Mba 550 final project

Final Project Part II: Self-Assessment and Leadership Analysis of Warren Buffett
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MBA 550: Leading in an Organization
By: Kelly A. Giambra
Southern New Hampshire University
Module 9 July 24, 2016

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Abstract
The paper will present a leadership analysis of Warren Buffett, the CEO and largest
shareholder of Berkshire Hathaway, Inc. The specific elements that are covered include teams,
organizational vision, organizational culture, problem-solving, conflict management, and a
professional self-assessment. The section about teams analyzes how Warren Buffett structured
the organization of Berkshire Hathaway, and provides some best practices that were used to
organize teams. The sections on organizational vision and culture assesses Warren Buffett’s
leadership style of extreme autonomy and how this structures the culture of his organization.
Problem-solving and conflict management are covered in Sections IV and V, which includes some
examples of how Buffett handles problems and conflict at Berkshire Hathaway. Sections VI and
VII, conclude with my professional self-assessment using the top five strengths found as a result
of the Clifton StrengthFinder analysis tool.

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Introduction: Leadership Analysis of Warren Buffett
Warren Buffett is the CEO and largest shareholder of Berkshire Hathaway, Inc., a holding
company who owns subsidiaries of various types of businesses. Berkshire Hathaway invests
mainly in media assets, insurance, oil, and lower performing businesses with a competitive
advantage (Forbes, 2016). The Company owns several familiar companies such as Geico, Dairy
Queen, Fruit of the Loom, and has large investments in Wells Fargo, Fruit of the Loom, IBM, and
Coca-Cola (Forbes, 2016). In recent years, Buffett purchased hundreds of millions of stock in
Phillips 66, an energy firm. He has also teamed up with 3G Capital for additional investment deals
with Kraft Foods, Heinz, Burger King, and Tim Hortons (Forbes, 2016).
Warren Buffet was born in Omaha, Nebraska in 1930 and is approximately 85 years of
age. He is nicknamed and frequently referred to as the “Sage of Omaha” and the “Oracle of
Omaha” in the media (Bio, 2016). Buffett has an estimated net worth of approximately 66.4 billion
and has been known for both his philanthropy and very successful investment strategies. In 2016,
he was ranked by Forbes as being one of the top three billionaires and one of the top 13 most
powerful people in the United States (U.S.) (Forbes, 2016). He also had ownership in the company
Salomon Brothers, was a former director of Coca Cola, and held similar leadership roles at
Citigroup Global, Graham Holdings Company, and Gillette (Bio, 2016).
Warren Buffett’s Career Track
Warren Buffett began his career at the very young age of 11, where he found himself having
a natural talent for math, investments, finance, and business matters (Bio, 2016). Since his father
was a stockbroker, Buffett would often visit his workplace to help, which eventually led to his first
stock purchase of three shares of Cities Service Preferred (Bio, 2016). It was at that point in which
Buffett had learned his first lesson on the patience of investing (Bio, 2016). When the stock had

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initially plunged, Buffett waited for the stock to increase and then sold it. However, he later
regretted selling the stock because it increased to an even higher value.
When Buffett was only 13 years old, he began running two businesses. The first business
involved newspaper delivery, and the second business involved a horseracing tip sheet sales. In
high school, Buffett partnered in with a friend to purchase a pinball machine where they used
profits to buy other machines and then re-sell them for a profit (Bio, 2016). As a young adult, he
attended the University of Pennsylvania with a major in Business, and then later achieved a
Bachelor’s degree from the University of Nebraska. In 1951, Buffett attended the Columbia
University School of Business where he earned a Master’s degree (Bio, 2016).
Immediately out of graduate school, Buffett sold stocks for Buffett-Falk & Company and
then later worked as an analyst at Graham-Newham Corporation. In 1956, he formed a first
partnership, Buffett Partnership, Ltd, in Omaha, Nebraska. From that point on, Buffett became
very successful in identifying undervalued businesses to invest in for multi-million dollar profits
(Bio, 2016). Buffett first acquired stock in Berkshire Hathaway, Inc. in 1960 and then ended up
taking full control of the company only five years later. In 1969, Buffett closed the partnership
business in order to focus more on Berkshire Hathaway.
I. Teams and Warren Buffett
How Warren Buffett Structured the Organization of Berkshire Hathaway, Inc.
The organizational structure of Berkshire Hathaway, Inc. is considered very diverse with
many businesses that operate within several types of industries. The Company holds stocks in
many large and well known U.S. publically traded companies such as Coca-Coca, Kraft Heinz,
IBM, American Express, and Wells Fargo (Carpenter, 2015). Berkshire Hathaway also owns
several private companies with commonly known brand names such as Geico, the McLane
Company, and Burlington North Santa Fe (Carpenter, 2015). The Company’s headquarters are

