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Warren Buffett:

Best Award: “Oracle of Omaha or the “Sage of Omaha”.

ECONOMICAL & PLAIN LIFESTYLE:

He lives in same Omaha, Nebraska house that he purchased in 1958 for $31,500 with a
current value of $700,000. In 1989, Buffett spent $9.7 million of the Berkshire’s funds on a
corporate jet. He jokingly named it “The Indefensible” because of his past criticisms of such
purchases by other CEOs.

CHARITY:

Warren Buffett decided to make a commitment to give his fortune to charity back in June
2006. Buffet's charity donation is approximately $30 billion, which is the largest donation in
the history of the United States. The donation was enough to more than double the size of the
foundation with 83% of it going to the Bill and Melinda Gates Foundation. Buffett believed
that his family had enough money to get started in life so Buffett decided to give his fortune
to charity.

COMMUNICATION:

Warren Buffet is a skilled communicator in all aspects of life. Communication is the real key
of leadership. Skilled communicators have an appreciation for positioning in the business
world. Warren Buffet is experienced at positioning himself at the right place at the right time.

Leadership is crucial to any successful business and good leadership is what Warren Buffett
is all about. This is what makes Warren buffet a good business leader.

COGNITIVE THEORY:

Mr. Warren Buffet's investment strategies and course of leadership are shining examples of
characteristics shared by cognitive theorists. Cognitive theory is an approach of explaining
behaviour through perception, anticipation, and thinking. Mr. Buffet's continual approach of
analyzing both possible investment choices, ability to place management resources of the
right calibre in the right position has consistently brought this investor to the forefront
amongst peers and the marketplace. At the core of every sound investor is a creative
innovator.

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CREATIVITY:

Innovation demands creativity. Creativity in turn draws on our cognitive faculties, across the
full amplitude from emotion to reason. In the number-heavy world of global investing,
innovative thinking is critical. Innovative investors decipher future trends, spot likely winners
by combining science (financials) with art (acuity and perception) and continuously mitigate
risk. The principle of only competing within your range of competitive advantage is a
principle that can be applied to many other areas in life, and Mr. Buffet's ability to work and
live by this idea has allowed him to continue forward with minimal bruising.

WHAT MAKES HIM A GRT LEADER?

TRUE LEADER: This is what everyone wants to know because Warren buffet
is so successful. It all starts with leadership. Warren buffet is a true leader where his
leadership makes a difference in the world. Leadership is very much related to change and
Warren Buffett has the capabilities of leadership change to fit the changing world. Warren
Buffett has repeatedly demonstrated the ability to map read in the irregular waters of change

NOT A BORN LEADER: Warren Buffett took the falls that any other leader has to take.
Warren Buffett learned from his mistakes and turned his mistakes into a positive thing.
Warren Buffett shares his leadership at all organizational levels and Buffett is empowered to
share leadership responsibilities.

Managers are made to be organizational, controllers and budgeters. Warren Buffett has
leadership in all three departments and one must have these traits to be a good business
leader.

SELF EMPOWERED LEADER:

Warren Buffet's is a self empowered leader, because he is loyal, sets goals, plans a strategy
for achievement, and stays committed until he accomplishes his purpose. Up to date, he is the
greatest stockbroker of all-time. He is a very conservative investor that prefers to invest in
companies that sell name brand products that he uses. For example, Coca-Cola, Gillette
Razors, See’s Candy, Gulfstream Jet, and GEICO are the major companies he invested in. In
the nineties his assets quadrupled in less than five years. He is a smart investor that usually
does not take big investment risks. For example, he will not invest in internet stock, because
the return is unpredictable. He likes to invest in companies that he is sure will be successful
20 years later. He buys the company with the intentions of keeping it forever. Usually, the
management team of each company is the same staff that sold it Warren Buffett from the
beginning. He stays loyal to his partners, and the team works their best to keep him happy.

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5 More Personal Qualities behind the

Success of Warren Buffett
Passion:

Buffett has right passion to investing. No doubt. He had identified his passion at the time of
childhood and had done his maximum to develop this passion to the right level. Those who have
read about him may know his childhood activities and how it later helped him to become a
successful investor. This is an exciting lesson for all investors. Remember, any effort that have
enough passion, finally reach to success it really deserves. Buffett is the best example to learn how
one can identify his passion and how it can develop to next possible level to achieve incomparable
success!

