy is that elected officials will not rule for the future, but only for the present day.
On hiring staff: Hire someone who is not in it for the money, fame or reward and hire someone who is prepared to go into the fox hole with you and stay there in the tough times. Work with people you want to work with and be the kind of person that you would want to hang around with.
On strategy: Strategy really means ‘dumb.’ So ‘Strategic planning’ means ‘dumb planning’ and ‘strategic acquisition’ means ‘dumb deal’. We have no strategic planning at Berkshire Hathaway, we just look for great investments and aim to preserve our capital.
