For decades, the pilgrimage to Omaha for Berkshire Hathaway’s Annual Shareholder Meeting has been bucket list material.
Beyond the numbers in the Berkshire Hathaway annual report – though some do attend just for that (it’s 30 minutes of procedural meeting process at the end of the day) – there’s a reason it attracts over 35,000 people every year.
And when I found myself sitting there in that stadium, shoulder to shoulder with 35,000 other eager fans, hanging onto every word Warren Buffett said across six-and-a-half hours, I realised: it wasn’t the $300 billion-plus cash reserve, balance sheets, or succession plan (which will soon crown Greg Abel by year’s end).
It was the lessons about life. Because the way you live life can either build your wealth or bleed it dry.
Wealth isn’t strictly just about dollars, either. It’s about how you think, who you surround yourself with, and the choices you make daily.
Here’s what I learned from Warren Buffett at the Berkshire Hathaway Annual Shareholder Meeting (outside of money and investing alone).
Go where you don’t belong
One truth I’ve come to learn time and time again in life is that good things happen when you put yourself in rooms where you don’t feel like you belong. That feeling of uncertainty, fear, and discomfort is usually a sign of growth.
Consider the “Rule of Five” – if we truly are the average of the five people we engage with the most, are your five people the right building blocks for who you want to become?
Now that doesn’t mean you have to be best friends with someone to associate with them in this sense. You don’t even have to know them personally, just engage with their ideas, i.e. podcasts, social media, mentorship programs.
Self-awareness is the cheat code for life
During the Q&A portion of the meeting, Warren Buffett was repeatedly peppered about his perspectives on artificial intelligence, to which he simply responded, “I don’t know anything about AI,” along with his fears surrounding the technology.
In a world populated by talking heads who’ll wax poetic on topics that they have zero in-depth knowledge about, his self-awareness was striking. The ability and willingness to understand and embrace your competencies and deficiencies is the key to everything (focus on your competencies!).
Focus on game access first, game selection next
The early years of your life and career are all about “game access.” Or opportunities that allow you to learn, build experience, and create a mental map of your likes, dislikes, and competencies (wherever you can get them).
Once you’ve developed a blueprint, everything becomes about “game selection.” Or choosing how you deploy your finite energy wisely; exercising the power of “no” so you can concentrate on what’ll likely drive asymmetric rewards.
Find your “Foxhole Friends”
The Oracle of Omaha reminisced about his partnership with Berkshire Hathaway’s late chairman Charlie Munger, explaining how they enjoyed their failures more than their successes.
“Then we really had to work… it was more fun digging out of a foxhole together.”
Shared struggle builds bonds. Navigating painful tests and setbacks with someone may be a far richer experience than celebrating the wins with them. So find your foxhole friends and cherish them.
RELATED: That Time Someone Paid $27 Million For A Steak Power Lunch With Warren Buffett
Opt for one sharp knife over 1,000 dull ones
This comment was very much in reference to his deputy: Ajit Jain. Warren Buffett noted that he’d rather have one Ajit than thousands of mediocre operators and analysts.
The broader insight being, as you progress in your own career, you should also be wary of having 1,000 dull knives at your disposal – focus instead on sharpening a single blade instead. Which isn’t too dissimilar from the Bruce Lee quote:
“I fear not the man who has practised 10,000 kicks once, but the man who’s practised one kick 10,000 times.”
Being interested is a rare and powerful trait
Reflecting on Charlie Munger’s life, Buffett commented how he was so interested in the world that the world eventually became interested in him.
Interested people are prone to giving their deep attention to something to learn more about it – they open up the world, ask the right questions, and observe with intent. Or in Munger’s own words:
“Being interested is how you become interesting.”
You need your garden (and to enter it daily)
Legendary businessman and one-time world’s richest man, John D. Rockefeller, would regularly take breaks from his notoriously demanding schedule to mill about in his garden. It was his personal escape, the place where he could think slowly and clearly.
Warren Buffett mentioned that when he speaks with ultra-successful people about their daily rituals that contribute to their effectiveness, all of them cite some personal version of Rockefeller’s garden. Buffett’s own garden? “I talk to myself.”
He does get the best ideas from himself, after all.
Simplicity wins in the long run
Intelligent people are routinely drawn to complex answers and solutions. But it’s also a trap – because the simplest explanation is often the best one. Complexity may be sexy, but simplicity is beautiful.
Ask yourself this: when was the last time you chose the simple solution and came to regret it?
In relationships, business, investing, health, or life. Think about it.
Surround yourself with people you would want to spend your last days with
This was prompted by a question about what Buffett would do if he had one more day with Charlie Munger. That’s when the seasoned Berkshire Hathaway CEO admitted they shared many “last days” together – that an average day together was what they would’ve done on any real last day.
Who you decide to spend your time with is perhaps the most important decision you’ll ever make. Don’t wait until your “last day” to be with the people who truly matter in your life, because you never know when that last day will actually come.
Be an Intelligent Investor
As the most prolific disciples of Benjamin Graham (famed economist, father of value investing, and author of The Intelligent Investor), both Warren Buffett and Charlie Munger have long championed the virtues of their esteemed mentor.
But the constant references to The Intelligent Investor throughout the day, particularly when it came to how they developed their mindset, only emphasised how fundamental the text should be for anyone serious about investing.
So, I’m making this the tenth and final lesson to encourage you to get your own copy. It’s the gospel, according to Warren and Charlie, and that’s good enough for me.
Additional nuggets of gold
- Deferred consumption is how to change your life.
- When should you sell stocks? Never, hold good ones forever.
- You need to be in love with the subject, not just the money.
- Have the right heroes: copy them and get on the right track.
- Just keep going despite mistakes or missteps.
And the final comment that I believe is the most telling:
“If you’re lucky in life, make sure a bunch of other people are too.”
Also read:
- Warren Buffett Teaches You To Pick Stocks & Get Rich In Just 5 Minutes
- Warren Buffett’s Most Important Piece Of Advice Isn’t About Money
- The IQ Score Warren Buffett Says You Need To Succeed
- Warren Buffett Reveals The Secret To A Happy Life (Aside From $$$)
- 10 Pearls Of Wisdom From The ‘Oracle of Omaha’ Warren Buffett
