Warren Buffett’s Leadership Lesson: The Power of Changing Your Mind
Warren Buffett, widely regarded as the greatest investor of all time, earned his reputation through patient, long-term investing. Known for sticking to his core principles, Buffett has often resisted trends in favor of focusing on long-term value. He has held investments in certain companies for decades.
However, one of Buffett’s less talked-about qualities is his willingness to change his mind when new information arises. While many leaders view changing their minds as a sign of weakness, Buffett sees it as a sign of strength. He understands that adapting to new information is essential for long-term success. Changing your mind requires humility and putting long-term goals ahead of short-term pride or ego. This ability to reassess and adjust is one of the most crucial leadership qualities.
Two Examples of Buffett Changing Course
Recently, Buffett provided two clear examples of how he is willing to change his mind when circumstances change:
- Apple Investment:
A few months ago, Buffett’s company, Berkshire Hathaway, sold off a large portion of its stake in Apple. Berkshire initially purchased $1 billion worth of Apple stock in 2016, which eventually grew to over $160 billion. Though Buffett has often praised Apple CEO Tim Cook and has expressed his desire to own the company forever, he decided to reduce the stake. While the reasons for the sale haven’t been made public, it’s likely due to a combination of taking profits and tax considerations. Buffett made the best decision based on the current situation. - Philanthropy Change:
In a more surprising move, Buffett recently told The Wall Street Journal that he was no longer planning to donate the majority of his fortune to the Bill and Melinda Gates Foundation, as he had previously committed. Instead, his children will now be responsible for deciding how to allocate his wealth. Buffett had long pledged to support the Gates Foundation, but after Bill and Melinda Gates divorced and changes occurred within the foundation’s leadership, Buffett changed his plans. He explained that his children are now prepared for the responsibility, saying, “They were not fully prepared for this awesome responsibility in 2006, but they are now.”
A Lesson for Leaders
The lesson is clear: Great leaders, like Warren Buffett, are not afraid to change their minds when presented with new information or when circumstances shift. While it’s important to stick to your core values and principles, it’s equally important to stay adaptable and make decisions based on the best available information. Changing your mind doesn’t mean you were wrong; it means you’re committed to making the best choices for the future.
