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[O564.Ebook] Download PDF Warren Buffett's Management Secrets: Proven Tools for Personal and Business Success, by Mary Buffett, David Clark

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Warren Buffett's Management Secrets: Proven Tools for Personal and Business Success, by Mary Buffett, David Clark

Warren Buffett's Management Secrets: Proven Tools for Personal and Business Success, by Mary Buffett, David Clark



Warren Buffett's Management Secrets: Proven Tools for Personal and Business Success, by Mary Buffett, David Clark

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Warren Buffett's Management Secrets: Proven Tools for Personal and Business Success, by Mary Buffett, David Clark

Even in today's economic climate, when so many investors and major companies are failing, Warren Buffett continues to be successful in all aspects of his life. Mary Buffett and David Clark have written the first book ever to take an in-depth look at Warren Buffett's philosophies for personal and professional management -- what they are, how they work, and how you can use them.

Through close examination of Warren Buffett's life and career from his earliest days to now, Buffett and Clark shed light on his decision-making processes and reveal his strategies for keeping on track and maintaining focus. They examine Buffett's inimitable leadership qualities and explain how Warren integrated what he learned over time into a winning management formula and became not only the manager whom other managers want to emulate but also the second richest man in the world.

A true companion volume to Buffett and Clark's successful Buffettology series, Warren Buffett's Management Secrets is filled with anecdotes and quotes that show how Buffett's life philosophies are reflected in his business decisions and in the way he manages people and businesses. This insider's view into Warren Buffett's management techniques offers simple solutions for success to newcomers and seasoned Buffettologists alike and illustrates how and why success in business and life usually go hand in hand.

  • Sales Rank: #1167027 in eBooks
  • Published on: 2009-12-01
  • Released on: 2009-12-08
  • Format: Kindle eBook

Review
"Among the many striking management lessons in this book from one of the world's most successful managers is Warren Buffett's focus on human passion: When you hire people who love what they do, they make you look like a genius." -- Stephen Denning, author of The Leader's Guide to Storytelling and The Secret Language of Leadership

About the Author

Mary Buffett

For over twenty years, Mary Buffett has been considered a leading authority on the subject of Warren Buffett’s investment methods. Her international bestselling investment books, co-authored with David Clark—Buffettology, The Buffettology Workbook, The New Buffettology, The Tao of Warren Buffett, Warren Buffett and the Interpretation of Financial Statements, The Management Secrets of Warren Buffett, Warren Buffett and The Art of Stock Arbitrage, and The Warren Buffett Stock Portfolio—have been translated into twenty-four foreign languages and are considered “investment classics” the world over. Ms. Buffett is an international speaker, entrepreneur, political and environmental activist, and has appeared on television as one of the top finance experts worldwide. She has been the principal speaker for prestigious organizations around the world. Ms. Buffett has worked in a wide range of businesses including extensive work as a consultant to several Fortune 500 companies. She is an associate of the top ranked UK Buffettology Fund in the United Kingdom. In 2013 she became a contributing blogger to the Huffington Post. The blogs and information about the UK Buffettology Fund are on her website MaryBuffett.com.

David Clark

For over twenty years, David Clark has been considered the world’s leading authority on the subject of Warren Buffett’s investment methods. His international bestselling investment books, co-authored with Mary Buffett—Buffettology, The Buffettology Workbook, The New Buffettology, The Tao of Warren Buffett, Warren Buffett and the Interpretation of Financial Statements, The Management Secrets of Warren Buffett, Warren Buffett and The Art of Stock Arbitrage, and The Warren Buffett Stock Portfolio—have been translated into more than twenty foreign languages and are considered “investment classics” the world over. He holds a B.S. degree in finance and a law degree from the University of California, Hastings College of the Law. He is presently writing Berkshire Hathaway: Fortress of Capital, a corporate biography. When not consumed with matters of finance, he is engaged in the second great passion of his life, which is trial law and maintains an active national practice.����

Excerpt. � Reprinted by permission. All rights reserved.

Introduction

In the chronicles of the investment life of Warren Buffett much has been written about his investment methods. Each and every investment he has ever made has been taken apart and analyzed in excruciating detail. David and I alone have written the books Buffettology, The Buffettology Workbook, The New Buffettology, The Tao of Warren Buffett, and Warren Buffett and the Interpretation of Financial Statements -- all on Warren's investment methods and all international best-sellers.

