Superior Leader - Warren Buffet

Superior business leader and American investor Warren Buffett is often called “Oracle of Omaha” or the “Sage of Omaha” and philanthropist. (Wikipedia, 2007) Buffett is the CEO, and the biggest shareholder of the Berkshire Hathaway Company. Buffett’s has an estimated current net worth of approximately $52 billion in US funds. Forbes Magazine ranks Buffett the third richest person in the world in September 2007 behind Carlos Slim and Bill Gates.

Warren Buffett is known for his economical and plain lifestyle. Buffett still lives in the 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. (Wikipedia, 2007)

Warren Buffett decided to make a commitment to give his fortune to charity back in June 2006. Buffett’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. Buffett’s annual salary in 2006 was only $100,000. In 2007, Buffett was listed among Time Magazine’s 100 Most Influential People in the World. (Wikipedia, 2007)

What makes Warren Buffett a good business 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. Is Warren Buffett born a leader? The authors of this paper believe not. Experience and research has shown little evidence that an individual who comes to power is 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. In the world of business, many titles related to leadership roles are actively used in business and Warren Buffett wears those titles to make him effective in multiple leadership positions in business. Distinction between good leadership and good management is made often. 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.

Another important trait in Today’s business leadership is 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. Warren Buffet 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.

When Warren Buffett talks, people listen. Warren Buffett can send a message through an open door and does not have to push the message through a wall.

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.

Mr. Warren Buffett’s investment strategies and course of leadership are shining examples of characteristics shared by cognitive theorists. Cognitive theory is an approach of explaining behavior through perception, anticipation, and thinking. Mr. Buffett’s continual approach of analyzing both possible investment choices, market trends, and the ability to place management resources of the right caliber 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.

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. They assess user needs, product features, the proper deployment of money, professional organizational structures and risk management. (Kore Kalibre, 2006)

Mr. Buffett’s instinct and ability to interpret market trends is also held by tight reigns. Despite over 50 years of growth, Mr. Buffett always adheres to one of the most basic business principles: “…only compete where you have a competitive advantage. Warren Buffett refers to staying within your circle of competence. Social psychologists tell us, though, that we are prone to overconfidence when it comes to assessing our abilities…” (Arthridge, 2006) A man of Warren Buffett’s position and track record could easily be derailed to a sense of over confidence. 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. Buffett’s ability to work and live by this idea has allowed him to continue forward with minimal bruising.

By establishing the previous examples, the authors can reinforce the principles of cognitive theory in that Mr. Buffett behavior patterns are clearly dictated by thought processes, which include interpretation, analysis, and foresight. “As experiences and events gain meaning and value, the process becomes increasingly top down as the mind in (a) attempt at an orderly process influences perception though beliefs, goals and external process” (Gardener, 2007)

Warren Buffett’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 workstheir best to keep him happy.

After Warren Buffett’s wife died, he decided to donate 85% of his money to charity. However, “he wants his money to be used the same year he donates it”.(Harris, 2006) The requirement will accelerate the process to help the world. According to Fortune magazine, five-sixths of his money will go to the Bill and Melinda Gates Foundation. This foundation which focus on finding cures for diseases that are common in poor nations. The rest of the money will be split among four other charities, that are each run by his three children and one that is in his late wife’s name.

Warren Buffett is not a huge spender. In fact, he still lives in the same house he bought 40 years ago. Warren “told ABC News “Nightline” that being born into wealth did not entitle his children”(Harris, 2006). In addition, he told Fortune magazine that, “A very rich person would leave his kids enough to do anything, but not enough to do nothing.”(Harris, 2006) In other words, he wants his children to work earn their money and value hard work and smart choices.

In the year 2006, Warren’s first annual donation to the Bill and Melinda Gates Foundation was $1.5 billion and the rest was divided among the four charities. He was the first person to make a donation better than Bill Gates, the richest man in the world. It seems as if Bill Gates and Warren Buffett set a good example and lead others to be more generous, because now the Barron Hilton has committed to donating half of his fortune to charity also. Barron Hilton is the founder of the Hilton Hotels and is worth $2.3 billion. Hopefully, a trend started among the fortunate to give to the less fortunate.

