“It’s a lot tougher to be an operator. I mean it is. It’s easier to sit in a room like I do and play around with money. It’s just an easier life.” – Warren Buffett

Warren is the greatest investor of all time. But there’s one job that’s too hard, even for him: operating a business.

Warren explains why and more in the final hour of Berkshire’s recent annual meeting.

Investors vs. Operators

Warren has enormous respect for people that operate businesses. After all, he relies on them to run the companies he invests in.

But talented though he is, Warren isn’t interested in running an operating business.

“I’ve been able to choose what I do with my day to an extraordinary degree compared to being a business operator,” he explained.

Just this morning, I was thinking about how much easier my life is than a founder’s.

I have 34 brilliant, hard working people toiling away on my behalf, day and night. Add in their co-founders, and it may be as many as 100. And that’s not even counting all the wonderful people who work for them!

With all these folks on my side, how can I lose? All I have to do is sit back and cash the checks.

I have incredible respect for people who start and run companies. But give me the choice between an easy job and a hard one, and I’ll take the easy job every time.

How Great Investors Are Made

Whenever someone asks him what makes a great investor, Warren gives the same response: reading. He’s been a voracious reader since childhood.

“…I read every book there was on investments, literally, in the Omaha public library.”

I try to read a lot as well. I also take notes on every book I read.

I have notes going back 7 years. It’s like a personalized Cliff’s Notes with the key lessons from countless great books, available to me at any time.

Right now, I’m reading Damn Right!, a book about Charlie Munger.

The End of an Era

At the end of the meeting, Warren shocked the 40,000 people in attendance. He announced his retirement as CEO, effective at the end of the year.

He’ll be succeeded by his hand picked successor, Greg Abel. Greg has been working alongside Warren for years, preparing for this moment.

The entire crowd gave Warren a standing ovation that lasted for minutes on end. It would’ve gone even longer if Warren hadn’t ask them to stop!

Warren will stay on as Chairman. He’ll be there to advise Greg on big decisions.

But the final word will be Greg’s.

Wrap-Up

I’m really sorry to see Warren go.

He’s been my idol since I was a kid. I’ve read countless books about him, and plan to read many more.

But he’s a smart man. He’s not going to force people to carry him out of Berkshire when he can no longer do the job.

Since he’ll still be Chairman, I’m hoping he’ll be there to answer some questions at next year’s meeting.

I hope you enjoyed this four part series on the Berkshire annual meeting. We’ll be back to our regular schedule on Monday.

Have a great weekend, everyone!

More on investing:

The Berkshire Annual Meeting (Part 3)

The Berkshire Annual Meeting (Part 2)

The Berkshire Annual Meeting (Part 1)

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