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Entrepreneur

Why Warren Buffett Keeps Getting It Right

By Tom Irmen

Why is it that investors everywhere hold this 85-year-old business magnate, investor, and philanthropist, with an estimated net worth of more than $66 billion, in such high esteem? Certainly his net worth speaks volumes, but it is much more than that. People respect his humility and his rather simplistic view of today’s financial marketplace. His personal perspective on investing differs markedly from the so-called experts armed with their reams of charts, graphs, and historical data.

One characteristic of Warren Buffett that small business owners could and should embrace is his long-term view on investing. So long-term, in fact, that many of the gains that will be earned from his investments that he is making today won’t be realized for decades, long after he’s gone.

Mr. Buffett’s long-term view on investing appears to be devoid of emotions and seems to de-emphasize many geo-political events that cause others to take pause. As small business owners, it’s not always easy to ignore our emotions or local, national, and world events. One of the unique advantages of being “small” is our ability to be agile. Unfortunately, this same agility allows us to become somewhat of an “idea of the week club,” where we’re constantly changing gears, which can be truly detrimental to our long-term success.

Although Warren Buffett is 20 years my senior, my age provides me with many of the same insights that most older Americans share. I’ve experienced 16 presidential races, 33 congressional elections, a half a dozen wars, and a host of international crises. Although these events were all portrayed as life-changing, and even apocalyptic, somehow we’ve just seemed to advance on despite these feelings of deep despair that we all experience in our lives.

Your life will be filled with both success and adversity, but you and your small business will enjoy far greater prosperity if you will embrace Warren Buffett’s long-term perspective and avoid all of the “theatre” that seems to surround all of our lives.

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