Leadership is the ability to inspire confidence in and support among the people who are needed to achieve organizational goals.
It is said to deal with change, inspiration, motivation & influence.
Leadership develops a vision and the strategies needed for the achievement of organizational goals.
What is leadership
Behaviors and Practices
Power and Politics
Team Work and Empowerment
Creative Problem Solving
Communication and Conflicts Resolution Skills
Learning and Development Orientation
To Facilitate Achieving Productivity Quality Satisfaction Leadership uses Appropriately
Tolerance for Frustration Emotional Stability Sense of Humor Self Confidence Strong Work Ethic Energetic Creativity Enthusiasm Empathy Honesty
Warren Edward Buffett
Warren Edward Buffett (born August 30, 1930, in Omaha, Nebraska) is an American investor, businessman and philanthropist. He is regarded as one of the world's greatest stock market investors, and is the largest shareholder and CEO of Berkshire Hathaway. With an estimated net worth of around US$62 billion, he was ranked by Forbes as the richest person in the world as of February 11, 2008.
In 2007, he was listed among Time 's 100 Most Influential People in The World.
Often called the "Oracle of Omaha," Buffett is noted for his adherence to the value investing philosophy and for his personal frugality despite his immense wealth. His 2006 annual salary was about $100,000. He lives in the same house in the central Dundee neighborhood of Omaha that he bought in 1958 for $31,500, today valued at around $700,000.
Buffett is also a noted philanthropist. In 2006, he announced a plan to give away his fortune to charity, with 83% of it going to the Bill & Melinda Gates Foundation.
He bought his first share at age 11 and he now regrets that he started too late!
“ Things were very cheap that time Encourage your children to invest”
He bought a small farm at age 14 with savings from delivering newspapers.
“ One could have bought many things with little savings,
Encourage your children to start some kind of business”
He still lives in the same small 3-bedroom house in mid-town Omaha , that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence.
“ Don't buy more than what you "really need" and encourage your children to do and think the same”.
He drives his own car everywhere and does not have a driver or security people around him.
“ You are what you are”
He never travels by private jet, although he owns the world's largest private jet company.
“ Always think how you can accomplish things economically”
His company, Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year. He never holds meetings or calls them on a regular basis.
“ Assign the right people to the right jobs”
He has given his CEO's only two rules.
Rule number 1 : do not lose any of your share holder's money.
Rule number 2 : Do not forget rule number 1.
“ Set goals and make sure people focus on them”
He does not socialize with the high society crowd. His past time after he gets home is to make himself some pop corn and watch Television.
“ Don't try to show off, just be your self and do what you enjoy doing”
Warren Buffett does not carry a cell phone, nor has a computer on his desk.
10.Bill Gates, met him for the first time only 5 years ago. Bill Gates did not think he had anything in common with Warren Buffett. So he had scheduled his meeting only for half hour. But when Gates met him, the meeting lasted for ten hours and Bill Gates became a devotee of Warren Buffett.
His advice to young people:
Money doesn't create man but it is the man who created money.
Don't do what others say, just listen them, but do what you feel good.
Don't go on brand name; just wear those things in which you feel comfortable.
After all it's your life then why give chance to others to rule our life."
Warren buffett – a Leader within
Warren Buffet is considered one of the greatest business leaders of our generation. He is practical, economical, and knows how to put money into good use.
That's why he became a financial genius and now owns the most successful financial company, Berkshire Hathaway Inc. The company's core business is insurance, but nowadays, Berkshire Hathaway has purchased a wide range of non- insurance businesses.
The stock market guru has qualified In this quality, which is the most required quality as a leader.
Mr. Buffett rightly said that:-
“ integrity is the bedrock characteristic of straight dealing”
“ If you lose your integrity, you lose everything.”
Warren Buffett’s ability to step up and make decisions, even if it's deciding only when consensus has been reached and it's time to act.
4. Take risk
Mr. Buffett has the courage to act in situations where results aren’t assured. He’s willing to risk failure.
This valuable trait protects Mr. Buffett from overreaching.
6. Emotional resonance
Buffett has the ability to grasp what motivates others and uses it to inspire them into action.
7. Build Teams
Buffett often creates productive teams that draw the best from people. He effectively coach teams in collaboration, consensus building, and conflict resolution.
Mr. Buffett is passionate about achieving his goals, this ability has helped him to lead.
He is a leader who believe in what he’s doing.
Dedication means spending whatever time and energy on a task is required to get the job done, Mr. Buffett truly believes in his dedication towards achieving his goals and objectives.
Mr. Buffett is magnanimous person who gives credit where it is due. He’s also gracious in defeat and allows others who are defeated to retain their dignity.
Leadership is crucial to any successful business and good leadership is what Warren Buffett is all about. This is what makes Warren Buffett a good business leader.
