Buffett’s Best Investment To Finish The Year
The Power of Relationships
As we finish the year with the stock market at record valuations, it is hard to find a “can’t miss” investment. However, Warren Buffett may have outlined the details for one that will pay significant dividends and allow you to live a longer, healthier life in the process.
At the Berkshire Hathaway annual meeting in May, Buffett was asked what he would do if he could have one more day with his business partner, Charlie Munger, who had recently passed away. They were partners for more than sixty years.
Buffett paused and reflected with a simple, yet sincere reply.
Be careful who you spend your limited quality time with. Live in a manner where you are happy doing what you’re doing and who you are doing it with. The super investors had fun doing anything, whether golf, tennis, problem solving or just talking. Obviously, they loved business and investment puzzles.
Buffett said they had more fun working on things that failed as they really had to think about solving the problem. The process of digging your way out was always fun.
With this background, Buffett said, “So if I only had one more day….we probably would have done the same.” He added he wouldn’t want to know he only had one more day. Instead, he would live each day with meaning.
Buffett said Munger went everywhere with his mind as he was interested in the world. Munger lived 99.9 years and was peaking right as he passed. He was a perpetual learning machine. When Munger was asked who he would want to meet from the last 2,000 years of history, he said he had already met them through his voracious readings. He didn’t need to have lunch with Ben Franklin to get to know him.
In considering Buffett’s comments, realize your relationships are quite possibly the most important investment you can make. In feeding this investment, determine what matters and live your life on those terms. Don’t waste time being mad. Never stop learning and keep challenging yourself.
When assessing relationships, ask, “Who do you want to spend your last day with? What would you want to ask them? When you look back, what would constitute a meaningful day?”
Then find a way to meet as often as possible. Don’t wait until a terminal illness hits.
This may seem like a quaint observation unique to two nonagenarians. However, the importance of healthy and long-lasting relationships extends well beyond Buffett and Munger.
The Harvard Study of Adult Development is a landmark analysis that tracked the lives of 724 men over 85 years.
The study determined that positive relationships are the most consistent predictor of happiness, health, and longevity. Furthermore, researchers concluded that relationships matter more than genetics when it comes to aging well and living a long life.
The study’s lead researcher, Dr. Robert Waldinger, summarized the findings in a TED talk, stating: “The clearest message we get from this study is this: Good relationships keep us happier and healthier. Period.”
The study also found that people who continue to work or volunteer after retirement tend to live longer and have better physical and mental health. For Buffett and Munger, this meant never retiring as they loved their given occupation.
These findings have important implications for individuals and communities looking to promote healthy aging and longevity as they found that strong social ties have profound effects on our physical health. They strengthen our immune system, reduce stress, lower our risk of dementia, and generally make us live longer. Additionally, they serve as insulation against mental health problems like depression and anxiety.
What Buffett and Munger knew for decades highlights the importance of networking, mentorship, and collaborative teamwork in professional growth. Building relationships with colleagues, seniors, and peers promotes knowledge-sharing and creates opportunities for new ventures and partnerships that defy time.
More importantly, in an age where digital interactions often replace face-to-face communication, building and maintaining relationships is challenging. However, making a conscious effort to invest in relationships can yield substantial dividends over time.
As we finish the year, know that relationships are the bedrock of human existence. And while the world often places great emphasis on material gains and career achievements, it is our relationships that hold the greatest potential for long-term investment.
Dave Sather is a Certified Financial Planner and the CEO of the Sather Financial Group, a fee-only strategic planning and investment management firm.