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located in Omaha, Nebraska and consist of a team of about 24 employees who are responsible for
SEC filings and other administrative duties. According to Buffet: “they handle all of these business
tasks cheerfully and with efficiency, while making my life easy and pleasant” (Ro, 2014).
Warren Buffett’s Team Management Style
When it comes to team management, Buffett’s organization is uniquely based upon a “well
founded” reputation in the investment community (Larcker & Tayan, 2009). The operating
structure of Berkshire Hathaway is generally “decentralized” because the performance obligations
are placed under the control of the managers of its many subsidiaries, with little or no interference
from Buffett. Berkshire Hathaway is a holding company, which is “a type of entity that may own
either a portion or all of another company’s assets” (Gilani, 2016). Thus, the Company exists for
the main purpose of holding a percentage of the stock of a company and owns subsidiary
businesses as a part of its investment portfolio. Since holding companies consist of several
businesses, it would be difficult for Buffett to personally manage and control each team.
Warren Buffett and the Berkshire Hathaway Executive Team
Warren Buffett has been the Chairman, CEO, and President of Berkshire Hathaway Inc.
since 1970 (Bloomberg, 2016). He is also the Owner of IMC Group and the Manager of Burlington
Northern Sante Fe, LLC (Bloomberg, 2016). Buffett’s professional background consists of
experience with managing teams of both publically and privately traded companies. A majority
of the senior managers and directors of Berkshire Hathaway’s subsidiaries’ are also shareholders
of the businesses they manage. As a result, the team structure, decision-making, and operational
functions all fall under the direct management of these subsidiaries (Stern, n.d.). Buffett’s
immediate team consists of both a Board of Directors and “C-Suite” Executives, whom have strong
backgrounds in financing, investing, leadership, and other business strategies (Bloomberg, 2016).

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Buffett is also known for having a “laisse-faire” or hands-off management style where he
allows for various co-leaders and managers to have “extreme autonomy” when making decisions
(Stern, n.d.). The concept of laisse-fair involves a team’s completion of tasks or projects under
little supervision, so they are able to make decisions independently (Cheah, 2016). The leader
allows for managers to work on projects alone and only interferes if deemed necessary. According
to Buffett: “We tend to let our many subsidiaries operate on their own, without supervising and
monitoring them to any degree. Most managers use the independence we grant them magnificently,
by maintaining an owner-oriented attitude” (Stern, n.d.). Therefore, Buffett tends to invest in
companies that are already well organized, and keeps those managers in place since they are
already familiar with the business.
Evaluation of Best Practices Used by Warren Buffett to Develop the Executive Team
As a leader of Berkshire Hathaway, one of Buffett’s best practices has involved having a
“no nonsense” attitude and down-to-earth style of leadership (Forbes, 2016). With this in mind,
Buffett seeks out employees who are intelligent, have high levels of energy, and demonstrate
integrity. As an additional best practice, Buffett keeps the hiring levels at a minimum so that he
can free up more capital in order to invest in business growth. He also prefers to have board
members whom relate to and identify with their shareholders. Buffett does not believe in paying
excessive salaries for these directors, and does not carry liability insurance to protect the board
members (McGregor, 2015).
The board of Berkshire Hathaway consists of split roles of the CEO and Chairman, instead
of having one person who assumes both roles. The reason for this is that in the event that the CEO
needs to be replaced, it would not be as difficult if they were also the Chairman (McGregor, 2015).
Buffett believes that a company should not be led by a CEO who is “arrogant, bureaucratic, or

