Warren Buffett is legendary as an investor, but he’s also an incredibly successful businessperson, too.
In fact, the billionaire’s long-term investing perspective is at the core of the business advice that he’s provided over the years.
Here are some of Buffett’s key business lessons from his annual letters to Berkshire Hathaway shareholders:
1. Keep calm in the face of volatility.
Buffett writes that earnings gyrations “don’t bother us in the least.” After all, “Charlie (Munger) and I would much rather earn a lumpy 15 percent over time than a smooth 12 percent.”
2. Keep good company.
Berkshire has never split its Class A shares. As a result, one share is prohibitively expensive for many retail investors. (Track the latest price here.)That discouraged people from rapidly moving into and out of the stock, and that’s exactly the way Buffett likes it. He wants shareholders who share his long-term view.
All the way back in 1979, he wrote: “In large part, companies obtain the shareholder constituency that they seek and deserve. If they focus their thinking and communications on short-term results or short-term stock market consequences, they will, in large part, attract shareholders who focus on the same factors.”