Why Every Leader Should Read Warren Buffett’s Final Letter As CEO
SQUAWK BOX — Pictured: Warren Buffett, retiring CEO of Berkshire Hathaway — (Photo by: Lacy O’Toole/CNBC/NBCU Photo Bank/NBCUniversal via Getty Images)
NBCU Photo Bank/NBCUniversal via Getty Images
Warren Buffett’s send-off letter before he steps down as CEO of Berkshire Hathaway should be taught at every business school and read by every leader, founder, and entrepreneur.
Yes, it’s that good.
In 3,500 words, Buffett showed us once again why he’s been one of the most trusted and quoted financial experts for more than half a century.
Buffett’s Thanksgiving Letter offers four writing and communication lessons for anyone who wants to build trust, have influence, and inspire others.
1. Put the audience first.
Buffett’s writing is an example of audience-centric communication. He doesn’t tell the audience everything he knows but shares what the audience wants to know—and needs to know.
Buffett realized that the letter’s first lines would cause a stir and trigger a cascade of headlines. He began the letter by writing: “I will no longer be writing Berkshire’s annual report or talking endlessly at the annual meeting. As the British would say, I’m ‘going quiet.’ Sort of.”
Buffett spends the bulk of the letter explaining his decision, but first, he reassures the shareholders who are reading it. Greg Abel, he said, will “become the boss…he is a great manager, a tireless worker and an honest communicator.”
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And, in case some shareholders are still skeptical of the new guy, Buffett added this endorsement: “I can’t think of a CEO, a management consultant, an academic, a member of government—you name it—that I would select over Greg to handle your savings and mine.”
2. Write the way people talk.
Trust is built on authenticity, and authentic communicators avoid using jargon, confusing terms, and long, convoluted sentences. They speak simply, like they would in casual conversation.
Buffett’s letter included short maxims to live by. All are simple, memorable, and contain a lifetime of wisdom in few words.
“Don’t beat yourself up over past mistakes. Learn at least a little from them and move on. It is never too late to improve.”
“Get the right heroes and copy them.”
“Decide what you would like your obituary to say and live the life to deserve it.”
“Keep in mind that the cleaning lady is as much a human being as the Chairman.”
“Kindness is costless but also priceless.”
The last one is my personal favorite, a maxim destined to become a classic Buffett quote.
3. Tell stories to communicate values.
Buffett spends the first part of the letter “reminiscing” about some of his friends, like longtime partner Charlie Munger, as well as his life in Omaha.
In the mid-1950s, Buffett briefly lived in New York City. While the city had many assets—and still does—he says, Buffett returned to Omaha after just a year and a half, “never to wander again.”
In 1958, Buffett bought his first and only home in Omaha, “located about two miles from where I grew up…and a 6-7 minute drive to the office building where I have worked for 64 years.”
Buffett doesn’t need to tell the reader that he’s humble, grounded, or grateful. He shows us his character and demonstrates his values through the stories he tells.
4. Don’t take yourself too seriously.
People like people who find humor in situations. A little self-deprecating humor goes a long way in building trust. Buffett saves his best zingers for himself when he reminds reader that he’s 95.
“Father Time now finds me more interesting as I age. And he is undefeated; for him, everyone ends up on his score card as wins.”
“When balance, sight, hearing, and memory are all on a persistently downward slope, you know Father Time is in the neighborhood.”
“Ruling from the grave does not have a great record.”
Humor, clarity, storytelling, and pithy quotes packed with wisdom. That’s the Buffett way.
Buffett closed his letter with this: “Choose your heroes very carefully and then emulate them. You will never be perfect, but you can always be better.” When it comes to writing and communication skills, Buffett would be a fine hero to emulate.