The lesson here for entrepreneurs is to understand the impact of emerging trends because these trends create opportunity for entrepreneurs and dis-opportunity for entrenched corporations.
Another key lesson is to admit your mistake so you can decide whether or not to change.
by ,Contributor for Forbes
Based on his annual letter, there will be many articles on Warren Buffett’s wisdom for investors. But as I watched the interview this morning (February 25, 2019), I realized that he had lessons for entrepreneurs as well. Here are nine key lessons for entrepreneurs from his interview with Becky Quick of CNBC.
Admit your mistakes: Given that Kraft-Heinz had a lousy quarter last week, it was only natural that Buffett would be asked about it. Unlike many who come on TV and struggle to admit their mistakes, Mr. Buffett essentially admitted that he had underestimated the impact of private-label brands on branded food sales. The lesson here for entrepreneurs is to understand the impact of emerging trends because these trends create opportunity for entrepreneurs and dis-opportunity for entrenched corporations. Another key lesson is to admit your mistake so you can decide whether or not to change.
Know your limits: Buffett was asked about his exit from Oracle’s stock. His admission was that he did not understand the cloud. I wonder why he got in in the first place if he did not understand the cloud. It’s important to know what you don’t know. And what you know.
Based on his annual letter, there will be many articles on Buffett’s wisdom for investors. But as I watched the interview this morning (February 25, 2019), I realized that he had lessons for entrepreneurs as well. Here are nine key lessons for entrepreneurs from his interview with Becky Quick of CNBC.
Persistence is key: Short-term issues do not seem to bother Buffett. Expect problems and plan for them because it then becomes easier to profit from opportunities as they emerge. But know where the opportunities are, and this requires due diligence.
Do your due diligence: When Buffett talks about companies, it is fascinating to see the numbers about his key investments and portfolio companies flow so smoothly from his brain. Obviously, he has done his homework and does not rely on instinct. Entrepreneurs need to learn how to reduce the role of instinct and use their analysis. And if you do not have the time for analysis, try to make time. Instinctive entrepreneurs are gamblers. Sometimes they win. Mostly they lose. Unfortunately, the media always hypes the entrepreneurs who like to talk about their brilliant instincts.
