One of my passions is studying successful entrepreneurs.
I love to learn how they think and what actions they have taken to get to the top of their game.
Warren Buffett is definitely in the camp of “successful business owners”, wouldn’t you agree?
I got to wondering, what does it take to be more like Warren Buffett?
What does he do that makes him so great?
So I started researching him.
And, guess what?
He does an awful lot of things that you can do too.
Here are four keys to Warren Buffett’s success that you can implement starting today:
Invest in Value
Mr. Buffett is known as one of the world’s greatest value investors.
To put it simply, he invests in companies based on their future earning power.
What is your future earning power?
In five years, what will your company be earning or what will you be bringing home?
Are you investing now in making that future happen?
Are putting money into becoming that future earner or are you just hoping it will happen?
Invest in your future value if you want to earn and be worth more than you are now.
Know Your Tenets
Mr. Buffett is known widely for his 12 tenets of investing.
These are his guiding principles for decision-making.
He never deviates from his ideals and that focus has paid off for him handsomely.
Do you have a list of your tenets or values for decision-making in your business?
What guiding principles do you live by and run your business with?
Do all of your co-workers and employees know them as well?
Our Simple Strategic Plan starts with creating core values for this very reason.
We know that when you clarify your values will drive better decisions every day
Prepare to Adapt
While Mr. Buffett’s philosophies are written down and well-thought-out, his processes are adaptable to changing markets and business climates.
Regardless of whether the economy is going up or down, his investments steadily grow because of his careful planning.
Have you written down your processes for making money over the long term?
Is your plan adaptable to good markets and bad?
Can you make a profit in all business environments with your plans?
If you don’t have a plan, you can create one here.
Without a plan, you’re just hoping for success, not working towards it.
Build a Circle of Competence
One of the most striking features of Mr. Buffett’s investments is his reluctance to invest in technology stocks.
He has a strict policy of only investing in industries that he understands deeply.
While he is arguably giving up potential profits in the tech industry, he is doing so well in industries in his circle of competence, it doesn’t matter.
Do you know your circle of competence?
Do you only operate in areas that you can dominate?
Are you good at staying out of things that aren’t your superpower?
Take a moment to answer the questions above.
If you are unsure of the answers or you need more help with them, check out our one-page strategy for growth.
As you can see, becoming more like Buffet isn’t hard.
You simply take a series of small steps to create focus, discipline, and value in your business.