Business
Warren Buffett’s last shareholder letter offers 5 lessons for CEOs
Good morning. The U.S. celebrates Veteran’s Day today, and we are sending a heartfelt thank you to everyone who has served. Speaking of gratitude, Warren Buffett dropped his ‘farewell’ letter to Berkshire Hathaway shareholders yesterday and offered a master class in introspection, recognizing his own good luck, and passing on sage advice. I’d highly recommend reading the letter in its entirety, but here are a few lessons for leaders I think are worth underscoring:
Curb Your Envy: “What often bothers very wealthy CEOs—they are human, after all—is that other CEOs are getting even richer. Envy and greed walk hand in hand. And what consultant ever recommended a serious cut in CEO compensation or board payments?”
Learn From Failure: “Don’t beat yourself up over past mistakes—learn at least a little from them and move on. It is never too late to improve.”
Measure Success Through Impact: “Greatness does not come about through accumulating great amounts of money, great amounts of publicity or great power in government. When you help someone in any of thousands of ways, you help the world. Kindness is costless but also priceless. Whether you are religious or not, it’s hard to beat The Golden Rule as a guide to behavior.”
Ponder Your Legacy: Buffett talks about how FBI Director J. Edgar Hoover, once revered by Americans in the 1930s, “became disgraced for misusing his post.” His advice: “Decide what you would like your obituary to say and live the life to deserve it … You will never be perfect, but you can always be better.”
Bet on America: “Our stock price will move capriciously, occasionally falling 50% or so as has happened three times in 60 years under present management. Don’t despair; America will come back and so will Berkshire shares.”
Contact CEO Daily via Diane Brady at diane.brady@fortune.com
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CEO Daily is compiled and edited by Joey Abrams and Claire Zillman.
