Warren BuffetMunger kicked off the session with a speech titled “Why was Warren Buffett & Berkshire Hathaway so successful?” He listed three main factors: – Mental aptitude: “WB [Buffett] is one of the smartest people I know. WB has been extremely interested in investing since he was 10. There is no substitute for having a very intense interest in something you’re trying to succeed at; WB started very early. When you are in a field like investing, which requires long compounding periods, this is an important factor; WB is one of the best learning machines on Earth. Extremely high-IQ people don’t need to keep learning throughout life (they can coast), but people with less intelligence need to keep learning. WB had both — very high intelligence and continuous learning. WB’s skills have increased markedly since he turned 65! If he had stopped learning earlier in life, his record would be much less impressive.” – Focus: “The work at BRK [Berkshire Hathaway] was concentrated in one mind. Great committees are unsuccessful in most fields (such as investing and physics). WB maximizes objectivity. A lot of very bright people make continually bad decisions because they have bad character traits and, worse, they encourage them. Don’t be an extreme ideologue — whether right or left.” – Positive Reinforcement: “As WB succeeded more with his approach and as more people knew of him, this was a form of positive reinforcement to keep doing what he was doing, and do it better. Positive reinforcement is a very important force in life; give positive reinforcement to people you care about when they do good things.”

Sidekick has sage advice of his own ( Complete Article )