1. “Warren Buffett and the Business
of Life”
Leadership Biography
Total Leadership
Spring 2013
George Schultz

2. The Real Warren Buffett…
“I offer you the real Warren Buffett. A manger of capital. And a
leader of people.” - James O’Loughlin
 Born in 1930 (currently 82) in Omaha, Nebraska – two siblings
 Father (Howard Buffett) was US Representative
 Attended Wharton before transferring to University of Nebraska–Lincoln. Received
MBA from Columbia Business School.
 Joined Graham-Newman (1954-56) to work for his idol, Ben Graham.
 Moved back to Omaha to start the Buffett Partnership (1956-1969)
 Unintentionally took over Berkshire Hathaway Inc. (“BRK”), a textile
manufacturer, in 1970. Became CEO and Chairman. Later partnered with friend
Charlie Munger.
 Through investments (both public and private) Buffett grew BRK into a $250 billion
company…earning the nickname, “The Oracle of Omaha.”
 $10,000 invested with Buffett at the start of his tenure would be worth somewhere
in the neighborhood of $500 million (before taxes) today
 Currently the 3rd wealthiest person in the world, and one of the most influential
people. Pledged 99% of his fortune for philanthropy.
Much can be learned from studying Buffett – both about investing
and, more importantly, about life…

3. The Four Domains
 Buffett at Work…
 Found his passion (very) early
 “We’ve been deploying capital since I
was 11. That’s our business.”
 Does what he loves
 “I enjoy the process far more then the
proceeds, though I have learned to live
with those as well.”
 “If we were not paid at all, Charlie and I
would be delighted with the cushy jobs
we hold.”
 Very good at motivating people
 “He has a way of motivating you. He
trusts you so much that you just want to
perform.” – Bill Child, R.C. Willey Home
Furnishings

4. The Four Domains
 Buffett in the Community…
 Makes time for friends (plays
bridge 12 hours/week!)
 “He’s just my best friend. He’s
changed my life. I’m the luckiest
human being in the world.” -
Sharon Osberg (Bridge Partner)
 Gives back
 “If you’re in the luckiest 1 per cent of
humanity, you owe it to the rest of
humanity to think about the other 99
per cent.” – Warren Buffett
 Views himself as a teacher
 Bases his life on “deserved trust”
 “It’s a new concept in business. It’s
called trust.” – Barry Tatelman,
Jordan’s Furniture

5. The Four Domains
 Buffett on Self…
 Keeps an internal scorecard
 “The big question about how people behave is
whether they’ve got an Inner Scorecard or an Outer
Scorecard. It helps if you can be satisfied with an
Inner Scorecard.
 Does what makes him happy
 “I really like my life. I arranged my life and so that
I can do what I want… I tap dance to work, and
when I get there, I think I’m supposed to lie on my
back and paint the ceiling.”
 Is a continuous learner
 “Warren Buffett is one of the best learning
machines on this earth. The turtles which outrun
the hares are learning machines. If you stop
learning in this world, the world rushes right by
you.” – Charlie Munger
 Instills good habits
 “Chains of habit are too light to be felt until they
are too heavy to be broken”

6. The Four Domains
 Buffett with Family…
 Recognizes the importance of family
 “(LTCM) was a major deal…but it could not
have come at a worse time. Buffett was
trying to leave his office to get to a
granddaughter's birthday party.” - Fortune
 Integrates
 Buffett brought along and reread (to his wife)
Security Analysis during their honeymoon
 Son, Howard, is a board member of BRK
 Experiments
 “Eventually, Warren Buffett bought his son a
farm. However, he charged Howard rent
based on his son's body weight”
 Wants his children to find their passion
 “A very rich person should leave his kids
enough to do anything but not enough to do
nothing.”

7. Conclusion
Classic Buffett Question: Imagine that you may choose one other
student in your class, and thereafter be entitled to 10 percent of that
student’s earnings for life. Who would you choose?
“The interesting thing is, when you think about what’s going through your mind,
you’re not thinking about things that are impossible for you to achieve yourself.
You’re not thinking about who can jump 7 feet, who can throw a football 65 feet,
who can recite pi to 300 digits, or whatever it might be. You’re thinking about a
whole lot of qualities of character. The truth is, that every one of those qualities is
obtainable. They are largely a matter of habit. My old boss, Ben Graham, when he
was 12 years old, wrote down all of the qualities that he admired in other people
and all the qualities he found objectionable. And he looked at that list and there
wasn’t anything about being able to run the 100 yard dash in 9.6 or jumping 7 feet.
They were all things that were simply a matter of deciding whether you were going
to be that kind of person or not.”
The lesson of Warren Buffett: Warren has been incredibly proactive throughout his
life at forming the qualities of character that he admires. He doesn’t do things he
doesn’t want to do. He says no. He integrates. He experiments. He makes time for
himself, his family and friends. He does what he loves. He operates in a web of
trust. Potentially most instructive though he wasn’t always a personal success.
Warren’s life is fascinating to study because he has continually improved.