Chris Lau - Seeking Alpha

Tuesday, August 24, 2010

Free MBA Lesson from Warren Buffett - Pt. 1

In the first of a series of videos with Warren Buffett at an MBA school, Buffett discusses the kinds of people to choose for hiring. Intellect, Energy, and Integrity are important, but what is the type of person to choose in a leadership role?

The person to choose for such a leadership role would be one whom you respond the best to.

The person to "go short on" (to bet against) would be the person who had a quality that turned you off. Ego and dishonesty are examples.

How to Be Admired 

The qualities you choose and that which you do not want are traits of your choosing. Behaving like those whom you admire is a way you can be admired too. The habits you choose govern what you become:

"The change of habit is too light to be felt until it is too heavy to be broken."

When it comes to finance and investing, quality of management through leadership must be assessed, almost before anything else (although balance sheet analysis might come first). Shareholders would not want a company run by liars, as written in this article from The Economist (How to tell when your boss is lying - It's not just that his lips are moving).