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complacent” because these leadership traits have been known to cause failure in some of the
strongest companies like General Motors, IBM, and Sears Roebuck (McGregor, 2015). He places
his trust in managers, does not micromanage, and treats employees the way he would like to be
treated. Buffet is known for being humble and also willingly admits to making mistakes, while
paying credit to others when credit is due (McGregor, 2015). Thus, recognition and team work is
important part of Berkshire Hathaway and Buffett’s leadership style.
Subsequently, the leader’s skills have helped to improve overall operations, structure, and
communication within Berkshire Hathaway. For one, the Company is small consisting of roughly
25 co-leaders responsible for overseeing the business. Virtually all of its operations remain within
the executives in charge of Berkshire Hathaway’s portfolio, along with Buffett and his long time
co-partner, Charlie Munger (Irwin, 2015). All of these leaders decide on how they should allocate
capital over the different potential investments (Irwin, 2015). In addition, Buffett’s reputation as
a leader has made Berkshire Hathaway one of the primary choices for businesses looking to sell
while leaving their company still intact (Irwin, 2015).
Warren Buffett and Team Management
The term team may be defined as “a group of individuals whom meet over a given period
of time to pursue a shared goal of completing a task or project” (AMA, 2014). The notion of
teamwork emphasizes groups working together to overcome barriers, find new opportunities,
improve productivity, and develop problem-solving skills (AMA,2014). Some common team
characteristics may include openness, acceptance, understanding of common goals, assessing
progress and results, and sharing trust (AMA, 2014). One of Buffett’s best practices in this regard
involves rewarding both the team and subsidiaries according their level of production (McAleenan,
2015). Buffett does not hassle the team for updates, and only requests that bad news be reported

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immediately so that the issue can be promptly addressed (McAleenan, 2015). The leader has
simulated the idea to his managers they are the owners of the business. Buffett believes this is a
best practice to consider when there are exceptional employees considered as indispensable to the
Company (McAleen, 2015).
In recent years, team structure has become a significant part of organizational dynamics,
and most businesses today use some form of team work (Morgeson, DeRue, & Karam, 2010). For
instance, a 2010 survey of upper-level managers, had revealed that 91 percent agreed that teams
are the key to organizational success (Morgeson, et.al, 2010). Buffett’s leadership style appears to
involve “team self-management” which is a more indirect form of teamwork, as his subsidiaries
generally manage themselves (Morgeson, et.al, 2010). Many theories surrounding self-managed
teams have shown that members who complete tasks and solve problems on their own typically
becomes stronger and more resilient (Morgeson, et.al, 2010).
Warren Buffett and the Three Dimensions of Team Development and Communication
The three dimensions of team development and communication are energy, engagement,
and exploration, all present in high performing teams like Berkshire Hathaway (Sorenson, n.d.).
Buffett tends to look for highly energetic managers to become a part of his team and encourages
both formal and informal communication (Rhee, 2013). He also engages his managers by
motivating them using financial and emotional rewards for jobs well done (Allan, 2014). This
exploration dimension typically occurs both at Buffett’s annual meetings with shareholders, and
on a monthly basis when managers submit their financial reports to the Berkshire headquarters
(Cheah, 2016).
II. Organizational Vision and Berkshire Hathaway, Inc.
How Warren Buffett Developedthe Strategic Plan for Berkshire Hathaway, Inc.

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Buffett’s strategic plan for Berkshire Hathaway consists of investing in companies that
have products or services which rarely change so they are easier to re-sell and manage (Buffett &
Clark, 2009). The leader tends to look for certain characteristics when identifying these types of
businesses. For one, Buffett manages and invests in businesses that spend less capital then what
they earn, such as brand name products like Coca-Cola. As a well-known company, Coca-Cola
does not usually over-spend on research and development or repurchasing new equipment to
develop new products. This allows for the same equipment to be reused over several years, so that
money can be saved to expand, increase capital for more internal growth, and provide better pay
to its company managers (Buffett & Clark, 2009).
Warren Buffett’s Management Roles, Functions, and Impact on Improvement
According Munger, “the Berkshire system is essential for success in management”
(Lowenstein, 2015). When it comes to management, Berkshire Hathaway tends to look for people
with “hands-on” experience in investing (Irwin, 2015). In addition, Buffett compensates these
managers according to their success at meeting performance goals and regardless of the
Company’s profits (Irwin, 2015). Buffett also emphasizes the importance of “capital allocation”,
and allows for managers to be autonomous in their decisions (Lowenstein, 2015). He is non-
bureaucratic, thinks on the short term, and does not offer earnings guidance, regular stock splits,
or stock options to employees (Lowenstein, 2015).
As a manager, Buffet typically pursues ownership in companies with certain “inherent
business economics”, who people already desire to work for so that the organization requires little
improvement (Buffet & Clark, 2009). Buffett also believes that the best companies to invest in
and have ownership in are the ones that offer their employees opportunities for advancement, job
security, and options to make more money from within (Buffett & Clark, 2009).

