Personality Analysis Essay on Warren Buffett

Personality refers to a persons difference in characteristics patterns of feelings, thinking, and behavior. The individuals characteristics are noted to evolve from different biological and environmental factors. Warren Buffet is listed as one of the wealthiest men in the world. Warren has approached his investing by applying a fact-based and systematic way of investing (Finkle, 2010). Warren has a habit of conducting an in-depth analysis on different companies he is interested in, upon being satisfied he then negotiates for a sensible price. While leading the investigation, his primary focus is on how best the company will perform in the future through proven methodology as also measurable results over future intuitions. Indeed having future hunches has in the past enabled some investors to get some attractive returns but as for Warren he is very particular about what he wants, and this has allowed him to make minimum loses in his investment and impressive gains with his reliance on measurable results of all the potential companies. Additionally, Warren is noted to approach all his decisions making regarding the different business investments acquisitions in a very logical manner that is rendered objective as he does not allow his emotions or personal feelings to deter his decision (Finkle, 2010). Warren decisions to have less attitude and own value evaluations cut from his investment approaches have allowed him not to be susceptible to massive losses that often accompany illogical thinking. However, Warren has faced some public critics regarding his lack of feelings attachment in his operations. This has made he suffer significantly as based on his logical perspective conflict situations have been created which could be avoided in the event there were feelings based perspectives considered as an appropriate approach.

Literature review about Warren Buffett

Warren is described as an attractive American Capitalist with a remarkable life. Warren life description is not focused on the charming and humble guy instead on the individual capitalist investor how is very sensitive and also cautious regarding his business decisions making choices. Warren view of stocks is there is the need for an investor to patiently hold the shares acquired. He often noted that it is never okay for an investor to count on a good sale made but instead focus on making the purchase so attractive that even the average sales are bound to give excellent results (Lowe, 2007). Therefore, this illustrated his ability to focus beyond the financial opportunities presented as he recognizes the economic potential of different unique businesses. Warren invests in various companies, but the underlying factors that he ensures he has researched and learned as much, there is to determine regarding the business opportunity. Warren notes the advantages of learning all there is to companies before acquisition allows the investor to make a logical and also informed decisions.

Over the years Warren has grown to recognize some of the most rewarding business opportunities naturally. He notes businesses need not to continually embrace their success on the employees being exceptional in their work but through exploration of excellent management as the reputation of a company stays intact thus it is necessary to ensure a business remain attractive for the investors (Lowe, 2007). Over the years Warren has proved to love his work. He is passionate about investing, and this has allowed him to have a distinctive character on how he conducts his ordinary businesses. Warren keen investment habit has made him have a routine where he sticks with companies that he feels he is extremely comfortable with while investing (Lowe, 2007). His ability not to spend outside the United States has allowed him to gain a comprehensive knowledge of the different companies to invest in and also fit in his comfort zone.

Discussion of methodology

Warren investment methodologies have over the years been documented and referred to by different investors. Warren personality as earlier noted as playing a significant role in his investment. Warren is recognized to be a focused individual who prefers to gather as much information regarding an event a possible before making any determination regarding the same (Rojek, 2000). Therefore, through his in-depth analysis of different business factors, Warren can make very few mistakes. Example, Warren does not focus on how good business can deliver attractive returns in the next few years but instead evaluates on how the identified business opportunity can potentially make him lots of cash in the future. With the long-term mind-set developed, it allows him to have the privilege of being a logical thinker who does things in a very intentional manner. Majority of Warren investment decisions are not based on emotional attachment; he does his level best to ensure he can successfully de-touch his feelings from the identified business opportunity (Rojek, 2000). By approaching the business with less sentimental attachment, Warren has a chance to make many sober decisions that in the long run allows him to generate attractive returns. Evidently, in every business, it is paramount for the investor to identify where the business value is located precisely. Warren recognition of the need to have a wholesome success has enabled him to have the ability to not only rely on his intuition and in-depth research but also entrust n a company proper management. His recognition of the importance of a team player has not only helped him make sound decisions based on the company reputation but also boost his confidence ability to perform and deliver the needed activities.

Main argument section

Warren main investment formula is noted in his Two-Colum Valuation method reflects in depth his personality (Phipps & Burbach, 2010). The first investment focus includes the cash, bonus, and stocks that an individual is willing to invest in a business opportunity. Warren belief It is paramount for an individual to understand the value in monetary. By explicit recognition on the monetary value, then the individual will have a clear image of the expected results, through the financial benefit, Warren has successfully managed to make a logical decision. Businesses are encouraged to take insurances to allow them trade in a more comfortable environment. In the event some losses are encountered by the enterprise's insurance can cover the claim. The second value is earnings that are generated from sources other than insurance underwritings and investments (Phipps & Burbach, 2010). Warren notes a company reputation can earn the substantial firm profits, his ability to recognize the importance of team effort creates the great business venture. The third value is intricacy (Phipps & Burbach, 2010); Warren does not heavily rely on the hope and feelings all is going to be excellent but focuses on the measurable projections and data. The value can either be calculated from a positive or negative perspective. Additionally, the amount clearly demonstrates the people ability to distinguish what they can do with consideration of what is at stake at the moment. Thus, intrinsic value is considered to be an estimate rather than an actual figure.

Conclusion

In summary, Warren is an exciting investment character to study in detail. Throughout Warren investment career his personality has emanated to reflect on his investment decisions. Warren is described to be a logical individual who bases his decision on the gathered measurable data. Warren is patient with his investment decision he chooses to focus on the long-term benefits that are expected to be acquired from the investment as opposed to the short-term gains by the person. Warren can distinguish his emotional aspect from an investment as he prefers to have a clear and uninterrupted way of making his investment decisions. References

Finkle, T. A. (2010). WARREN E. BUFFETT AND BERKSHIRE HATHAWAY, INC. Journal of the International Academy for Case Studies, 16(5), 61.

Lowe, J. (2007). Warren Buffett speaks: Wit and wisdom from the world's greatest investor. John Wiley & Sons.

Phipps, K. A., & Burbach, M. E. (2010). Strategic leadership in the nonprofit sector: Opportunities for research. Journal of Behavioral and Applied Management, 11(2), 137.

Rojek, C. (2000). Leisure and the rich today: Veblen's thesis after a century. Leisure studies, 19(1), 1-15.