Bill Gates and Warren Buffett talk Business Principles

In this video Bill Gates and Warren Buffett are answering to some questions coming from a student on Keeping America Great. The student asks Warren how do they encourage business leaders to understand contacts and connect the dots. Buffett says that he learned a lot about this in the last year and they have at Berkshire almost seventy managers. He thinks that having some principles takes you through everything and the BedRock principles could take him to remember that he does not need to worry about it because he knows that they work.

The host of the show asks Bill Gates what he thinks is the most important character a business leader needs to have. He says that it is surprising that the fundamentals of business are pretty straightforward in taking more income than spending costs. Bill asks himself if they are making the right investments, are they really keen on the competition they make. This kind of common sense he guesses that it gets developed through experience, because if you are young you can see that at a small scale. A lot of people start large businesses and they have a hard time with them. The basics are pretty straightforward - learning how it works and how it does not work in a variety of industries by reading a lot. A business is an intense period where you can get ahead of the game.

Warren Buffett says that he sends a letter every couple of years and he writes to his employees to run the business like is the only business that your family can own for the next hundred years, you cannot sell it. Every year, the business is not measured by the earnings, is measured by whether the moat around that business gives a competitive advantage over time, and if you keep doing this for a hundred years is going to work out very well.

Bill Gates and Warren Buffett quotes from this video:

  • A business is an intense period where you can get ahead of the game. ( Bill Gates )
  • Run the business like is the only business that your family can own for the next hundred years ( Warren Buffett )

You can watch the video here.

Submitted by YouTube Trader on Tue, 04/06/2010 - 19:53

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