Common Sense:
Have common sense, have common sense. This is not a word from me. These are the word from
most successful investors in the world. If you buy and read the classics written by Benjamin Graham
or Philip Phisher, majority of their advices focused based to the use common sense. If you go
through the investing activities of Warren Buffett, you can feel the role of common sense played in
each action.

Discipline:

Discipline is the other name of Warren Buffett. If you read more about him and his activities, you will
amaze by knowing the discipline he had shown! Yes, he is a disciplined investor and developed this
quality from the childhood itself. Discipline known as the first mantra of any investor and a most
required quality for each investor to learn and develop. I have already covered the requirement of
discipline with number of articles in this blog and which itself shows the importance of building this
quality.

Determination:

Buffett has high level of dedication to this job. He never crossed or compromised with this quality at
any time in his career or life. Determination to the job considered as the door to success. This is a
lesson for those who claiming as investor but, considering investing as a part time hobby or business.
Always remember the requirements of having dedication and determination to the work. This is not
only applicable to investing but applicable to every area.

Patience

Let the rain come with water or rock. I am bothered least. This is the approach of Warren Buffett! I
never heard or read about any situation that put him panic. Whether it is a huge market correction
or long lasting economic recession, steep volatility of the prices of stocks where he invested heavily,
Buffett never missed the coolness and calm. This is the result of patience he have practiced and

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applied self.

These are the five magic qualities considered as the pillars behind the success of Warren Buffett. We
have lot to learn from his life, qualities and activities. We have lot to do to develop such right
qualities to become successful in life or the area where we really committed to. I don't believe
anything impossible if I really want to achieve and when trying hard for that. An honest self
assessment and putting little effort before committing to anything, certainly produce amazing
results. Success will be always yours.

What Makes Warren Buffett Successful?

First of all, if the success of Warren Buffett were easily understood and replicable, clearly
there would be many more wildly successful investors in the world, but of course there are
not. While I concede that this observation comes dangerously close to efficient market
theorist’s six-sigma explanation of Mr. Buffett’s success – that with so many coin-flipping
investors you are bound to have an outlier like Buffett simply by chance – I do not think it is
a null hypothesis that can easily be rejected. The truth is there are very few investors even in
the same ballpark as Buffett. But why? Is it just chance?

Kind of. Mr. Buffett has explained it by acknowledging that he is “wired” in such a way that
makes him very adept at capital allocation. This might be a disconcerting notion to some as it
implies that you either have it or you don’t.

But what is “it” anyway? To me, it is a combination of an array of characteristics, some very
learnable, some less so. The learnable ones are characteristics every CFA charterholder
probably has. These are things like strong analytical skills as well as simply a good
knowledge of the financial markets. That is not especially hard to replicate. Moreover, with
tens of thousands of CFAs in the world you would expect a few more Buffetts were this all it
takes.

It is the less-learnable characteristics that set Buffett apart and this is where watching Warren
Buffett the person may help the most. People who have spent time with Mr. Buffett notice
two things. For starters, he reads – constantly. Sometimes he can spend his entire day
reading, and it’s not just for pleasure. He reads because he is hungry for information that will
make him a more successful businessman. Very few people have the drive Warren Buffett
has.

Easy enough right? You are probably thinking, “Well if all I have to do to become a
billionaire is read all the time then sign me up for the value investor’s book club.” Not so fast.
A lot of people read a lot. The difference is Buffett’s memory. Not only does he read but he
remembers everything he reads. Folks familiar with the man know how tremendous his
memory is. Very few people have the memory Warren Buffett has.

The most important less-learnable characteristic Buffett possesses, though, is very

uncommon. It is emotional discipline. By this I mean the ability to resist the natural human
instincts of fear, greed, pride, regret and all the other irrational biases to which people are
inherently inclined to succumb. I have been trying myself to master these biases for years
and, let me tell you, it is tough. Even once an investor is cognizant of these biases he may

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find it extremely difficult to control them. I can’t let myself buy because stocks are going up
(greed) or sell because they are going down (fear). I have to base my decisions entirely on an
unbiased assessment of the underlying business. This is far easier said than done.