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The Strategic Direction of Berkshire Hathaway, Inc.
The strategic direction of Berkshire Hathaway consists of a course of action that leads the
business to achieve its specific goals and objectives. As a leader, Buffett establishes this by using
facts, analysis, intuition, and experience, in order to achieve the Company’s vision. The strategic
direction of Berkshire Hathaway is clearly stated in the Company’s 2015 letter to shareholders.
However, due to Buffett and Munger’s advanced ages, there has been some concern over the
Company’s succession plan when the two are no longer around (Chipmann, 2015). As Buffett
stated in his 2015 letter: “Charlie is 92, and I am 85. If we were partners with you in a small
business, and were in charge of running the place, you would want to look in occasionally to make
sure we hadn’t drifted off into la-la land (Berkshire Hathaway, 2016)”.
In contrast, a panel of speakers from Stanford University recently discussed the future of
Berkshire Hathaway. It was agreed that the Company’s organizational culture is likely to survive
past Buffett’s leadership (Chipmann, 2015). The panelists also agreed that Buffett’s embedment
of the three core values of integrity, autonomy, and permanence are likely to continue so long as
they have the right successor (Chipmann, 2015). Berkshire Hathaway’s revenues have continued
to grow which is a positive sign of the Company’s strategic direction. In 2015, the Company’s
total revenues increased by about 16 billion (Berkshire Hathaway, 2016). A significant part of the
increase was due to the Buffett’s increase in ownership interest of American Express, Coca-Cola,
IBM, and Wells Fargo (Berkshire Hathaway, 2016).
Permanence is another one of Berkshire Hathaway’s most important cultural values. The
Company currently employs over 300,000 people worldwide within 80+ subsidiaries and includes
the same 25 staff members at Berkshire’s Omaha headquarters. Buffett attributes this permanence
to efficiency because he only hires if needed and does not feel a need to restructure his workforce.

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In addition, Berkshire Hathaway has never sold a single one of its subsidiaries within its 50-year
history (Chipmann, 2015). As a result, the future of the Company requires for Buffett and
Munger’s successors to follow through with these values and continue on with Berkshire
Hathaway’s mission, vision, culture, and strategic direction.
The Organizational Vision and Mission of Berkshire Hathaway, Inc.
An organization’s vision statement may be defined as “a brief statement created to help an
organization clearly define its purpose and goals”, and is often accompanied with a mission
statement (Carpenter, Bauer, & Erdogan, 2016). A mission statement may be defined as “a
statement identifying an organization’s reason for being, as well as what it does to serve its
customers, employees, and shareholders” (Carpenter, et.al.). Remarkably, Berkshire Hathaway
does not have a formal vision or mission statement, which is highly uncommon in businesses
today. In fact, a recent study conducted by Bain and Company found that almost 90 percent of
firms surveyed have some form of mission and vision statement to which they base their
organization (Carpenter, et.al.).
Despite the Berkshire Hathaway’s lack thereof, Buffett is certainly a leader with a clear
vision. The leader often describes where industries are going, and then acquires those companies
with strong managers, to help carry out the goals and objectives of their subsidiaries. Buffett also
discusses the vision, goals, and investment strategies of Berkshire Hathaway every year in his
renowned letters to shareholders. As Buffett states in his 2015 letter, “to achieve our goals, we
emphasize the avoidance of bloat, by buying businesses such as PCC that have long been run by
cost-conscious and efficient managers” (Berkshire Hathaway, 2016). Thus, Buffett places a great
level of trust in his managers’ in having the knowledge and capabilities to shape the overall vision
of their own companies.