When Warren Buffett talks, people listen. Warren Buffett can send a message through an open door and does not have to push the message through a wall
On May 1, 1956, Warren Buffett rounded up seven limited partners [including his Sister Doris and Aunt Alice], raising $105,000 in the process. He put in $100 himself, officially creating the Buffett Associates, Ltd. Before the end of the year, he was managing around $300,000 in capital.
Over the course of the next five years, the Buffett partnerships racked up an impressive 251.0% profit, while the Dow was up only 74.3%. A somewhat-celebrity in his hometown, Warren never gave stock tips, despite constant requests from friends and strangers alike.
By 1962, the partnership had capital in excess of $7.2 million, of which a cool $1 million was Buffett's personal stake [he didn't charge a fee for the partnership - rather Warren was entitled to 1/4 of the profits above 4%]. He also had more than 90 limited partners across the United States. In one decisive move, he melded the partnerships into a single entity called "Buffett Partnerships Ltd.", upped the minimum investment to $100,000, and opened an office in Kiewit Plaza on Farnam.
Ten years after its founding, the Buffett Partnership assets were up more than 1,156%
What is Decision Making
Decision making can be regarded as an outcome of mental processes ( cognitive process ) leading to the selection of a course of action among several alternatives. Every decision making process produces a final choice . The output can be an action or an opinion.
It's the process of selecting from several choices, products or ideas, and then taking action in relation to this choice in order to bring about a desired result.
Making a decision implies that there are alternative choices to be considered, and in such a case we want not only to identify as many of these alternatives as possible but to choose the one that best fits with our goals, desires, lifestyle, values, and so on. Decision making is a nonlinear, recursive process. That is, most decisions are made by moving back and forth between the choice of criteria (the characteristics we want our choice to meet) and the identification of alternatives (the possibilities we can choose from among). The alternatives available influence the criteria we apply to them, and similarly the criteria we establish influence the alternatives we will consider.
Warren buffett – a Decision maker
What he thinks about decision making
No sensible decision can be made any longer without taking into account not only the world as it is, but the world as it will be. .
Making Effective decisions Factors:
Six c’ s of decision making
His decision style is a Thinker due to the tremendous amounts of detail that he personally reviews to make his investments.
The Buffett’s style “
At only six years old, Buffett purchased 6-packs of Coca Cola from his grandfather's grocery store for 25 cents and resold each of the bottles for a nickel - making a nice 5 cent profit. While other children his age were playing hopscotch and jacks, Warren was making money.
His first decision
At eleven years old, he purchased three shares of Cities Service Preferred at $38 per share for both himself and his older sister, Doris. Shortly after buying the stock, it fell to just over $27 per share. A frightened but resilient Warren held his shares until they rebounded to $40. He promptly sold them - a mistake he would soon come to regret. Cities Service shot up to $200. The experience taught him one of the basic lessons of investing;
“ patience is a virtue.”
On May 1, 1956, Warren Buffett rounded up seven limited partners [including his Sister Doris and Aunt Alice], raising $105,000 in the process. He put in $100 himself, officially creating the Buffett Associates, Ltd. Before the end of the year, he was managing around $300,000 in capital. Small, to say the least, but he had much bigger plans for that pool of money.
Buffett’s other decisions
Over the course of the next five years, the Buffett partnerships racked up an impressive 251.0% profit, while the Dow was up only 74.3%. A somewhat-celebrity in his hometown, Warren never gave stock tips, despite constant requests from friends and strangers alike. By 1962, the partnership had capital in excess of $7.2 million, of which a cool $1 million was Buffett's personal stake.
In 1970, Buffett named himself Chairman of the Board and for the first time, wrote the letter to the shareholders. That same year, the Chairman's capital allocation began to display his prudence; textile profits were a pitiful $45,000, while insurance and banking each brought in $2.1 and $2.6 million dollars.
Warren Buffett'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. Up to date, he is the greatest stockbroker of all-time.
Warren Buffett on…
I always knew I was going to be rich. I don’t think I ever doubted it for a minute.
Can you really explain to a fish what it's like to walk on land? One day on land is worth a thousand years of talking about it, and one day running a business has exactly the same kind of value.
Price is what you pay. Value is what you get.
I'll tell you why I like the cigarette business. It costs a penny to make. Sell it for a dollar. It's addictive. And there's fantastic brand loyalty.
A very rich person would leave his kids enough to do anything, but not enough to do nothing. In other words, he wants his children to work earn their money and value hard work and smart choices. It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently. “ “ “
We, the members of group 3, hereby conclude and hope that this presentation about one of the Guru’s of the Stock Market has inspired you and generated the feeling of dedication towards your work.
We would consider it as our fortune if we could perceive the different aspects and principles of life which are highlighted by Warren Buffett.
We would also like to thank Prof. Sheetal.
"The HAPPIEST people DONOT necessarily have the BEST of all.
They simply APPRECIATE what they find on their way”