Warren Buffett and His Leadership Style

Warren Buffett is a legendary investor from the North America who donated his eighty-three percentage of savings to the Bill and Malinda Gates foundation. He is the current CEO and Chairman of Berkshire Hathaway, he believes that without the smart delivery, even the smartest idea can fall.

Warren Buffett follows the Benjamin Graham School of value investing. He invests in those companies with a concern of how company make money and make sure securities and shares of the company reach to its intrinsic worth and every shareholder each dollar worth the value. He maintained the balance between company and its investors by make sure both succeed.

His impact of Leadership style brings the dynamic change, he makes his employees believe in themselves, be confident in what they doing and boost their motivation level to work more than they think, they do and provides the full autonomy to his managers and that’s the one of the main reason behind his success . He gives the independence to the managers, let them run the subsidiaries by themselves, without supervising and monitoring to any degree which gives them the attitude of maintaining a business like an owner.

Berkshire’s culture is start from the CEO as Buffett do, it should be consistent and has to be rewarded if followed and punished if not to maintain the curriculum in the company values and ethics. Berkshire acquire the companies at lower price then rivals because of its culture and especially the value of permanence and autonomy which makes business sellers undeniably take it as a valuable part of what they revive on the sale. He maintains the reputation of the Berkshire by believing on his employees which doesn’t brought that many scandals so far and Buffett neither believes it will be more ever he micromanage his reputation and follows exact opposite approach in managing the business he installed and run companywide culture of integrity. He put very trustworthy people at the right places and the company trusts those people a lot. There’s so much self-respect you get from being trusted and being worthy of the trust that the best compliance cultures are the ones which have this attitude of trust.

Warren Buffett put the ethics ahead of the profit for him his reputation of work is more valuable than the money in the business he is ready to lose money but not a reputation. He opens to the public and his shareholders that if you believe somewhere something wrong or not going well give him a call. Warren Buffett follows the long term prospective in making the decision and in planning techniques. He makes sure that company should consistently performed well and he check by return on equity = net income/shareholder’s equity. He also keeps check on the debt of the company that should not be excess by calculating debt equity ratio equal to total liabilities/shareholder’s equity.

His strong decision-making quality makes his investment worth it, he learned a lot from his mistakes as he started learning in this industry from age 11. He also believes that invest only in that which you understand, which itself shouts at you to take me without using calculator itself financials are not going to help anyone to make the business deal worth. His goal is straight forward, acquire the business at a reasonable price, with excellent economics and honest management. He knows how to catch the opportunities and he believes they are like rain it’s better to put out the bucket to save them instead of thimble. Moreover, Even for the good cause he knows how to make people listen or follows to him he has motivated more than 160 billionaires to give away their at least half of the wealth for the philanthropic causes and did a $1 million bid just to have lunch with them. He believes in the innovation and the productivity.

Warren Buffet is a skilled communicator in all aspects of life. Communication is the real key of leadership. Warren Buffet is experienced at positioning himself at the right place at the right time. He has the understanding of the people he is trying to reach and what he can and cannot hear from the people. Knowledge of audiences’ needs and wants gives the orator the ability to listen. Warren Buffett is an excellent listener with the ability to convey his understanding. Warren Buffett adopted the democratic style in managing his employees. Warren Buffett learned from his mistakes and turned his mistakes into a positive thing.

Conclusion

Warren buffet make us think on the culture of the business and rethink on the micromanaging the business and maintaining the reputation like pride He brought the culture of integrity as the commitment for the success of the business and his values towards the corporate social responsibility and ethics made him the biggest investor of the history. He always guides the newcomers to save the money before spend and never rely on the one source of the income make the profit to grow to invest and he never forgets to help the society he donated as much he can and give justice to all the shareholders that every dollar worth it.

He emphasized more on the communication skills for make anyone grow he listen the people and people love to listen him he doesn’t need any source or median to spread his message, He believes in the innovation and production and culture of the company start from CEO.

Works Cited:

1. National Alliance to End Homelessness. (2016). State of Homelessness in America. https://endhomelessness.org/homelessness-in-america/homelessness-statistics/state-of-homelessness-report-2016/
2. National Center for Biotechnology Information. (n.d.). Who Are the Homeless? – NCBI Bookshelf.
3. NPR. (n.d.). As Cities Grow, So Do the Numbers of Homeless. https://www.npr.org/2018/08/09/637056547/as-cities-grow-so-do-the-numbers-of-homeless
4. Coalition for the Homeless. (n.d.). Homelessness & Poverty in New York City. https://www.coalitionforthehomeless.org/homelessness-in-new-york/
5. National Alliance to End Homelessness. (2017). State of Homelessness.
6. U.S. Department of Housing and Urban Development. (n.d.). The Impact of Homeless Encampments on the Environment.