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Furthermore, as evidenced by Berkshire Hathaway’s continued growth, the lack of a formal
mission and vision statement does not appear to be hindering this Company in any way. Buffett
prefers to be efficient and run his organization using a non-bureaucratic structure. He states in his
2015 letter that the future of Berkshire Hathaway will be “to continue to operate with extreme,
almost unheard of decentralization” (Berkshire Hathaway, 2016). Considering this, there was no
mention of either he or Charlie Munger retiring anytime soon, even though both are ages 85 and
92 respectively. The two partners merely expect their successors to carry on Berkshire Hathaway’s
basic mission of improving earnings for their many subsidiaries, acquiring more profitable
companies, continuing growth for investees, and repurchasing Berkshire shares when available at
a discount (Berkshire Hathaway, 2016).
III. Organizational Culture of Berkshire Hathaway, Inc.
How Warren Buffett Influences Corporate Culture
Organizational culture may be defined as “the unified beliefs and values which exist within
an organization over a period of time and its members’ attitudes and behaviors that influence the
value of their work” (Tsai, 2011). The corporate culture of Berkshire Hathaway is strongly
influenced by Buffett’s own values. Hence, the Company stresses the importance of ethics,
honesty, integrity, longevity, and customer satisfaction within their culture (Larckner & Tayan,
2015). When choosing its directors, Berkshire Hathaway seeks out professionals who already
possess these similar values, as well as industry-based knowledge and a genuine interest in their
business (Corporate Governance, n.d.). The Company’s directors, officers, employees, and
subsidiaries all must adhere to its Code of Business Conduct and Ethics.
According to Buffett, “I want employees to ask themselves whether they are willing to
have any contemplated act appear the next day on the front page of the local paper” (Code of, n.d.).

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Nonetheless, a majority of Berkshire Hathaway’s subsidiaries’ CEOs strongly believe that the
organization’s culture is based upon maintaining a good reputation, running your business as if it’s
your own, and placing integrity as first and foremost (Larcker & Tayan, 2015). Ultimately, the
Berkshire system is based upon the philosophy that managers who are given complete and total
autonomy on the long-term will perform better.
In effect, a survey conducted on what it’s like to work for Berkshire Hathaway found that
most of its CEOs agreed their financial performance is much better than it would be if not owned
by Buffett (Larcker & Tayan, 2015). The reasons for this ranged from the advantage of being
autonomous, to brand value, financial strength, and Buffett’s long term investment strategy
(Larcker & Tayan, 2015). All in all, it is the managers of these subsidiaries that help create a
unique culture where behavior and performance expectations are the utmost importance. Since
Buffett is non-bureaucratic, he trusts these managers with such extreme autonomy since he
believes it promotes more accountability than it would if there were too much oversight.
IV. Problem-Solving
Problem-Solving and Conflict Management at Berkshire Hathaway, Inc.
Problem-solving and conflict management are a fundamental part of both everyday life and
business. The most important elements involve being able to recognize the problem and this may
range in complexity (Spaho, 2013). When problems are recognized, it is then possible for the
leader to come up with an appropriate strategy to solve it. It is the leader’s role to find the right
solution as well as implement processes that effectively manage conflict within his organization.
In addition, research has shown that problem-solving approaches to conflict management generally
result in improved satisfaction in short and long term goals and better solutions (Weitzmann &
Weitzmann, 2000).