But what was sorely missing from the body of Warren Buffett literature was a book that addresses and discusses the brilliant way Warren has managed his life, his businesses, and the people who manage Berkshire Hathaway's 233,000 employees around the globe. Besides being a genius at investing, Warren Buffett is also a genius of a manager, with over eighty-eight CEO s of different companies reporting directly or indirectly to him. In modern business no man has managed a more highly talented group of managers, in so many diverse businesses, and delivered such spectacular results. In many ways Buffett's managerial record surpasses even his amazing investment record with Berkshire Hathaway, where the company's operational annual net income grew from $18 a share in 1979 to $4,093 a share in 2007. This equates to a compounding annual growth rate of 21.39 percent, a record that indicates that Warren and his managers are doing a fantastic job of minding the store. (In comparison, Berkshire's investment portfolio for the same period grew at an annual compounding rate of 19.78 percent, which means we can argue that as a manager Warren outperformed himself as an investor.)

In our quest to bring you all things Warren Buffett, we have written the first ever book that takes an in-depth look at Warren's management methods -- what they are, how they work, and how you can use them. We discuss the impact that Dale Carnegie had on Warren's life and how Carnegie's teachings helped transform Warren into the master manager he is today.

We have kept the book easy to read, with short chapters. The methods that Warren uses are simple and easy to understand, but, as you will see, their impact is powerful.

We look to the future and imagine many generations using Warren's enlightened management methods to inspire and motivate people of all ages to achieve their dreams and visions.

Mary Buffett and David Clark
July 1, 2009 Copyright � 2009 by Mary Buffett and David Clark

Overview

Warren Buffett's Management Secrets

Once upon a time there was a slightly nerdish young man by the name of Warren Buffett, who, at the age of twenty, was frightened to death to stand up in front of people and speak to them. Then he discovered Dale Carnegie's course on public speaking and it changed his life. Not only did he develop the courage and skill to speak in front of groups of people, he learned how to make friends and motivate people. Warren considers his Carnegie education a life-changing event and the most important diploma he has ever received.

Once Warren was comfortable with public speaking, he also became a devotee of Dale's philosophy on interacting with people. He read and reread Carnegie's book How to Win Friends and Influence People dozens of times, underlining it and memorizing entire passages. The book became his bible for dealing with people and one of the cornerstones of his management philosophy.

Was he successful?

Here is what A. L. Ueltschi, the founder and chairman of FlightSafety International Inc., the world's leading aviation training company, told author Robert P. Miles about Warren as his boss: "Leadership is really what a good manager is about. The letters of the word represent the qualities that a good manager should have: L is for loyalty and
E is for enthusiasm.
A stands for attitude, and
D is for discipline.
E stands for example -- you have to set a good example -- and
R is for respect.
S represents scholarliness, and
H is for honesty.
I and
P stand for integrity and pride.

"The thing I like best about Warren Buffett is that he possess all these qualities."

We will examine Warren's leadership qualities and how Warren synthesized what he learned into a winning management formula, and became not only the manager that other managers want to emulate, but also the second richest man in the world.

To facilitate the learning process, we've broken down Warren's management philosophy into the following five segments or steps -- each working with the others to create the perfect combination of management skills.

1. Pick the Right Business

Warren has figured out that not all businesses are created equal. The first step to success is to own, manage, or work for the right business with the right economics working in its favor. That's how to get ahead of the game right from the start, whether you are an owner, a manager, or an employee.

2. Delegate Authority

The second step is Warren's unique view on delegating authority, which has allowed him to grow Berkshire Hathaway from a small, failing textile company into a giant multinational conglomerate.

3. Find a Manager with the Right Qualities

The third step is to know the qualities that are needed to manage an excellent business -- here Warren is looking for integrity, intelligence, and a passion for the business, which also happen to be the qualities that we need to cultivate in ourselvesto be successful managers.

4. Motivate Your Workforce

Once the excellent business is found and the right manager is put into place, Warren has the job of motivating his managers to be all that they can be, so that the business, the manager, and the employees can be as productive as possible. Here we will spend time studying Warren's adaptation and expansion of Carnegie's methods. If there is a single skill that a manager should be great at, it is motivating others to achieve. Warren developed a specific set of motivational skills that have inspired his managers to hit one business home run after another and helped him build Berkshire Hathaway into the $150 billion market cap company that it is today.

5. Managerial Axioms for Different Problems

And finally there are a number of specific Buffett managerial axioms for dealing with everything from managing leverage, to handling dishonest employees, to keeping costs low.

