Warren Buffett gained his reputation as a legendary investor and business leader not just for his financial expertise but also for his ability to form successful business relationships.
Buffett, the CEO of Berkshire Hathaway (BRK.A), has consistently compared successful marriages to thriving business partnerships because he sees them as grounded in similar principles. His straightforward, at times humorous, advice on relationships offers practical wisdom for anyone looking to build lasting connections, whether personal or professional.
Key Takeaways
- According to Buffett, low expectations are the key to lasting marriages and business partnerships.
- He has said that selecting the right spouse is one of the most important decisions you can make.
- He has argued that people tend to become like the people they spend time with, recommending that people associate themselves with those who are better than them.
The Power of Low Expectations
Pushing back on the conventional wisdom that suggests one should have high standards going into a relationship, Buffett advises the opposite. “Do you look for brains? Do you look for humor? Do you look for character? Do you look for beauty? No,” he told students at the University of Georgia’s Terry College of Business in 2001. “You look for low expectations. That is the marriage that’s going to last—if you both have low expectations.”
His advice isn’t about settling for less, but about creating a realistic foundation for your relationships. Buffett said he applies the same principle to his business partnerships. “I want my partners to be on the low side on expectations coming in because I want the marriage to last,” he said. “It’s a financial marriage when they join me at Berkshire, and I don’t want them to think I’m going to do things that I’m not going to do.”
Buffett suggests that disappointment often stems from unrealistic expectations. By starting with modest expectations, both parties can be pleasantly surprised rather than consistently disappointed.
Choose Your Partners Wisely
Buffett doesn’t mince words when discussing the significance of choosing the right spouse. “The most important thing is finding the right spouse. If you make the wrong decision on that, you will regret it,” he said in a 2008 conversation with Ivey Business School students. “If you make that one decision right, I will guarantee you a good result in life.”
While Buffett has made billions in the financial world, he still says personal relationships serve as the foundation for overall success and happiness in life.
Buffett famously chooses companies with stable fundamentals combined with leadership teams that share his principles and vision for the long term. He has said that business partnerships should be approached with the same thoughtfulness as one might have when entering a marriage. For both, he says it’s important to have values and objectives that are aligned.
Associate With People Better Than Yourself
Perhaps more importantly, Buffett said in 2017 that good relationships are crucial because you become more like your partners. “You will move in the direction of the people that you associate with. So it’s important to associate with people that are better than yourself,” he said in a conversation with Bill Gates at Columbia University. “And the most important person by far in that respect is your spouse. I can’t overemphasize how important that is.”
The right partner in business and life doesn’t just stand by your side—they inspire you to become better. Likewise, in the business world, surrounding yourself with colleagues who can bring fresh perspectives and a strong sense of ethics can create success unlikely to be found on your own. It’s why Buffett says he always valued the contrarian thinking of his longtime business partner, Charlie Munger, and why he carefully selects business partners who complement rather than merely echo his own approach.
The Bottom Line
Warren Buffett says that both marriages and business partnerships depend on genuine interactions and realistic expectations, and he encourages people to select personal and professional partners carefully. Successful relationships require mutual understanding and shared values, he argues, rather than unrealistic standards or expectations.