More than 40 books have been written about the investing strategies of business tycoon Warren Buffett. Buffett, ranked by Forbes as the second-richest man in the United States in 2009, made his fortune buying shares in companies such as Coca-Cola, American Express, General Re and Geico though his company, Berkshire Hathaway.
However, most people fail to recognize that Buffett’s skills as a business executive and manager are just as impressive as his investing prowess, said Richard J. Connors, J.D., who teaches a class on Buffett — “Warren Buffett: The Oracle of Omaha” — for the Lifelong Learning Institute at Washington University,
Connors’ book, “Warren Buffett on Business: Principles From the Sage of Omaha” (Wiley, 2009), brings Buffett’s managerial principles and practices to the attention of the business world.
“Most Buffett books are about investing like him,” said Connors. “My book is different. It’s a tribute to the unconventional Buffett/Berkshire Hathaway model on how to run a very successful company on a highly ethical level.”
Connors, also a registered investment adviser and owner of Connors Investment Management Co. in St. Louis, compiled the majority of the book from letters Buffett wrote to Berkshire Hathaway shareholders from 1977-2008. The book is structured by topic, from corporate governance to executive compensation to executive behavior. It also contains a chapter that specifically addresses business students.
Connors worked on the book with approval from Buffett, whom Connors has corresponded with since April 2006, when Connors first wrote Buffett about the WUSTL course. To Connors’ surprise, four days later, he received a letter back from Buffett supporting the course and inviting him to a Berkshire Hathaway shareholder meeting in May 2006. In January 2007, at Buffett’s invitation, the two met at Buffett’s office in Omaha. They continue to keep in touch about the class and the book.
A significant amount of material in this book is about acting ethically as a businessperson — a principle that Buffett has espoused throughout his career, Connors said.
“Buffett shows it is very possible to run a successful business ethically,” Connors said. “I believe the book will both inspire and educate the reader to be a better manager.”