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How Warren Buffett Manages Problems at Berkshire Hathaway, Inc.
At the organizational level, there are several types of approaches to managing conflict.
Warren Buffett typically addresses conflicts at Berkshire Hathaway simply by avoiding complex
business decisions. According to Buffett, “Charlie and I have not learned how to solve difficult
business problems. What we have learned is to avoid them” (Brown, 2014). The avoidant style of
conflict management is a conservative approach to problem-solving. The conservative method of
handling conflict “follows the belief that all conflict is negative and destructive so it should be
avoided” (Kaimenyi, 2014). This is common characteristic of a “laissez-fair” leader like Buffett,
since these leaders generally allow followers to solve problems on their own (Kaimenyi, 2014).
“Laissez-fair” leaders also tend to surround themselves with highly skilled, experienced, and
knowledgeable managers so they are capable of working un-supervised (Kaimenyi, 2014).
Furthermore, leaders who manage conflict through avoiding tend to be more passive and
will either distance themselves or minimize their problems. This style may be most appropriate
when problems are more trivial since it is likely that the leader cannot fully solve the problem
(Spaho, 2013). Buffett states that though on occasion Berkshire Hathaway may encounter a “larger
but solvable” problem, the Company has “done better by avoiding dragons than by slaying them”
(Brown, 2014). Buffett also learns from his mistakes and then develops strategies to prevent the
same problems from occurring in the future. As theory points out, in order to reduce conflict, it is
often necessary to identify all previous conflicts, what caused those problems, and how they were
solved in the past (Spaho, 2013).
Warren Buffett and Problem-Solving During the 2008 U.S. Financial Crisis
Some of Buffett’s greatest problem-solving skills occurred during the 2008 U.S. financial
crisis. One of Buffett’s most famous quotes during this time were to “Be fearful when others are

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greedy, and be greedy when others are fearful” (Das, 2013). Berkshire Hathaway was not only
able to survive the economic recession, but also continue to earn profits from it. When many
organizations were failing, Buffett handled the crisis with a strategy by “extending lifelines” to
a few blue chip companies whose market shares were down at the time (Das, 2013).
Blue chip companies are well known businesses that are less volatile, with good reputations that
can still profit even when the economy is bad. Thus, they are more reliable and likely to grow. By
2016, Berkshire Hathaway had profited approximately 10 billion (Das, 2013).
The fact that Buffett avoids risky investing in such blue chip companies is an example of
how he manages a crisis related financial problems at Berkshire Hathaway. According to the
textbook, a success factor of a leader in an organization is to be able to think strategically and see
the big picture (Dubrin, 2016). During a financial crisis, this skill is important as a leader since
many followers may be so distracted by the problem that they see no way out (Dubrin, 2016). As
Buffett stated, “By year-end, investors of all stripes were bloodied and confused, much as if they
were small birds that had strayed into a badminton game” (Koppenheffer, 2014). In Buffett’s 2008
annual letter to shareholders, the leader had also offered insight into what caused the financial
crisis and how to prevent significant losses on the long term (Koppenheffer, 2014).
V. Conflict Management
How Warren Buffett Manages Conflict at Berkshire Hathaway, Inc.
As an avoidant, Buffett prefers to defer his attention from managing conflict to trying to
prevent problems from occurring. One of his best solutions to this is by taking great care when
selecting CEOs so that strong performers are in place to withstand difficult times (Rhee, 2013).
Research has shown that solving conflicts of higher-level managers like CEOs have a negative
influence on organizational performance (Spaho, 2013). This is because it defers the leader from

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other important duties (Spaho, 2013). According to Buffett, “Outstanding CEOs do not require
much management or oversight from owners, though they can additionally benefit from a similarly
exceptional board” (Rhee, 2013). Essentially, the CEOs of Berkshire Hathaway’s various
subsidiaries are given simple expectations of running their company as if 1.) they are the only
owner; 2.) it is the only asset they own, and 3.) they have no intention of selling it (Rhee, 2013).
Buffett does not usually speak out publically if he disagrees with one of his CEOs
decisions. In addition, if Berkshire Hathaway receives criticism for any of its business practices,
Buffett will defend the Company. For instance, in 2014, Coca-Cola voting shareholders had
approved a compensation plan for its executives in which Buffett had opposed (Ioselevich, 2014).
He did not respond in the public, but did state at the Company’s annual meeting that though he did
oppose it, he would rather address his concerns directly with the CEO to avoid “going to war” with
a close business partner (Ioselvich, 2014). In addition, when Coca-Cola was criticized for having
unhealthy products for consumers, he diverted the topic to choice, in that consumers choose to
drink Coke products because it tastes good (Udland, 2016).
Warren Buffett and the 2008 Subprime Mortgage Crisis
Remarkably, the 2008 subprime mortgage crisis had little impact on Buffett’s Clayton
Homes, and he continued to make high risk, high cost mortgages without falling into debt or losing
profits (Haverkamp, 2008). At the time, this was almost unheard of since many banks, mortgage
lenders, and other investors suffered severe losses and legal ramifications. Berkshire Hathaway
had first acquired Clayton Homes in 2003 and is now the largest financer of mobile homes in the
U.S. (Haverkamp, 2008). Clayton Homes primarily lends to borrowers with poor credit and lower
income who are unable to afford a traditional home. Though in 2008, these subprime borrowers
were likely to default or foreclose on their mortgage, this was not the case with Clayton. Buffett

