_edited.jpg)
In the pursuit of success, we often focus on strategies, skills, and knowledge. We seek the perfect investment formula, the groundbreaking business idea, or the revolutionary technology. Yet one of the world's most successful investors, Warren Buffett, suggests something far simpler and more profound as the foundation for achievement: deliberate habit formation.
Photo: Getty Images
The Oracle's Wisdom on Character Development
Warren Buffett, known as the "Oracle of Omaha," has accumulated wisdom alongside his billions. With a net worth of over $100 billion and a reputation as one of history's greatest investors, when Buffett speaks, the wise listen. Yet his most valuable advice isn't about stock picking or business acquisition—it's about something far more fundamental: how we shape our character through our habits.
In a remarkably practical suggestion to students, Buffett offered this exercise:
"Pick out the person in the class that you admire the most and then write down why you admire them. Put down a list of qualities and then put down the one you can stay on the least in the whole group. Put down the qualities that turn you off in that person and look at that list."
This simple reflection exercise reveals something profound: the qualities we admire in others are rarely innate talents or circumstances of birth. They're habits and character traits that can be cultivated.
"The qualities of the first one that you admire are qualities that you with a little practice can make your own and which if practiced will become habit forming."
The Science Behind Buffett's Wisdom
Modern neuroscience and psychology validate Buffett's emphasis on habits. Research shows that approximately 40-45% of our daily actions aren't decisions but habits—automated behaviors that bypass our conscious decision-making process.
These habits literally reshape our brain's neural pathways through neuroplasticity, creating what neurologists call "default mode pathways." Once formed, these pathways require significantly less energy to activate than new behaviors, which is why established habits can feel almost impossible to break.
This scientific reality aligns perfectly with Buffett's observation:
"The chains of habit are too light to be felt until they're too heavy to be broken."
The Window of Opportunity
What makes Buffett's advice particularly powerful is his recognition of the special opportunity that exists in youth:
"At my age I can't change any of my habits. I mean I'm stuck but at your age you know you will have the habits 20 years from now that you decide to put into practice today."
This isn't merely Buffett being humble. Research on neuroplasticity shows that while habit formation is possible throughout life, the brain's malleability and adaptability gradually decrease with age. The neural pathways become more established, making new habit formation increasingly difficult—though never impossible.
The Benjamin Franklin Connection
Buffett isn't the first successful American to recognize the power of deliberate habit formation. He explicitly references one of America's founding fathers:
"Ben Franklin did that a hundred years ago and it still works today and if you do that you'll find that you convert all your horsepower into output."
Franklin famously created a system of 13 virtues he wished to develop, along with a rigorous tracking system to monitor his progress. Each week, he would focus on developing one virtue until he had cycled through all 13, then start again. This methodical approach to character development helped transform him from a runaway apprentice to one of the most accomplished Americans in history.
The Four-Step Process for Character Development
Building on Buffett's wisdom and Franklin's methodology, here's a practical approach to deliberate character formation:
1. Identify Your Character Models
Follow Buffett's advice by identifying both positive and negative examples. Who embodies the character you aspire to develop? Whose behavior serves as a warning of traits to avoid?
These models can be people you know personally or historical/public figures whose lives and choices you can study. The key is to be specific about what qualities you admire or wish to avoid.
2. Define Specific Habits to Cultivate
Translate character qualities into specific, observable habits. For example:
Integrity becomes "I will do what I say I will do, even when it's inconvenient."
Discipline becomes "I will complete my three most important tasks before checking social media each day."
Genuine interest in others becomes "I will ask thoughtful questions and listen without planning my response."
3. Create a Tracking System
Following Franklin's example, develop a simple system to monitor your progress. This could be a daily checklist, a journal entry, or a habit-tracking app. The key is consistency—your tracking system should be something you can maintain indefinitely.
4. Review and Refine Regularly
Schedule monthly reviews of your progress. Which habits are becoming easier? Where are you still struggling? What environmental factors help or hinder your progress? Use these insights to refine your approach.
The Compounding Effect of Character
Just as Buffett understands the power of compound interest in financial investments, the same principle applies to character development. Small, consistent improvements in your habits create compound returns in your character over time.
A 1% daily improvement in your patience, discipline, or integrity might seem insignificant in the moment. But compounded over years, these small improvements create dramatic differences in who you become.
The Ultimate Investment
Warren Buffett has made billions by identifying undervalued assets and investing in them for the long term. Yet his advice on habit formation suggests that the most valuable investment isn't in stocks or businesses—it's in your own character.
Unlike market investments, which are subject to forces beyond your control, investments in your character provide returns that are largely within your influence. The habits you cultivate today shape the person you become tomorrow, creating compound returns that no market crash can diminish.
As Buffett's own teacher, Benjamin Graham, once said: "The investor's chief problem—and even his worst enemy—is likely to be himself." By investing in your character through deliberate habit formation, you address the root cause of most failures, both in investing and in life.
Ready to live a life of purpose and impact? Subscribe to our newsletter for weekly insights, tips, and stories to help you make a difference and achieve your goals!
Watch Warren Buffett:
Source: Buffett & Gates on Success
Comments