Warren Buffett announced his retirement yesterday at the AGM of the shareholders of Berkshire Hathaway. Likened to a music concert, it is a annual celebration of the life of one man who lived a life of principles and created extraordinary wealth. A pilgrimage of sorts for investors, I had the opportunity to attend this meeting in 2019.
This blog is a reflection of the non-investment lessons I observed from him which in turn was influenced by a book of observations of him by Robert Hagstrom.
King Yadu and Lord Dattatreya
In the Bhagavata Purana, when King Yadu asks Dattatreya the secret to his happiness, Dattatreya explains that he found wisdom not from a single guru, but from observing 24 natural elements and beings earth, fire, water, sky, animals, even a spider and a dancing girl. From each, he drew profound lessons. His wisdom came through careful, mindful observation of the world around him.
Observations Distilled into The Warren Buffett Way
There are now scores of books available on Warren Buffett, but one of the first to systematically analyze his investment style was “The Warren Buffett Way” by Robert Hagstrom.
He wasn’t an apprentice to Buffett but learned by meticulously studying his annual letters and observing his talks. He identified twelve core tenets across four categories of Business, Management, Financial, and Market. This never before distillation of Buffett’s style was groundbreaking work that shaped a generation of investors, including myself.
I was fortunate to discover Hagstrom’s book when it was first published in 1994. Deeply impressed, I also obtained all of Buffett’s shareholder letters and studied them. I then converted the insights from this book into PowerPoint and spoke at various forums to share this wisdom with others.
Buffett’s Non-Investment Influence from My Observations
But beyond his investing strategies, the following three aspects of Buffett’s lifestyle that I observed have influenced me:
- His habit of reading for a few hours every day and commitment to lifelong learning
- His simple lifestyle and detachment from material wealth in spite of being one of the world’s richest people
- His announcement in 2006 giving away 85% of his wealth during his lifetime rather than after death
The Vanaprastha Pledge
Buffett and Gates subsequently launched the Giving Pledge to encourage billionaires to pledge at least 50% of their wealth during their lifetimes. https://givingpledge.org
This initiative has in turn inspired my own Vanaprastha Pledge, which I plan to launch by year’s end.
Through this pledge, I aim to encourage wealthy Indians to embrace the concept of Vanaprastha outlined in our ancient scriptures. After providing for the families’ share of their wealth, I propose to invite the ultra-wealthy to take a simple yet radical step: determine what you truly need for your remaining years and then pledge away everything else. Not through posthumous bequests, but here and now, while you can witness and guide the impact of your giving.
I believe Vanaprastha as a bridge between karma yoga and jnana yoga has not received adequate attention. For the contemporary era we live in, we need to evolve a stepwise process for cultivating Vairagya, which is a crucial intermediary step for us to get ready for the stage of Moksha.
Warren Buffett may never have heard the term Vanaprastha. Yet in essence, he has lived his entire life that beautifully embodies its spirit, teaching us all through his example, just as nature taught Dattatreya.
Hari’s Curries
A buffet of reflections