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was able to avoid the subprime problem conservatively, by not structuring a loan so that it would
be difficult to repay (Haverkamp, 2008).
On the contrary, Berkshire Hathaway did receive negative publicity when Clayton Homes
was accused of engaging in predatory lending (Baker, 2015). This conflicted with Buffett’s
portrayal of being a responsible lender by helping lower income borrowers fulfill the American
dream of owning a home (Baker, 2015). When Clayton Homes was first confronted with these
accusations, the Company’s spokeswomen failed to respond (Baker, 2015). This appeared to be
the appropriate response for the Company at the time. In leadership, one aspect of using avoidance
as a strategy here involves gathering information and analyzing the situation (Dubrin, 2016).
Buffett eventually responded to Berkshire’s shareholders in defense of Clayton Homes.
He stated that the claims of predatory lending were “misleading” and that “Clayton has behaved
very well” (Das, 2015). He then when on to present factual information to his shareholders in
order to support his claim. For instance, he addressed how Clayton’s default rate was only 3 percent
and most borrowers successfully pay off loans within a 20-year time frame. As Buffett stated: “It’s
true that manufactured housing hits the lower end of the market...the question is, can you lend
intelligently to people [so that they can continue] making those payments and keeping their
house?” In that regard, Clayton has been “exemplary” (Das, 2015).
VI. My Profession Self-Assessment Using the Clifton StrengthsFinder
As we see from the analysis of Warren Buffett, problem-solving and decision-making are
especially important leadership skills in everyday business. In addition, completing a self-
assessment can assist in determining a leader’s strengths and weaknesses when it comes to
managing problems and making decisions within their organization. One way of assessing these
qualities is through the usage of the Clifton StrengthsFinder assessment. The Clifton

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StrengthsFinder assessment was first developed by Dr. Donald O. Clifton, based upon his 40-year
study conducted on human strengths which identified 34 most common strengths within
individuals. The assessment has been extremely effective in helping people to both discover and
recognize their inner leadership talents (Strengths Dashboard, n.d.). The results of the Clifton
StrengthFinder assessment revealed my five strengths as: 1.) Input, 2.) Intellection, 3.) Achiever,
4.) Strategic, and 5.) Learner.
Strength Number One: Input
My number one strength found as a result of the StrengthsFinder assessment is that of
“input”. According to Gallup, a person who is talented in the area of input will generally possess
a strong desire to increase their knowledge base. These individuals have a tendency to collect and
archive all kinds of information such as ideas, facts, books, articles, and quotations (Gallup
Strengths Center, n.d.). Leaders with input strengths may often serve as experts or specialists
which are extremely necessary in complex industries (Schubring, 2014). They often tend to
acquire, compile, and file away information in the event that it is needed for the future. This is
important in succeeding in leadership, as strong input talents are required when making decisions
to help improve growth and performance of an organization.
Strength Number Two: Intellection
A second strength found as a result of the StrengthsFinder assessment is that of Intellection.
According to Gallup, individuals with strong intellection skills, enjoy thinking, constant mental
activity, and the exercising of their minds (Gallup Strengths Center, n.d.). Leaders with strong
intellect abilities are effective at solving problems, developing ideas, and understanding the
feelings of others. Individuals with strong intellection are also introspective so they are able to
reflect upon and ponder over current and past events. These traits are beneficial for a leader since

