“You don't have to swing at everything - you can wait for your pitch."
Life doesn’t reward you for the number of swings you take.
Focus on identifying the juiciest pitch.
When it comes, swing hard and don’t miss it.
Warren Buffett is a treasure trove of wisdom.
But contrary to what you have been told, most of it has nothing to do with investing.
10 powerful lessons for life from the Oracle of Omaha:
“You don't have to swing at everything - you can wait for your pitch."
Life doesn’t reward you for the number of swings you take.
Focus on identifying the juiciest pitch.
When it comes, swing hard and don’t miss it.
“The most important thing to do if you find yourself in a hole is to stop digging."
When things aren’t working, change course and try something different.
Be nimble. Be agile.
When you find yourself at the bottom of a hole, stop digging and climb out of it.
“Price is what you pay. Value is what you get.”
Seek out situations where there is a clear disconnect between price and value.
This applies to investing, but it’s more broadly a mental model for life.
Identify disconnects. Exploit them to your advantage.
“Be fearful when others are greedy and greedy when others are fearful.”
Following the crowd is easy, but it can be a trap.
Learn to think independently. Come to your own decisions. Develop your own mental models.
Your unique perspectives are your superpower.
“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble."
Create structures that enable you to capture more of the value you create.
The most successful people have simply optimized their value capture mechanisms.
“Time is the friend of the wonderful business, the enemy of the mediocre.”
Don’t be in a rush.
Set up your life to compound value over the long-term.
Play long-term games with long-term people.
Make time work for - not against - you.
“Risk comes from not knowing what you're doing.”
Be ruthlessly honest about what you know (your circle of competence) and what you don’t.
Focus on playing games within your circle - otherwise, you’re just gambling.
“It's only when the tide goes out that you discover who's been swimming naked.”
Find a balance between pushing yourself for growth and being completely out of your depth.
Never put yourself in a high-stakes position to get caught swimming naked.
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.”
In every interaction - big or small - always act in accordance with strong principles and values.
Your character is your fate.
“The most important investment you can make is in yourself."
There is no better investment than an investment in yourself.
Find time to read, to think, to learn.
Surround yourself with amazing people who push you to become better.
Invest in you.
What are your favorite lessons from the Oracle of Omaha?
I have to admit, I am still shaking from this moment at the Berkshire Hathaway Annual Meeting in 2019...
1/ An Allegory of Finance
— Sahil Bloom (@SahilBloom) July 18, 2020
I have been posting a lot of educational (and humorous!) threads on finance, money, and economics.
My mission is simple: to demystify these concepts and make them accessible to everyone.
All of the threads can be found below. Enjoy and please share!
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1/“What would need to be true for you to….X”
Why is this the most powerful question you can ask when attempting to reach an agreement with another human being or organization?
A thread, co-written by @deanmbrody:
2/ First, “X” could be lots of things. Examples: What would need to be true for you to
- “Feel it's in our best interest for me to be CMO"
- “Feel that we’re in a good place as a company”
- “Feel that we’re on the same page”
- “Feel that we both got what we wanted from this deal
3/ Normally, we aren’t that direct. Example from startup/VC land:
Founders leave VC meetings thinking that every VC will invest, but they rarely do.
Worse over, the founders don’t know what they need to do in order to be fundable.
4/ So why should you ask the magic Q?
To get clarity.
You want to know where you stand, and what it takes to get what you want in a way that also gets them what they want.
It also holds them (mentally) accountable once the thing they need becomes true.
5/ Staying in the context of soliciting investors, the question is “what would need to be true for you to want to invest (or partner with us on this journey, etc)?”
Multiple responses to this question are likely to deliver a positive result.
Why is this the most powerful question you can ask when attempting to reach an agreement with another human being or organization?
A thread, co-written by @deanmbrody:
Next level tactic when closing a sale, candidate, or investment:
— Erik Torenberg (@eriktorenberg) February 27, 2018
Ask: \u201cWhat needs to be true for you to be all in?\u201d
You'll usually get an explicit answer that you might not get otherwise. It also holds them accountable once the thing they need becomes true.
2/ First, “X” could be lots of things. Examples: What would need to be true for you to
- “Feel it's in our best interest for me to be CMO"
- “Feel that we’re in a good place as a company”
- “Feel that we’re on the same page”
- “Feel that we both got what we wanted from this deal
3/ Normally, we aren’t that direct. Example from startup/VC land:
Founders leave VC meetings thinking that every VC will invest, but they rarely do.
Worse over, the founders don’t know what they need to do in order to be fundable.
4/ So why should you ask the magic Q?
To get clarity.
You want to know where you stand, and what it takes to get what you want in a way that also gets them what they want.
It also holds them (mentally) accountable once the thing they need becomes true.
5/ Staying in the context of soliciting investors, the question is “what would need to be true for you to want to invest (or partner with us on this journey, etc)?”
Multiple responses to this question are likely to deliver a positive result.
1/ Here’s a list of conversational frameworks I’ve picked up that have been helpful.
Please add your own.
2/ The Magic Question: "What would need to be true for you
3/ On evaluating where someone’s head is at regarding a topic they are being wishy-washy about or delaying.
“Gun to the head—what would you decide now?”
“Fast forward 6 months after your sabbatical--how would you decide: what criteria is most important to you?”
4/ Other Q’s re: decisions:
“Putting aside a list of pros/cons, what’s the *one* reason you’re doing this?” “Why is that the most important reason?”
“What’s end-game here?”
“What does success look like in a world where you pick that path?”
5/ When listening, after empathizing, and wanting to help them make their own decisions without imposing your world view:
“What would the best version of yourself do”?
Please add your own.
2/ The Magic Question: "What would need to be true for you
1/\u201cWhat would need to be true for you to\u2026.X\u201d
— Erik Torenberg (@eriktorenberg) December 4, 2018
Why is this the most powerful question you can ask when attempting to reach an agreement with another human being or organization?
A thread, co-written by @deanmbrody: https://t.co/Yo6jHbSit9
3/ On evaluating where someone’s head is at regarding a topic they are being wishy-washy about or delaying.
“Gun to the head—what would you decide now?”
“Fast forward 6 months after your sabbatical--how would you decide: what criteria is most important to you?”
4/ Other Q’s re: decisions:
“Putting aside a list of pros/cons, what’s the *one* reason you’re doing this?” “Why is that the most important reason?”
“What’s end-game here?”
“What does success look like in a world where you pick that path?”
5/ When listening, after empathizing, and wanting to help them make their own decisions without imposing your world view:
“What would the best version of yourself do”?
