Warren Buffett’s genius lies not just in his wealth, but in how he makes decisions—calmly, consistently, and with clarity. In this episode, of The Art of Deciding, Bruce Whitfield explores the principles behind Buffett’s legendary choices, and what leaders today can learn from his disciplined approach to risk, patience, and long-term thinking.
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Buffett's decisions
Bruce speaks to investors and AGM attendees, Hywel George and Terence Moll to paint a picture of Buffett’s decision making process as well as his impact on their decision making.
Key takeaways:
- Simplicity and Patience Win: Buffett’s genius lies in making few decisions but executing them exceptionally well over time.
- Integrity Over Everything: Integrity in leadership is non-negotiable for sustainable business success.
- Emotional Intelligence Matters: Successful investing is deeply human; it requires judgment about character and emotion.
- Long-Term Mindset: Buffett’s success is powered by a focus on the next 10–50 years, not the next quarter.
- Learning from Mistakes: Buffett’s early mistakes, particularly with Berkshire Hathaway itself, helped shape a stronger investment philosophy.
- Importance of Structure: GEICO’s acquisition and use of “float” — permanent capital — was a masterstroke in capital allocation.
- Avoid Hype: Buffett and Munger’s refusal to chase trends, even at the cost of missing out temporarily, shows the value of sticking to core principles.
- Philanthropy as a Decision: Buffett’s commitment to giving away his fortune represents perhaps his most profound decision, impacting millions.
References
- The audio clip of Warren Buffett is from an address to the University of Georgia https://youtu.be/Aa_TPj2pWLU?si=2DdiJwJnc1p_-k2b
- Berkshire Hathaway AGM – Often called the “Woodstock for Capitalists.”
- Warren Buffett
https://www.berkshirehathaway.com/
- Books:
- Key Figures:
- Charlie Munger (Buffett’s late business partner)
- Tim Cook and Bill Gates (noted attendees at the AGM)
- Companies Mentioned:
- Coca-Cola, Apple, Kraft Heinz, Bank of America
- Goldman Sachs, Amazon, Nvidia
- Philanthropy:
Memorable Quotes
Hywel George: “Warren has done things which as professional investors we are in awe of — it’s like standing near Tiger Woods in golf.”
Terence Moll: “I wish I had gone to the AGM 20 years ago. It would have fundamentally altered my decision-making.”
Charlie Munger (quoted): “The first rule of compounding: never interrupt it unnecessarily.”
Warren Buffett (quoted): “If you lose money for the firm, I will be understanding. If you lose one ounce of reputation for the firm, I will be ruthless.”
Terence Moll: “The most important decision is the choice of business partners and allies.”
The Art of Deciding has been featured in The Guardian Podcast Newsletter, Podnews, The List, and the Podbible newsletter, amongst others.
The Art of Deciding is produced by Podcart – https://www.podcart.co.uk/
Series Producer: Jayne Morgan
Bruce Whitfield is an award winning journalist, best-selling author and speaker
