Warren Buffett, often hailed as the greatest investor of all time, earned his reputation through years of patient, consistent investing. Known for sticking to long-term principles, Buffett built his success by avoiding short-term trends and focusing on lasting value. He often held on to investments for decades, showing a rare level of commitment to his decisions.
However, one of Buffett’s lesser-known traits is his willingness to change his mind. While many see changing decisions as a sign of weakness, Buffett views it as a strength. As a leader, being open to new information and adjusting your course accordingly shows humility and a focus on long-term success, rather than clinging to pride or ego.
Buffett’s ability to adapt was evident in two significant decisions he made recently:
1. Selling Half of Berkshire Hathaway’s Apple Stake
Berkshire Hathaway first bought Apple shares in 2016, starting with $1 billion and growing its stake to over $160 billion by early 2024. Despite his public praise for Apple and its CEO, Tim Cook, Buffett decided to sell off half of Berkshire’s stake in Apple. While the exact reason for the sale wasn’t disclosed, it’s likely a mix of realizing profits and tax planning. It wasn’t that Buffett lost faith in Apple, but he adjusted to changing circumstances and made the best decision with the information at hand.
2. Cutting Off Donations to the Bill and Melinda Gates Foundation
Another major shift came when Buffett announced he would no longer leave the majority of his fortune to the Bill and Melinda Gates Foundation, a commitment he had made in 2006. At that time, he had pledged to donate his Berkshire Hathaway shares to the foundation throughout his lifetime and after his death. However, Buffett recently changed his mind, stating that the foundation will receive “no money after my death.”
While the exact reasons are unclear, this change came after Bill and Melinda Gates’ divorce, as well as Buffett’s own resignation from the foundation’s board. Buffett also mentioned that his children are now better prepared to handle the responsibility of managing his fortune, a shift in perspective since 2006.
The Leadership Lesson: Be Willing to Change Your Mind
The key takeaway from Buffett’s actions is simple: Good leaders must be willing to change their minds when faced with new information. Sticking to a plan just for the sake of consistency can be harmful when circumstances evolve. Leaders should focus on making the best decisions based on current data, even if that means adjusting course. As Buffett has shown, adapting to change is not a sign of weakness, but a mark of wisdom and humility.
