Introduction “Price is what you pay. Value is what you get.” – Warren Edward Buffett; With these words Mr. Warren Buffett an American investor and the CEO and largest shareholder of Berkshire Hathaway, is said to be one of the most successful investor on the 20th Century. There are many aspects of Mr. Buffett’s life that makes him one of the most influential and a great leader for our time.
As a great leader the Wizard of Omaha has taken a “hands off” management style which is very similar to Laissez-Fraire leader(67, Practicing Leadership), very delegative leadership that has often lead to low productivity levels but in this case the approach has worked extremely well for Mr. Buffett. His second style of leadership is that his followers have complete faith in him and his honesty towards their business decisions. His third effective leadership style is that he is loyal to his fellow customers and his last would be his ways of profitability, since when he was eleven years young.
Criteria Totaling around up to $50 Billion in total assets in 2011, Mr. Buffett is one of the world’s richest mend. The majority of his wealth comes through his company Berkshire Hathaway, a corporation holding company that is headquartered in his native Omaha, Nebraska. His philosophical view of value investing and prudence has influenced many investors worldwide. If we can define a great leader with ability to influence others around him, then there is no one other in U.S. business like the man Warren Buffett.
Many say that he is the greatest trusted leader in corporate world today. Along with his pal Bill Gates, which in fact he donated 83% of his fortune to the Bill and Melinda Gates foundation, they both spoke at Columbia University telling the students that there was no other better place to invest than in the United States The Wall Street Journal reported.
In Buffett’s case, however, this often criticized leadership style has proven positive effects, by allowing his managers full autonomy, in which he has created where his employees feel condiment and motivated by their extreme leeway. In Berkshires’ 2010 annual report, Buffett states, “We tend to let out many subsidiaries operate on their own, without our supervising and monitoring them to any degree.
Most managers use the independence we grant them magnificently, by maintaining an owner- oriented attitude. By this he hires the right people where he tries to identify talent for succession in planning say a future board of directors. He relies on this method to hire them and then gets out their way allowing them to run their business in a way they want to manage.
Defense “Leadership means having the courage, the determination, and the will to become the person you believe you were meant to be” – George Sheehan which could also mean the same if you were to replace the word leadership with success, which are similar in context to one another. Hopefully, Great leaders provide honesty to their fellow Americans in ways to help better their lives, though not the case in a lot of cases. Mr. Buffett has been able to hold that trait of good ethics through his time as an investor and successor. He quotes –“Honesty is a very expensive gift. Do not expect it from cheap people.”
Words from the wise, he has through rough economic times kept his honesty during business deals where he was misinformed and all the information regarding the stock purchase and acquisition efforts was publicly disclosed. The company’s reputation was dinged. The heir then resigns, and a full investigation was launched and concluded that the employee did intentionally mislead Buffett, in which he still keeps his honestly to his customers even when they do mislead him. His second trait would be his profitability to himself and his company, earning huge payouts from companies like Gillette shaving products by Proctor & Gamble you could say he took a gamble on this deal.
Nonetheless he invested $600 million which eventually grew upwards $2.2 billion before dividends those are few of many investments he partook in, his strategy for profitability is best described as the “Rip van Winkle approach” after the author Washington Irving this business approach is best described by paying a reasonable price for a quality business. Then, they “sleep” through the inevitable ups and downs of the stock market and eventually later down the line cashing out a considerable sum of money.
Through this approach he has been able to turn loyalty from his profits and his honesty, at his Berkshire Company Loyalty is at the core of their business model. This is seen through his investors by which they similarly take the same Rip Van Winkle approach to their stock investments. They buy the stock and for the most part hold on to it for as long as they can.
These traits are what make Mr. Warren Buffett very influential in the business world today. In conclusion, Mr. Buffett is one of the most influential of the 20th Century in the United States and around the world. Through his ethical business paths and his customer loyalty to their earnings and profitability have made him a very powerful man in today’s times. Not to leave behind his profitability he has made over the last sixty years of his young life. He is to me someone to look up to and mold some of his business lifestyles ways into my everyday lifestyle.