Devoted to Managers and those that seek to improve their management skills

"One of Berkshire's businesses is FlightSafety, the founder is dedicated to preventing deaths, he's not motivated by the next quarter's numbers."

This was Warren Buffett's response to how he identified extraordinary business ability. The thing he was getting at was having a passion for what you do and a high level of integrity.

The next quarter's numbers and profits can never be the prime motivator of an extraordinary business leader. Of course what we do has to make sense and make profits, but it will never be what makes a leader great.

In the instance of the leader of FlightSafety, he had a passion for saving lives. Everything he did in the business was focused on that end. You know when someone has passion and integrity like that, the profits will naturally follow. And they do.

While the idea of doing everything for short-term gains has been discredited for years, most business leaders still make quarterly numbers the main goal of their tenure. It does a lot of harm to business.

Of course part of the problem in public companies is the shareholders themselves, who put public pressure on when their little portfolios drop some. And of course when public pressure is put on, boards get nervous and pressured into doing something about it. It becomes an endless cycle.

Buffett fights that with Berkshire Hathaway (BRK-A) by not splitting the stock price, so he doesn't attract the speculators and day traders that can cause enormous flucuations in stock prices.

The point is people should be looking for the type of leaders that are passionate about what they do, have a high level of integrity, and work based on a long-term outlook. That person will become successful and bring a company to success if people will forget about the inevitable short-term swings that come in any market or business.

Warren Buffett is the embodiment of the principle, and his success with Berkshire Hathaway shows it's a powerful way to do business.

Other Buffett Resources:

Wisdom of Warren Buffett

Warren Buffett, investor

Warren Buffett: The trouble with being a legend

Warren Buffett: 'I told you so'

Company growth

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