12 Key Decisions Warren Buffett Believes Define True Success: Your Essential Checklist

 


Warren Buffett is renowned for two things: his ability to make money and his wisdom in giving advice.


In his annual letter to Berkshire Hathaway shareholders last year, Buffett attributed his success over 58 years to "about a dozen truly good decisions – roughly one every five years."


While Buffett only listed a few of these decisions, after years of studying his shareholder letters and life, I've identified a framework inspired by Buffett that can guide anyone in making these kinds of impactful decisions.


Here’s a checklist of 12 life decisions that lead to success, following Buffett's example:


The Decision to Nurture Curiosity

Success often starts with curiosity, especially early in life. Buffett's journey began before he turned 10, sparked by two experiences: reading "One Thousand Ways to Make $1,000" from the Omaha public library repeatedly and touring the New York Stock Exchange with his father, fueling his interest in finance.


The Decision to Get Started

Curiosity must lead to action. Buffett's early ventures, from a paper route to selling Coca-Cola at a markup, demonstrate the importance of experimenting and executing. Remarkably, Buffett has saved every federal income tax return he filed, starting in 1944.


The Decision to Find Mentors

Nobody succeeds alone. Buffett’s first and most significant mentor was Benjamin Graham, his "investing hero." Buffett even chose to attend Columbia University because Graham was a professor there.


The Decision to Be Bold

Fortune favors the bold. One of Buffett's boldest early moves was visiting GEICO unannounced in 1951, after discovering that his mentor Graham was the chairman. This led to a four-hour lesson from Lorimer Davidson, who later became GEICO’s CEO. Eventually, Buffett's Berkshire Hathaway acquired GEICO.


The Decision to Be Healthy

"You only get one mind and one body, and it's got to last a lifetime," Buffett often advises. Despite his notorious diet, Buffett underscores the importance of taking care of one's health early on.


The Decision to Nurture Relationships

One of the key decisions Buffett highlighted was partnering with Charlie Munger, his long-time collaborator. Buffett also emphasizes the value of other key relationships, such as those with Thomas Murphy, former CEO of Capital Cities/ABC, and Chuck Feeney, a billionaire turned philanthropist.


The Decision to Plan for the Future

Recognizing that no one lives forever, Buffett has been transparent about his succession plan. In 2021, he announced Greg Abel, currently overseeing Berkshire Hathaway’s non-insurance operations, as his successor.


The Decision to Cut Your Losses

One of the hardest lessons in life is knowing when to move on from a bad investment, but it’s crucial for long-term success.

Post a Comment

0 Comments