At the end of the book we will discuss a few "Warren-isms" that will help you manage your day-to-day life. Success in business and life usually go hand in hand, and Warren has some helpful hints that will help us improve our life management skills. Copyright � 2009 by Mary Buffett and David Clark

Most helpful customer reviews

3 of 19 people found the following review helpful.
Rip-Off Alert!
By BoBo Delicious
The most you will learn from reading this book is that: 1. You should go find a famous guy and write almost anything you want and some fool like me will buy it. 2. Nice trees are dying and being made into paper for what? Stuff like this. That is bad. Bottom line: There is almost no meaningful content in this book. 90% of this is obvious and has been said many times before and better. Rich and famous people are always seeking new and better ways to take your money with the least invested on their part, and this book proves it. Give your money to starving children in India. Do not give your money to Warren Buffet and his co-horts; they already have tons of money and they have no advice for you that is worth anything.

7 of 8 people found the following review helpful.
Proven Tools
By Rosebud Book Reviews
"Proven Tools" - a Book Review by John Lehman of Warren Buffett's Management Secrets by Mary Buffett & David Clark

I read something in the first chapter of this little book that I have been thinking about for days: "Pick the right business to work for." It seems simple, but means the difference between a high-paying career and a life of drudgery. Yet most of us, at least when the age we are first looking for a job, take anything. We don't feel we deserve choice. In a nutshell, that is the most amazing quality of this compendium of five simple principles for personal and business success, it empowers the reader. It gives us choice. It even allows us to fail.

Management Secrets reminds me of another favorite of mine, The Actor's Handbook by some of David Mamet's former students at NYU. I'm a big fan of the playwright and have read his books, but there is something about getting the information from a second-party that is almost better. It's as if they have taken the time and effort to assimilate a complex subject and put it in such a way that can implement it. That's certainly true here. The two authors tell us how to determine the "right business to work for" in terms of per share earnings, debt and gross margin, and even follow these with a course of action for people who find themselves in the wrong choice, "So if you find yourself working for a company with poor inherent economics, it is better to get out now than it is to stick around year after year waiting for things to change."

There are stages businesses go through and an entrepreneur may go against everything people advise to start a new enterprise, but he or she needs to turn around and delegate to others if the company is to ever reach the next level. That's a challenge that leads to micro-managing or bureaucrats bending to the perceived wishes of their superiors. Buffett advises: "In the management of our lives, the rule is: Love what you do. In the management of our businesses, the rule is: Hire people who love what they do." And, of course, let them do it. I agree, that the deepest principle in human nature is a need to be appreciated. Warren Buffett seems to be a genius at this, but a great thing about this book is that reading it we are convinced we can be good at doing this too. There are some basics, like "if you must criticize someone personally, praise them first," that sound a little too Dale Carnegie simplistic to me (Buffett is a great follower of Carnegie), but for success we should think of what others want instead of what we want, and how to encourage others to come up with bright ideas instead of following ours. Chapter 21, "Hidden Dangers of Making a Living on Borrowed Money" is as good an explanation as you'll find anywhere on our present financial quagmire.

But I love the candor with which this wisdom is presented, "Hire an adviser and his job likely becomes to advise you to do what you wanted to do in the first place. Advisers who voice dissent too often are soon out of a job. Most people don't keep `no men' around." And perhaps that's the beauty of this book. It doesn't tell us we are wrong or right, but reminds us of some things we may have forgotten in our day-by-day. Things that make us better managers, but also allow us to love what we are doing more. You can read Warren Buffett's Management Secrets in a couple hours, but my guess is that, once you do you will keep it handy and read it again, often.

- John Lehman, [...].
10 Things I Think I Know for Sure about Getting Your Writing Published-CD

4 of 5 people found the following review helpful.
Warren Buffet's Management Secrets are Not Really Unique Secrets
By David M. Taylor
I purchased this book at Costco for $[...]. It was worth it for this price but not for the publisher's price of $[...].

The book has many valuable management and leadership guidelines and principles that are followed by Warren Buffet (according to his daughter-in-law, Mary). For the most part, these are sound principles that are taught in a variety of other business books in the marketplace.

The book (and hence, Buffett's management priciples) is broken down into five segments;
1) Pick the Right Business
2) Delegate Authority
3) Find a Manager with the Right Qualities
4) Motivate Your Workforce
5) Managerial Axioms for Different Problems.

Each of these five sections is expanded on briefly in the book. The entire book is only 123 small pages long so the amount of wisdom that can be captured is limited.

A couple of the key points I picked out from Buffett are;
1) Maintain a long term view of the business and don't always focus on making short term numbers...this pressures staff to "manufacture" results.
2) Measure management on how well they did relative to the overall marketplace not just relative to last year's performance.
3) Rely heavily on the principles taught by Andrew Carnegie in "How to Win Friends and Influence People".

David Taylor
[...].

See all 13 customer reviews...

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