Several years ago the WSJ ran a story about entitled “Lessons From the Brain-Damaged
Investor.” The article discussed studies in the field of “neuroeconomics,” a sub-field of the
more general category of behavioral economics. Some of these studies suggest that brain
chemistry itself can explain irrational financial decision making and that individuals with
damage to the part of the brain responsible for controlling emotion actually make better
financial decisions. A sample of brain damaged individuals more appropriately weighed risk
and payoffs in a simple gambling game than a control group consisting of individuals with
similar IQ but no brain damage.

No, I am not suggesting Warren Buffett has brain damage. Rather, I think he has an innate
acuity to controlling emotions that most people do not. Perhaps some people have as much
control over their emotions, but the number is probably small. Further, it is unlikely that such
a person also has the intelligence, knowledge, ambition, memory and patience of Warren
Buffett. Said differently, all the characteristics necessary to construct a master investor may
exist independently in many different people, but the probability of them all existing in the
same person is very low. Warren Buffett happens to be the only one to date.

Consider some of the other personal qualities that have contributed to Mr. Buffett’s success.
He is very personable and pleasant. That certainly hasn’t encumbered his road to riches, as it
took the personal relationships he had with the original investors in the Buffett Partnership
for Mr. Buffett to get started. He is also very good at reading people, whatever you think
“reading” them might involve. Just look at how many successful investments were in part due
to his ability to assess the integrity of the business’s management.

So there you have it. Warren Buffett’s success is indeed the result of luck. But it is not the
coin-flipping kind of luck that academics would like to believe. Rather, he is simply lucky to
be endowed with all the requisite qualities that make for investment success. This begs the
question, then, is it worthwhile to study what has made Mr. Buffett successful? Can we even
hope to acquire the skills driving his success? Without hesitation, I would answer in the
affirmative. Even if we cannot hope to ever be as wealthy or respected, any effort to be will
make us both better investors and better businesspeople. Warren Buffett is the pinnacle of
investing perfection. While we may never get to his level ourselves, we can still benefit from
trying.

Warren Buffett
general characteristics
Warren Buffett's fundamental needs, values, and orientation towards life are symbolized by
the four astrological elements. Each person has their own unique balance of these four basic
energies: fire (warmth, inspiration, enthusiasm), earth (practicality, realism, material
interests), air (social and intellectual qualities), and water (emotional needs and feelings).

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Buffett's "elemental make-up" is described below. Remember that most people are
"unbalanced" or lopsided, and if Warren is lacking or deficient in a certain element (or
elements), it simply means that he needs to consciously develop that particular aspect in order
to appreciate and/or work harder in that dimension of life.

Sometimes we overestimate the element that we are least endowed with, sensing it as a lack
within ourselves, but more often we neglect or ignore it. The qualities described below will
be reiterated and explained in more detail in the following pages.

He is a nurturer and a protector and is prone to what has sometimes been referred to as the
"Atlas Syndrome" - namely, carrying the weight of the world on his shoulders. Warren
Buffett assumes responsibilities in his relationships very conscientiously and often takes on
more than his share of the troubles as well. Though Buffett appears (and indeed often is)
rather passive, he possesses a great deal of quiet inner strength and the ability to flow with
and repeatedly endure life's inevitable adversities. He is apt to be surrounded by people who
rely on him, and though Warren Buffett derives much satisfaction from providing, giving,
and being needed, he can also let himself be drained emotionally and/or financially by taking
care of other people and not caring sufficiently for himself.

Warren Buffett has a very strong need for security and he places safety first. He is unlikely to
make sudden changes or to take new directions that involve risk and unpredictability. Any
break from the past is very difficult for Warren and he needs a great deal of support when
trying to make even healthy and positive changes in his life or habits. ("Habit" is a key word
for Warren Buffett as he is apt to be very attached to his!)

He is very retentive. Warren Buffett holds on (and sometimes clings) to the people, places
and ways he is familiar with. He also tends to repress feelings, and he may need to learn to
express and let go of old feelings and past conditioning.

Physically, Warren Buffett is apt to be hearty and substantial, with a tendency to be stout.
Unless other astrological factors indicate otherwise, he can also be downright lazy, especially
when it comes to exercise. Warren instinctively chooses comfort over challenge. (This is true
in a broader sense as well, not only regarding physical exercise).

His strengths include depth of feeling, patience, and generosity. The qualities that Warren
Buffett needs to cultivate include initiative, openness to change and new experience, and a
stronger sense of self.

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