Copyright © 2008 Ed Bagley
Imagine my surprise Wednesday (3-5-08) when I discovered
that Warren Buffett, who has played second fiddle to Bill
Gates as the world's richest man for several years, is now
the wealthiest billionaire in the world with a net worth of
$62 billion.
For the uninitiated, a billion dollars is a million dollars
1,000 times. At $62 billion, you could also say that
Buffett is worth a million dollars 62,000 times. Gates
slipped to No. 3 at $58 billion on the just released 2008
list by Forbes magazine.
Equally surprising to me was the fact that, after reading
The Tao of Warren Buffett, I discovered that Buffett had
some very valuable information on what students should know
when selecting their first job after graduating.
"Managing your career is like investing—the degree of
difficulty does not count," said Buffett. "So you can save
yourself money and pain by getting on the right train."
According to Buffett, one not only needs to learn what kind
of business to invest in but what kind of business to work
in.
If one goes to work for a company with poor long-term
economics, then he (or she) can never expect to do really
well because the company does not do well. Salaries will be
below average and raises will be few and far between, and
there is greater risk of losing your job because management
will always be under pressure to cut costs.
But if you go to work for a company that has great
long-term economics working in its favor, then the company
will be awash in cash. This means higher salaries and tons
of raises and promotions for a job well done. Plus there
will be plenty of room for advancement as management looks
for ways to spend all that free cash.
In short, Buffett says you want to work for a company that
has high margins (of profit) and makes lots of money. And
you want to stay away from businesses that have low margins
and lose money.
One is a first-class train ride to Easy Street; the other
is a long, slow, hard freight-train ride to nowhere in
Siberia.
A good example of a company with high margins, no debt and
billions in cash reserve is Microsoft.
The next step to getting on with your career is to also
work for a company that allows you to do what you love
doing.
"There comes a time when you ought to start doing what you
want," says Buffett. "Take a job that you love. You will
jump out of bed in the morning. I think you are out of your
mind if you keep taking jobs that you do not like because
you think that it will look good on your resume. Isn't that
a little like saving up sex for your old age?"
It is not hard to figure out why Buffett is a very smart
person. He did not become the wealthiest man in the world
by being stupid. It takes no talent to lose money; it takes
a lot of talent to make a lot of money.
According to Buffett, spending a life getting up and going
to a job that you hate, with people you do not respect,
leads to frustration and discontent, which you bring home
with you from work and share with your family, which makes
them unhappy as well. This, of course, makes for a lousy
life for everyone you love, including yourself.
When you find a job you love, going to work puts a smile on
your face, which you can take home with you at the end of
the day to share with your loved ones.
If you are worried about money, remember that the people
who love what they are doing are the ones who rise to the
top of their fields and end up making the most money. Do
what you love, says Buffett, and the money will come.
(Editor;s Note: The Tao of Warren Buffett is written by
Mary Buffett (Warren's daughter-in-law) and David Clark,
both of whom were the best-selling authors of Buffettology.
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Read my 4-part series on Job Interviews: "It Is Not What
You Say, But How You Say It That Counts ' Part 1", "How to
Answer When Asked Your Strengths and Weaknesses ' Part 2",
"How to Handle Job References ' Part 3" and "What Do
Employers Really Want When Hiring? ' Part 4".
Find my Blog at:
http://www.edbagleyblog.com
http://www.edbagleyblog.com/JobsandCareers.html