"Plenty of people have higher IQs and plenty of people work more hours, but I am rational about things. You have to be able to control yourself; you can't let your emotions get in the way of your mind."
It's amazing to see Buffett narrow things down to the simplest way of looking at situations; he's a master at it. He does it again here when he says it's not how high your IQ is or how hard you work that makes you a success in business leadership, but rather in remaining rational.
What he's saying here is he strives to operate in business life objectively rather than subjectively.
Business can be one of the most emotionally driven areas of life, with the newest thing coming down the pipeline about once an hour. You read about information based upon various agendas that are impossible to keep up with. That's why Buffett's operational discipline is so important to emulate.
Remaining rational means letting the facts, data and information speak. Don't listen to the marketing and emotional tactics that are endlessly used to get your business or change your direction. Facts are the most important part of the decision making process we can embrace.
While that may sound too simple, leaders of huge corporations make decisions based upon emotional appeals and marketing ploys all the time. Facts are the key part of being rational, and we need to let them speak to us clearly.
Some questions to ask ourselves are things like "Do the facts line up with historical growth?" Do they line up with our core values and purpose? Are they close in results to our own market research? Are they similar to real trends going on in the marketplace?
Rationality is a key to not making the types of mistakes that can destroy a business, while making decisions based upon emotions is is no different than throwing the dice. This doesn't mean that their won't be excitement and adrenaline as part of the process, it means that it isn't the deciding factor in whether we'll go with things or not.
Success in business, when it comes right down to it, is about making good decisions most the time and a few really bad decisions rarely. Rationality and objectivity concerning the facts will keep us on the right path.
What better example can we have than Warren Buffett and his track record at Berkshire Hathaway (BRK-A)?
Other Buffett Resources:
Warren Buffett: The trouble with being a legend
Warren Buffett: 'I told you so'
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