The personality of Warren Buffett ties to the Social Cognitive Level, because he tries to understand and make sense of other people. He observes the differences in social knowledge when dealing with people. Social cognition refers to making sense of ourselves, others, and how the information is used. In the sixties and seventies Albert Bandura and Walter Mischel were psychologists, studying personality development. They found that social learning and cognitive principles improve ones abilities to self-regulate and to follow goals. Warren investment choices were successful, because he conditioned his the way he processed information, choices, and expectations.

Author by. Michael J. Spindler

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How to Make Money With Clickbank and Google

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Author by. ajay kumar

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How to Develop a Professional Image

In this day of technology and the dreaded recordings, insuring that you maintain a professional image is crucial to business success. How you come across on the phone, through your website, on a plane or at a networking event directly impacts how others (read "potential clients") perceive you and your business. Especially if you ARE your business. Here are a few tips for maintaining a professional image in all that you do: 1. Dress for success and act the part. If you need to attend an event or may otherwise come into contact with potential clients, you should dress for success. This does not mean you need to wear a suit, but you should be well-groomed and your clothes should fit you properly. I try to dress in the Corporate equivalent of "business casual" when going out. This insures that I am *ready* to meet with someone should the occasion arise -- even on a plane. :-) On a flight to Los Angeles last year, I was jotting down some thoughts to clients when the gentleman sitting next to me complimented me on my diligence and said that my boss must be pleased with my dedication. I thanked him and said I was. We proceeded to have a great discussion and he has since referred many leads to me. 2. Make the telephone work for you. Whenever possible, answer your phone during business hours. It is so rare these days to get a "live voice" that your caller will be immediately pleased. You should also sit upright or walk around while on the phone in order to inject energy into your voice. Before every conference call, I do a few jumping jacks and toe touches to get the blood flowing again; I am much peppier as a result. 3. Underpromise and overdeliver -- always. There are multitudes of companies out there and it's pretty easy for clients to change who they do business with. In maintaining a professional image, you want to do what you say, when you say it (or earlier!). The old saying of "underpromise and overdeliver" has never been more true than it is today. If you can give added-value to your clients, do it. This holds true for any committees you are part of, nonprofit groups you join -- in all situations, you want to be known as someone who always delivers. 4. Read and reread I read and then reread everything I send out. Whether a quick email or a longer note, you want to be professional in your communications. You want your clients/potential clients to focus on your message, not on your misspelled words or poor grammar. It *really* does make a difference. Always remember, the first impression is often a lasting impression and that people do business with people -- not with faceless entities. When people think of you/your business, you want it to be in a complimentary manner.

Author by. Sandra P. Martini

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Doing Your Homework: How to Get the Facts on a Small Business Franchise

Public relations play a major role in today's business world. Each year, businesses spend hundreds of millions of dollars, paying highly skilled men and women who know how to make everything from hamburgers to airlines look as good as possible in the public eye. It's not that most businesses, products, and services aren't as outstanding as they present themselves to be, but it can be hard to tell which representations are most accurate. So when a hopeful entrepreneur browses through a list of franchises and finds that many work at home businesses appear too good to be true, he may have a difficult time deciding which one to choose. That is, unless he has resources at his disposal to confirm that these business opportunities are legitimate. And as it turns out, though many potential franchisees don't realize it, such resources are available; a person just has to know where to look.

The Franchise Disclosure Document

Because it can be so hard to determine a viable home based business from a total scam, all franchisors, by law, are required to have a Franchise Disclosure Document (or FDD) available to any prospective franchisee. It provides a complete overview of everything about the business, its goals, its history, and its practices that anyone could ever possibly want to know. In fact, a quick jaunt over to the Federal Trade Commission's website shows exactly how precise and complete a disclosure the government expects from all franchises: they provide a 150-page Franchise Rule document to clarify exactly what information a business must supply in order to comply with the law. If there is anything fishy about the franchise you've got your eye on, the FDD will reveal it to both you and the government.

The SBA Franchise Registry

Another easy way to spot potential franchise trouble before it hatches is to check out the Small Business Administration's Franchise Registry. The SBA is a very helpful branch of the US government that specializes in supporting small businesses, including franchises, in any way they can, and one such way is by providing financial backing to small businesses that otherwise couldn't get off the ground. In the case of a franchise, the SBA asks for company information to ensure that the business model is a sound one, there is a history of success, and future success is fairly certain before they provide the financial support. What this practice has inadvertently produced is the Franchise Registry: a list of all the franchise companies that have already submitted their businesses for financial support when a new franchisee starts out. If a franchise is on the list, then the government has given it their stamp of approval and their trust, and so can you.

