Warren Buffett, CEO of the massive conglomerate Berkshire Hathaway, is widely known as the “Oracle of Omaha” for his ability to seemingly predict the future of the stock market and publicly traded companies.

However, in addition to knowing how to invest wisely and choose winning investments, Buffett also has lots of wisdom for Business owners as well.

Buffett as Business Owner

Of course, Buffett made his billions investing in the stock market, but as CEO of a massive conglomerate, he also has what it takes to run a successful business — many times over.

Through Berkshire Hathaway, he owns many well-known businesses, including Geico, DQ, Heinz, See’s Candy, and more.

In fact, Buffett and Berkshire own more than 65 companies spread across virtually every sector, spanning:

• • Financial services
  • Consumer businesses
  • Energy
  • Healthcare
  • Technology

Types of Companies Buffett Invests In

Nearly half of the portfolio consists of financial services companies.

But with hundreds of billions of dollars invested, that still leaves lots of room for other types of companies.

Part of Buffett’s selection process includes an assessment of company management.

In fact, he’s been known to invest in companies because of how much he respects the management.

One notable example is a furniture store in Omaha that was run by “Mrs. B.”

Buffett bought a majority interest in Nebraska Furniture Mart decades ago for $60 million in a handshake deal.

In fact, he stated in one of Berkshire’s annual letters a few years ago that he would “rather wrestle grizzlies than compete with Mrs. B.,” a nice tribute to one of the best Business Owners he ever knew.

The Best Buffett Quotes for Business Owners

Given the importance Buffett places on management, it would do business owners well to listen to his advice.

Here are some of his best quotes on business management for new and would-be entrepreneurs.

“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

First, let’s start with advice for anyone who’s thinking about starting a business.

On one hand, anyone can look back and see the long-lasting effect someone’s vision had that inspired them to plant a tree.

However, successful business owners can also look forward at the big picture they hope to see in the future.

What significant impact do you want your business to have in the future? And what will it take to get there?

“Risk comes from not knowing what you’re doing.”

This quote is also for anyone thinking about starting a business. Anyone can have an idea, and many people have great ideas.

However, not everyone knows enough to develop their own good ideas. It’s risky to take on a project or business in an area you know nothing about.

Thus, those who are thinking about starting a business would do well to focus on what they know.

In some cases, business owners might need to do their homework to decide whether an idea is worth developing into a business.

“The difference between successful people and really successful people is that really successful people say no to almost everything.”

Many business owners are so excited and passionate about what they do that they get carried away, and people start wondering whether they’re splitting their focus too much.

This quote suggests the importance of focusing on a few things rather than indulging every wild idea that comes to mind.

“Only when the tide goes out do you discover who’s been swimming naked.”

This quote takes more of an explanation that most of the others on this list. Essentially, Buffett is saying that things might look great up to a certain point.

As a result, some business owners may be tempted to take on too much debt with the expectation that a wave will come rolling in, flooding them with profits.

However, if the tide goes out instead of a wave coming in, the business — and its owner — will be totally exposed, and that’s just not a good thing.

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”

Successful business owners spend years building up a reputation for themselves, but a single comment or action can ruin everything in the blink of an eye.

Thus, entrepreneurs would do well to weigh every decision they make every step of the way.

In today’s digital world, nothing is ever truly deleted, so something you did 10+ years ago may come back to haunt you after you’ve started a successful business.

As a result, it’s always advisable to think before you act.

“Time is the friend of the wonderful company, the enemy of the mediocre.”

This bit of advice is for entrepreneurs whose businesses are in every stage. If you’re preparing to start a business, it’s always a good idea to think about the long term.

Many businesses enjoy a boom period in the beginning because they cater to a brief period of hype.

However, when it comes to running the marathon of business ownership, they fail because they were thinking in the short term rather than the long term.

The best businesses stand the test of time because they were built to last.

On the other hand, the worst businesses may sprout up for a short time but then fade away when whatever hyped-up situation they were profiting on disappears.

“Your premium brand had better be delivering something special, or it’s not going to get the business.”

This quote is a natural progression of the last one, and it also addresses businesses at all stages.

If you’re starting a business, you’ll want to think carefully about what you’re offering.

Premium brands that don’t deliver something special simply won’t last.

They may enjoy success briefly due to hype around their brand name, but they won’t stand the test of time.

“If you get to my age in life and nobody thinks well of you, I don’t care how big your bank account is. Your life is a disaster.”

“Of the billionaires I have known, money just brings out the basic traits in them. If they were jerks before they had money, they are simply jerks with a billion dollars.”

These last two quotes go together. Buffett often speaks about self-improvement, but part of that process is your character and reputation.

Even the most successful entrepreneur might want to do some soul-searching if either of these quotes causes them concern.

Learning from Warren Buffett

Given that Buffett is one of the world’s most successful investors, it’s no surprise that people come from around the world to attend Berkshire Hathaway’s annual meetings in Omaha, Nebraska.

Of course, investors have been learning from him for many years, but as you can see, there’s plenty for entrepreneurs to learn as well.