Last fall, a handful of MBAs from the Robert H. Smith School of Business were chosen to meet one of the most successful investors in the world — Warren Buffett. The group traveled to Omaha, Nebraska — the headquarters of Buffett’s investment company, Berkshire Hathaway. On Nov. 18, 2016, the lucky group was able to take part in an informal Q&A session with Buffett himself.
Buffett discussed with the students how S&P 500 companies are performing on Wall Street, active versus passive management, the status of the Dodd–Frank Wall Street Reform and Consumer Protection Act signed in 2010, the Wells Fargo recent scandal, national debt implications, the impact of central banks on stock markets and the insurance industry, among various other questions and topics.
When discussing how students could potentially earn a position at Buffett’s lucrative yet somewhat elusive company, he replied:
“Berkshire has only 25 people at headquarters, but 360,000 employees. The managers of Berkshire’s 70 businesses choose their own people. The qualities he looks for are intelligence, energy, and integrity. But the most important quality in a manager is having a passion for the business. It is not IQ but passion for their businesses that make Berkshire’s 70 managers stand out. When WB was 23 years old, he was rejected by Ben Graham for a job. Years later he received a letter saying the “next time you come to NY stop by my office.” WB went the next day. He never asked about pay. You should take a job that you would take if you didn’t need a job.”
The MBAs from Smith were able to ask “The Oracle of Omaha” about how he managed to become so successful. Buffett, who some rank as one of the most successful investors of the 20th century, was asked to identify the “most important skill in finance.”
Buffett’s response, simply, was salesmanship:
“Salesmanship is how you convince someone to marry you, and that’s how you get a job.”
He explained that temperament is another important quality, one which permits “the control of fear and greed, which have ruined many.”
Buffett added: “Anyone who has become rich twice is dumb. Why would you risk what you need and have for what you don’t need? If you are already rich, there is no upside to taking on a lot more risk, but there is disgrace on the downside.”
You can read more about the trip on the Smith website.