warren buffet presentation

Warren Buffet -The Oracle of Omaha

Achievements

• Considered as most successful investor and money manager of the 20th century in a survey by the Carson Group

• Time's 100 Most Influential People, 2007

• World’s most Influential Global Thinker in Foreign Policy's 2010 report

 • In 2011, President Barack Obama awarded him

the Presidential Medal of Freedom Currently is ranked as the third most wealthiest person of the world

Buffet as a Person:

• Highly confident• Honesty• Simplicity and down to earth• Being Different• Praised Colleagues• Philanthropy

Leadership & Buffet

Level 5 leadership

Management styles

• He will not interfere with the running of the company.

• He will be responsible for hiring and setting the compensation of the top executive.

• Capital allocated to the business will have a price tag (a hurdle rate) attached.

Candor

• Buffett believes that a manager who confesses mistakes publicly is more likely to correct them

• Managers who discusses the failures of the company with shareholders are admirable

Leadership Traits

• Communicator• Humility• Trust worthy• Rational• Innovator• Figurehead• Entrepreneur• Philanthropist

Leadership Traits

• Communication: Warren Buffet is a skilled communicator in all aspects of life. Warren Buffet is experienced at positioning himself at the right place at the right time. Warren Buffet has the understanding of the people he is trying to reach and what he can and cannot hear from the people

• Figurehead: As a CEO of the Berkshire hathway, heuse to perform ceremonial and symbolic duties.

Leadership Traits

• Innovator: Innovative investors decipher future trends, spot likely winners by combining science(financials) with art (acuity and perception) and continuously mitigate risk.

• Entrepreneur: Warren Buffet's is a self empowered leader, because he is loyal, sets goals, plans a strategy for achievement, and stays committed until he accomplishes his purpose.

Leadership Traits

• Trustworthy: He buys the company with the intentions of keeping it forever. Usually, the management team of each company is the same staff that sold it

• Humility: In the year 2006, Warren's first annual donation to the Bill and Melinda Gates Foundation was$1.5 billion and the rest was divided among the four charities. He was the first person to make a donation better than Bill Gates, the richest man in the world.

Leadership Traits

• Rational: He told Fortune magazine that, A very rich person would leave his kids enough to do anything, but not enough to do nothing." (Harris, 2006) In other words, he wants his children to work earn their money and value hard work and smart choices.

• Philanthropist: He decided to donate 85% of his money to charity. Warren Buffet is not a huge spender. In fact, he still lives in the same house he bought 40 years ago.

House and Car!

Dotcom bubble

• But despite some criticism, Buffett had resisted any temptation to jump on the tech bandwagon.

• He had long avoided investing in any business he could not understand.

American Express

• Most investors believed, at that time, that American Express would be buried by the scandal.

• He believed that American Express would bounce back. He began to buy American Express stock

The 9/11 incident

• “The answer, sadly, is that I did—but I didn’t convert thought into action. I violated the Noah rule: Predicting rain doesn’t count; building arks does.

So, The take away..

• Level 5 leader (Humility + Will)• Sticks to the basics of economics• Good Communicator• American Express incident• 9/11 incident handling (General re Insurance)• Escape from Dotcom bubble.• Philanthropist.

Thank you!

• Rule No.1: Never lose money. • Rule No.2: Never forget rule

No.1.• The stock market is designed to

transfer money from the active to the patient.´• The most important quality for an

investor is temperament, not intellect.´• "Risk comes from not knowing

what you're doing."