What Bill Gates learnt from Warren BuffettEveryone knows they are friends. But this is the first time Gates has penned down the ways Buffetthas clearly influenced him. Lessons all of us could do with.Author : iFast Content TeamMicrosoft co-founder Bill Gates and Berkshire Hathaway chairman Warren Buffett have beenbuddies for over two decades. And Gates makes no bones about the fact that Buffett hasinfluenced him tremendously.Buffett even honed his bridge skills. Though Gates learned the game from his parents, he gotaddicted to bridge through Warren Buffett in the late 1990s.Last week Gates put up his first post on LinkedIn tilted Three things I’ve learned from WarrenBuffett.1. It’s not just about investingGates admits that it is only natural that the first thing people will learn from Buffett is how tothink about investing. But what he finds amazingly powerful is his framework for businessthinking.Gates first met Buffett at a dinner his mother put together. Gates was not too enthusiastic aboutmeeting this stock picker. But when Buffett threw him questions such as “Why can’t IBM dowhat Microsoft does?” and “Why has Microsoft been so profitable?” it opened Gates eyes torealize that Buffett thought about business in a much more profound way than he gave himcredit for.Gates lists down some classic Buffett parameters when analyzing a business: The company’s moat—its competitive advantage—and whether the moat is shrinking orgrowing The shareholder has to act as if he owns the entire business, looking at the future profitstream and deciding what it’s worth Investors must be willing to ignore the market rather than follow it, because you want totake advantage of the market’s mistakes—the companies that have been underpriced2. Use your platformA lot of business leaders write letters to their shareholders, but Buffett is justly famous for his.Gates was inspired to write his own annual letter about the foundation’s work after seeingBuffetts annual letter to Berkshire Hathaway shareholders, known for its mix of financial data,wisdom and humour.Gates openly admires the fact that Buffett’s frankness shines through in his criticism of stockoptions and derivatives. Neither is he afraid to take positions, like his stand on raising taxes onthe rich, that run counter to his self-interest.Apparently, Buffett was of tremendous help when setting up the foundation. Gates and Buffettdiscussed in detail the idea that philanthropy could be just as impactful in its own way as
software had been. Gates came away with the impression that Buffetts brilliant way of lookingat the world is just as useful in attacking poverty and disease as it is in building a business.To see the annual letters from Bill Gates for the Bill & Melinda Gates Foundation, click here.3. Know how valuable your time isNo matter how much money you have, you can’t buy more time. There are only 24 hours ineveryone’s day. Buffett has a keen sense of this. He doesn’t let his calendar get filled up withuseless meetings. On the other hand, he’s very generous with his time for the people he trusts.He gives his close advisers at Berkshire his phone number and is always accessible on hisphone.Gates is now part of the LinkedIn influencers program which debuted in the last quarterof 2012 as a way for the public to read insightful posts from people like Bill Gates,Richard Branson, Tony Robbins and Barack Obama.Heres why you should consider investing in mutual funds.To buy and sell mutual funds online, click here.Disclaimer: iFAST and/or its content and research team’s licensed representatives may own or have positions in the mutual fundsof any of the Asset Management Company mentioned or referred to in the article, and may from time to time add or dispose of, or bematerially interested in any such. This article is not to be construed as an offer or solicitation for the subscription, purchase or saleof any mutual fund. No investment decision should be taken without first viewing a mutual funds scheme information documentincluding statement of additional information. Any advice herein is made on a general basis and does not take into account thespecific investment objectives of the specific person or group of persons. Investors should seek for professional investment, tax, andlegal advice before making an investment or any other decision. Past performance and any forecast is not necessarily indicative ofthe future or likely performance of the mutual fund. The value of mutual funds and the income from them may fall as well as rise.Opinions expressed herein are subject to change without notice. Please read our disclaimer on the website. Please read ourdisclaimer in the website. Risk Factors: Mutual funds, like securities investments, are subject to market risks and there is noguarantee against loss in the Scheme or that the Scheme’s objectives will be achieved. As with any investment in securities, the NAVof the Units issued under the Scheme can go up or down depending on various factors and forces affecting capital markets. Pastperformance of the Sponsor/the AMC/the Mutual Fund does not indicate the future performance of the Scheme. The name of theScheme does not in any manner indicate the quality of the Scheme, its future prospects or returns. Please read the Statement ofAdditional Information and Scheme Information Document carefully before investing.