Warren Buffett Advocates Writing as Key to Clear Thinking
Warren Buffett, the chairman of Berkshire Hathaway Inc., emphasizes that effective writing is essential for clear thinking, particularly in investment. In a 1995 address at the University of North Carolina‘s Kenan-Flagler Business School, he stated that the act of writing is a powerful tool for clarifying one’s thoughts. This sentiment was shared during a PBS program titled “Warren Buffett Talks Business.”
According to Buffett, the blank page represents a significant challenge, revealing any ambiguity in one’s investment strategies. He remarked, “There is nothing like writing to force you to think and get your thoughts straight.” The process of drafting the annual shareholder letter serves as a personal gauge for him, as he often encounters writing blocks that stem from unclear thinking rather than a lack of vocabulary.
Buffett explained, “Every year, when I write the report, I get these [writing] blocks. The block isn’t because I ran out of words in the dictionary. The block is because I haven’t got it straight in my own mind yet.” This approach not only enhances his own understanding but also serves his audience well.
Communicating Simply for Broader Reach
To maintain accessibility, Buffett adopts a straightforward approach in his writing. In a 2019 interview with CNBC, he shared that he envisions writing directly to his sisters, Doris and Bertie, prioritizing plain English over complex financial jargon. His goal is to communicate information in a way that he would appreciate if the roles were reversed. This strategy has contributed to the widespread readership of his letters, reaching beyond the immediate circle of investors.
Buffett also connects effective communication with economic advantage. He has claimed, “The one easy way to become worth 50% more than you are now… is to hone your written and verbal communication skills.” He argues that strong analytical abilities are often rendered ineffective if one cannot convey their insights clearly.
Influence of Clear Writing in Business
Buffett’s perspective on writing has resonated with other leaders in the business world. Jeff Bezos, founder of Amazon.com Inc., has implemented a shift away from traditional PowerPoint presentations, favoring dense six-page narrative memos. Bezos believes that writing “forces better clarity and rigor in thinking,” and he promotes the idea that good documents must undergo several revisions to ensure logical consistency.
This alignment among prominent business figures underscores the value placed on clear communication as a fundamental skill in the corporate environment. As leaders like Buffett and Bezos demonstrate, the ability to articulate thoughts effectively can have significant implications for success in the competitive business landscape.
By focusing on clarity and simplicity, Buffett not only enhances his own understanding but also sets a standard for others in the industry, highlighting the critical role that writing plays in effective decision-making and communication.
