On Feb. 27, a group of 20 Berkeley-Haas MBA students from the Investment Club trekked to Omaha, NE, to meet Warren Buffett. Every year Mr. Buffett invites students from MBA programs around the country to tour some of the Berkshire Hathaway portfolio companies and participate in a two-hour Q&A followed by lunch.
In a guest blog post, two students share what they learned from the legendary Mr. Buffett.
By Ben Ferrara and Sulaiman Al-Bader, MBA 2015
If we had to choose our Top 5 favorite nuggets from the many that Warren Buffett shared with us, it would be these:
#5. Some people go back and relive their youth by finding old Playboys; I buy old Moody’s reports.
#4. Risk is losing purchasing power—NOT volatility.
#3. Always surround yourself with people better than you are.
#2. Study success and failure through the biographies of leaders like Sol Price and Sam Walton, who didn’t care about money but about being the best and winning.
#1. Success comes from thinking and by creating time to think without meetings, committees and PowerPoint.
But there’s so much more to say…
It’s a brisk 8 degrees Fahrenheit and far from California 20 Berkeley MBAs are embarking on an adventure in Omaha. This special day includes company visits at Nebraska Furniture Mart, Borsheims, and Oriental Trading Company. Yet all of us are laser-focused on catching a glimpse of, inspiration from—and yes, a group photo with—the Oracle of Omaha. Warren Buffett is one of the few living and actively working legends in the game of finance.
En route to Berkshire Hathaway headquarters in Kiewit Plaza, we actively prepare for our Q&A with Mr. Buffett. We gather in a room with 160 MBAs—from Canada, Boston, and Austin—where a deep appreciation of capitalism and opportunity is brewing. When Mr. Buffett (and his world champion bridge partner, Sharon Osberg) enter the room, there is silence—and then, a feeling of warmth and familiarity when we see Mr. Buffett’s contagious smile and ever-present Coca-Cola product (which happened to be Cherry Coke).
Over the next two hours, the 84-year-old Buffett shares his wisdom on how to pick winners (both companies and people), personal models of success, how to develop a contrarian viewpoint, trends in income equality and philanthropy, and more. What makes the most impact on us is the importance he puts on picking “first-class human beings.” Mr. Buffett shares a story of meeting a Holocaust survivor who told him that whenever she makes a new acquaintance, she hears her internal voice asking: “Would this person hide me?” Her story provided a life lesson to Mr. Buffett, and now to us. He sums it up like this: “If you’re 70 years old, even wealthy, but you don’t have people in your life who would be willing to hide you in that scenario, you have not succeeded in your life, no matter how other people see you.”
Our Omaha adventure does not stop there: Mr. Buffett generously invites us to join him for lunch at Piccolo Pete’s, where we socialize with other MBAs. The two of us have the tremendous good fortune to sit with Mr. Buffett at his table, where we enjoy a plate of steak and fries, along with more of his pearls of wisdom in this intimate setting. One of these pearls is Mr. Buffett’s sharing his self-proclaimed favorite investment: GEICO. He says investing in the insurance company was a turning point for his career, and positioned Berkshire Hathaway for long-term success. He also encourages us to challenge the status quo by avoiding shortcuts in finance—for example, relying too much on third-party analyst reports—and thinking for ourselves, citing an example of exciting South Korean companies he found from a paperback book on equities.
“You’re unlikely to get great ideas from others,” Buffett tells us. This is a recurrent theme for him: thinking for yourself and following your own path, surrounded by gracious and giving people, is the recipe for success. It’s hard to argue with the sweet success of the Oracle of Omaha. As we finish our root beer floats, and leave that afternoon for Berkeley, we feel we have gained not only a renewed sense of purpose, but also inspiration about the endless possibilities we have to make a difference in this world over the course of our entire life journeys.