Friday, 21 November 2014

The One-Word Answer to Why Bill Gates and Warren Buffett Have Been So Successful

When Bill Gates first met Warren Buffett, their host at dinner, Gates’ mother, asked everyone around the table to identify what they believed was the single most important factor in their success through life. Gates and Buffett gave the same one-word answer: “Focus.” (See more in The Snowball by Alice Schroeder).

Here are three ways to use focus to ensure we getting the vital few things done.

Ask the right questions. Bill Gates said of Warren Buffett, “I first met him… at a dinner my mother had put together. On my way there, I thought, ‘Why would I want to meet this guy who picks stocks?’ I thought he just used various market-related things—like volume, or how the price had changed over time—to make his decisions. But when we started talking that day, he didn’t ask me about any of those things. Instead he started asking big questions about the fundamentals of our business. ‘Why can’t IBM do what Microsoft does? Why has Microsoft been so profitable?’ That’s when I realized he thought about business in a much more profound way than I’d given him credit for.”

In order to have focus we need to escape to focus. Bill Gates observes a ‘Think Week.’ It goes all the way back to the 1980s and he stuck to it through the height of Micro- soft’s expansion. In other words, twice a year, during the busiest and most frenetic time in the company’s history, he still created time and space to seclude himself for a week and do nothing but read articles (his record is 112) and books, study technology, and think about the bigger picture. Today he still takes the time away from the daily distractions of running his foundation to simply think. Whether you can invest two hours a day, two weeks a year, or even just five minutes every morning, it is important to make space to escape in your busy life."

Know how valuable your time is. As Bill Gates has written, “No matter how much money you have, you can’t buy more time. There are only 24 hours in everyone’s day. Warren has a keen sense of this. He doesn’t let his calendar get filled up with useless meetings. On the other hand, he’s very generous with his time for the people he trusts. He gives his close advisers at Berkshire his phone number, and they can just call him up and he’ll answer the phone.”

Focusing on what is essential is a powerful ability, perhaps the most powerful in a world where we are so bombarded with distracting ideas, information and opinions. However, if we want to consistently give our energies to what is essential we need to develop both kinds of focus. Only in this way can we answer with confidence the question, “What’s important now?”

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