Warren Buffett is the world’s most respected investor.

That he is an investing genius is not in doubt. A $1,000 investment in his investment vehicle, Berkshire Hathaway, in 1965 would be worth over $15,000,000 now. Had that $1,000 been invested in the same year in a fund whose value was linked to the value of the S&P 500 (a major index comprising of 500 “blue chip” American stocks), it would be worth less than $200,000 today. The difference is clear.

Buffett isn’t a guy who sits at a terminal trading stocks, as Bill Gates famously thought before meeting him (Buffett eventually became a mentor to Gates). He’s a long-term investor and a deep thinker about business in general, and makes his investments based on a thorough understanding of the long-term prospects of the business, the industry, and the management team.

Given that he knows a thing or two about business, and since he’s been in the game for a zillion years, it is natural to wonder what entrepreneurs may be able to learn from him.

To my wonderment, I couldn’t readily find a well-organised summary of his investment philosophy, which one could then quickly translate into “entrepreneurese.” The Internet is full of articles on Buffett, but the vast majority are a grab bag of aphorisms or randomly compiled “lessons” which fail to identify truly overarching themes.

To generate “Buffett for the Startup/Entrepreneur” it became necessary to actually do some real work — re-read old books, online research, etc — and compile a few quotes from Buffett, his partner Charlie Munger, and his mentor Ben Graham to illustrate each point.

In summary, I believe Buffett’s investment philosophy, translated into advise for entrepreneurs, can be boiled down to six lessons I will explain the in the next few weeks:

  • Knowledge is King
  • The Market is Queen
  • Life Is Too Short
  • Less Is More
  • Know The Ledge
  • Know Your Friends

 


Editor’s Note: This post first appeared on Wole Lawani’s Medium page.

Read this next
More From TC
Business, Funding, people, Technology
13th March 2019

The business of tech continues to be redefined by innovators in a wide array of professional fields. These women, though not ‘techies’, have discovered a way to use their unique expertise to create value for customers through technology.

Why we need more women in technology isn’t far-fetched. But, how to encourage and keep more women in technology, especially in Africa, remains a mixture of targeted changes in things like policy as well as in nuanced cultural perceptions that inhibit entry and growth for women in the sector.


TechCabal is a Big Cabal Media brand



Copyright © 2019
All rights reserved

Privacy & Terms