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they can serve as a “sounding board” to help team members find new ways to solve problems and
improve the quality of their work (Gallup Strengths Center, n.d.).
Strength Number Three: Achiever
A third strength found as a result of my StrengthsFinder assessment is that of an achiever.
According to Gallup, achievers have a strong desire to constantly attain goals and accomplish more
(Gallup Strengths Center, n.d.). Achievers also enjoy facing challenges and are motivated with
future goals and assignments while requiring little or no recognition. Achievers in leadership roles
are devoted to completing tasks, and have the inner drive and energy needed to push their team to
succeed (Gallup Strengths Center, n.d.). Therefore, having the achiever strength is useful in
decision-making when overcoming hurdles to growth, developing strategies needed to improve
the leader’s organization, while also saving time and money for the business.
Strength Number Four: Strategic
A fourth strength found as a result of the StrengthFinder assessment is that with the trait of
“Strategic” ability. According to Gallup, people who are exceptionally talented in the area of
strategy can quickly identify problems and issues (Gallup Strengths Center, n.d.). Strong strategic
talents are also useful in helping an organization sort through large amounts of data to find the best
possible route for success (Gallup Strengths Center, n.d.). This special perspective allows for them
to identify patterns and then envision the outcome of alternative, “What-if” scenarios (Gallup
Strengths Center, n.d.). This makes the leader very powerful in bringing forth plans for future
situations while being creative, imaginative, and persistent in the projects they work on. A leader
with this ability may quickly weigh in alternative paths to determine the best possible and most
efficient plan moving forward.
Strength Number Five: Learner

20
My fifth strength as a result of the StrengthFinder assessment involves the desire to learn
more and continuously improve. According to Gallup, individuals with strong learner talents are
consistently striving to learn more in order to maximize their skills (Gallup Strengths Center, n.d.).
Leaners value education and prefer the gaining of new knowledge since it increases their level of
competence. They tend to become inspired after learning new facts, studying new subjects, and
mastering their skills and abilities (Gallup Strengths Center, n.d.). This is a valuable strength for
leaders because they typically learn very quickly and present the new information to their
organization. The learner strength is especially helpful for leaders when making business
decisions that require a high level of competency.
VII. Conclusion
Self-Assessment Investigation in Comparison to Warren Buffet
In summary, this paper identified several of Warren Buffett’s leadership qualities which
have positively effected the strategic direction of Berkshire Hathaway, Inc. I have found that
virtually all of these leadership traits are somewhat similar to the outcome of my five strengths
found from the Clifton StrengthFinder assessment: 1.) Input; 2.) Intellection; 3.) Achiever; 4.)
Strategic; and 5.) Learner (Gallup Strengths, n.d.). Buffett utilizes input strengths as he frequently
shares knowledge and philosophies on life and investments to the public (Watts, 2016). Each year,
Buffett shares expertise in his annual letter to shareholders of Berkshire Hathaway which is a major
event for many investors (Watts, 2016).
As a leader with strong intellect, Buffett prefers to spend approximately 80 percent of the
day reading mostly annual reports of other companies’ which are often several hundred pages (Sao,
2014). Buffett is constantly “deep in thought” assessing different companies’ competitive
advantage to decide which stocks to invest in (Sao, 2014). As an achiever, Buffett’s high level of

21
intelligence and natural ability to invest has led to extreme success which continues on even at the
age of 85 (Forbes, 2016). This is one of Buffett’s greatest leadership strengths as he is frequently
referred to as a “super achiever” in the media (Forbes, 2016). This is also where my achiever
qualities are slightly different from Buffett, since my accomplishments are very different.
The fourth strength similar to Buffett as a result of my professional assessment is that of
“strategic” ability (Gallup Strengths, n.d.). As a leader, Buffett has proven to be very powerful in
strategic growth by not only bringing forth plans for future investments, but also by being
persistent in the projects that he works on. Buffett tends to use strategies that mainly use
“quantitative probability analysis” in which he has used since a young child (Sao, 2016). Buffett
also evolved his investment philosophies and over time went from buying and reselling
inexpensive companies, to buying larger competitive businesses at reasonable prices, while
holding onto them for longer or indefinite periods of time (Sao, 2014).
Lastly, a fifth strength that I found to be similar to Buffett involves the desire to “learn”
more and continuously improve (Gallup Strengths, n.d.). As a learner, Buffett consistently strives
to gain new information on investments in order to maximize returns for his organization. Buffett
is a “firm believer” that prior to investing, due diligence is necessary to learn about the company
before deciding to invest (Curtis, 2016). Along with this, Buffett believes that investing is not
always about choosing the best company, but also about minimizing risks while maximizing long
term outcome (Curtis, 2016).

22
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