Ever wondered how Warren Buffett went from selling Coca-Cola bottles for a nickel as a seven-year-old in Omaha to sitting atop the Berkshire Hathaway empire with over $1,070 billion in assets?
There are three key habits that helped him get there, and they’re habits everyone can adopt.
1. Never Stop Learning
In Berkshire Hathaway's 50th annual letter to shareholders, the late Charlie Munger highlighted one of Buffett’s most important traits:
“Buffett’s decision to limit his activities to a few kinds and to maximize his attention to them, and to keep doing so for 50 years, was a lollapalooza.
Buffett succeeded for the same reason Roger Federer became good at tennis.
Buffett was, in effect, using the winning method of the famous basketball coach, John Wooden.”
Buffett learned what he was good at, stuck with it, and kept honing his skills.
Malcolm Gladwell, in his book Outliers, suggests that to become an expert, you need some inherent skill but also at least 10,000 hours of practice.
It’s not just about being good; it’s about the practice that makes you good.
Take Bill Gates, who spent countless nights learning to code, or The Beatles, who played in Hamburg bars for hours each day.
Similarly, Buffett once said:
“I insist on a lot of time being spent, almost every day, to just sit and think.
This is very uncommon in American business. I read and think.
So I do more reading and thinking, and make fewer impulse decisions, than most people in business. I do it because I like this kind of life.”
No matter where life takes you, remember this: consistent practice and continual learning are key to getting closer to your goals.
2. Patience Is the Key to Success
In today’s fast-paced world, it’s easy to get caught up in the rush.
Buffett’s patience is one of his most admirable qualities.
In 2003, he mentioned that among his largest holdings, the last time he changed his position in any was:
- Coca-Cola in 1994
- American Express in 1998
- Gillette in 1989
- Washington Post in 1973
- Moody’s in 2000
Brokers might not love him for it, but his patience pays off. In his 2010 letter to shareholders, Buffett said:
“We will need both good performance from our current businesses and more major acquisitions.
We’re prepared.
Our elephant gun has been reloaded, and my trigger finger is itchy.”
Despite having a cash pile, Buffett waits patiently for the right opportunity.
While quick decisions are sometimes necessary, more often than not, patience leads to better outcomes.
Whether it’s buying batteries on sale or buying the company that makes them, patience can make all the difference.
3. Give Credit Where Credit Is Due
Buffett is quick to praise those around him.
In 2009, he said of Ajit Jain, head of the Berkshire Hathaway Reinsurance Division:
“If Charlie, I, and Ajit are ever in a sinking boat – and you can only save one of us – swim to Ajit.”
In his 2013 letter to shareholders, Buffett praised Ted Weschler and Todd Combs, portfolio managers at Berkshire Hathaway:
“In a year in which most equity managers found it impossible to outperform the S&P 500, both Todd Combs and Ted Weschler handily did so. Each now runs a portfolio exceeding $7 billion. They’ve earned it.
I must again confess that their investments outperform the mine. (Charlie says I should add “by a lot.”) If such humiliating comparisons continue, I’ll have no choice but to cease talking about them.
Todd and Ted have also created significant value for you in several matters unrelated to their portfolio activities.
Their contributions are just beginning: Both men have Berkshire blood in their veins.”
And in 2005, he credited Tony Nicely, CEO of Geico:
“Credit Geico – and its brilliant CEO, Tony Nicely – for our stellar insurance results in a disaster-ridden year.… Last year, Geico gained market share, earned commendable profits, and strengthened its brand. If you have a new son or grandson in 2006, name him Tony.”
Buffett, worth $128 billion, understands the value of others’ work.
Recognizing and appreciating those who help us along the way is crucial for success.
Adopting these three habits – continuous learning, patience, and giving credit – can make a significant difference in your path to success.
Whether you're an investor or pursuing other goals, these principles will guide you toward a more fruitful journey.