Learn From Other People

This seems like the most straightforward way to get information, and it truly is. If you want to find out what Adventures in Advertising is really like, talk to one of their franchisees. There is no one who will know better what the strengths and weaknesses of the franchise are, how effectively the business runs, and whether or not it's a worthy investment. Of course, talking with only one DVDNow dvd rental kiosk franchisee may not give you a true perspective on things; because if one person has a negative opinion simply because a work from home vending business just wasn't a good fit for him. But if you talk to a dozen franchisees, you should be able to figure out exactly what your future franchise will be like. You don't have to stop at franchisees, the Better Business Bureau can also offer you information on the franchise you're looking at, based on the reviews of concerned consumers. If, in their database, the BBB has 200 negative consumer reports in regard to the internet business that's recently caught your eye as a potential opportunity, you may want to rethink the choice, because that many unique negative reports probably means there is some merit to the complaints.

When you're looking at franchise businesses, there is no such thing as over-researching. Truly, most opportunities that you'll find, especially through franchise brokers, are trustworthy businesses. But even if research doesn't unearth a huge moral or professional flaw in the infrastructure of the business, it might just tell you some things about the way they practically run that won't mesh well with your personality, lifestyle, and goals. There are plenty of factors to consider when starting a new business, and any knowledge you can get along the way will inevitably be helpful.

writer by. Candice Clem

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Is Starting a Business the Right Thing to Do?

Whoever Said Self-Employment Is a Piece Of Cake Has Never Tried It.

Why would a person leave the job market and strike out on his/her own? Being on one’s own is like taking the supports out from under a bridge. You’re pretty sure the bridge will hold up but there is always a chance it won’t. Starting a business is a form of self discovery as well as a test of self sustainability. People who feel a need to prove themselves tend to be the ones who break away from a job and start their own business.

Everyone Has A Different Approach To Self-Employment

The fact is each business start-up is unique to its benefactor. While there are many different approaches to starting a business the basics remain the same. The internal things that make a business work are the same for a small business person as a giant corporation. Every business must have three stages of operation.

1, the product or service. It must be in demand or have an outlet for its service. It must be marketable as well as have good staying power.

2, must have a good bookkeeping system. Without a good bookkeeping system, the owners don’t know if they are making profits or not. This is very important and an area that small business owners tend to over look.

3, must have good logistics. The business must be able to deliver its goods or service on time and in acceptable condition.

What is the attraction?

For many people the attraction of being in business for themselves is an alluring offer. Their idea of being independent by being their own boss affords them to have a more lay back lifestyle. They don’t have a well enough understanding on what self sustainability entails. Going into business is a challenge even for the most hardy of people. Statistics indicate for every one hundred people who go into business only twenty nine will still be in business in ten years. In two years sixty six were still going and after four years only forty four were still in business.

Much of the dropout rate is because of:

1: lack of preparation.

2. lack of funding

3. lack of information

4. lack of training

5. lack of fortitude

Are you ever ready?

What if you had all your ducks in a row what would be the advantages of starting a business? How about independence and flexibility? Indeed, people who are in business for themselves tend to work more hours and are even more tied to their endeavor. Why? Perhaps it’s because they have something to prove to not only themselves but everyone around them. They look at failure as admitting they don’t have the ability to succeed.

Be prepared for the long haul

If your business does succeed it could mean financial security for you and your family plus you would have something of worth to hand down to your children

Ok let’s say you have made the decision to go into business, what disadvantages are there in the move.

Long hours with little pay.

1. if your business depends on a specialty item it may loose its popularity.


2. Accounting to IRS, state and local tax agencies.


3. loss of social security and any perks you might have had.


4. you must devote yourself to the success of the business


5. high stress and uncertainty.


6. You may have to live off your spouse’s income for a while.


7. you may have to go into debt or borrow on your home’s equity.


8. You may find yourself going to friends for financial assistance.

It’s better said than done.

There is no easy answers. Most people who go into business for themselves find it to be difficult and tiring. Let’s face facts. You may find yourself in a position where you have to do something. If your job goes overseas then what? You may find yourself cleaning carpets, doing lawn care or setting up a security force. There are many things you can do with very little training and low overhead, if you are willing to work hard. Don’t sell yourself short, find your niche and go after it.

Happy Trails !!!

Article's By. Donald Yates

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