Warren Buffett Speaks to MBAs at University of Florida

Warren Buffett gave a speech to MBAs at the University of Florida and discussed what he perceived as the key qualities for successful individuals. He brought the audience through a thought exercise, asking them to pretend that they could own 10% of one of their classmates. He then asked them to consider which classmate they would pick. In his mind it wouldn't be the smartest, or the fastest, or the best looking, but the one that we liked the most or had the best relationship with.

He then reversed the situation and said each individual could go short on one classmate. He also stated he didn't think it would be the least intelligent, or ugliest. It would be the one that each person disliked the most.

I sort of agree. In the corporate world I do think it's far more important to be liked than to be comptetent. But I'm not sure that's how people look at "investments." In that world, I could care less if I like the person. I may be friend with someone but that doesn't mean I'm going to invest in them. In fact the most successful people from my past are generally the ones that I liked the least. If I had gone by Buffett's criteria I wouldn't be doing that well.

If I really disliked someone wouldn't it make sense to own 10% of their lifetime income? I'm sure not going to maintain a good relationship with someone who I've taken 10% ownership in.

You can decide for yourself.