The Lousy Investor Episode 13: Warren Buffett’s 25/5 Rule
To watch the podcast, please click here.
Years ago, it was reported that Warren Buffett passed down a very simple but effective strategy to his personal pilot around how to be very productive with his goal setting.
As the story goes, Warren told his pilot to write down 25 goals/aspirations that he had for his life. Once the pilot completed that activity, Warren told him to circle the 5 most critical elements on that list. Once the pilot executed those directions, Warren instructed him to devote all of his time, effort, and energy to accomplishing those goals.
Personally, I find that to be an extremely helpful way to think about organizing life and I have used it for a number of years. Warren Buffett was asked about this story at an annual Berkshire meeting in 2013 and he seemed to have no recollection of the story at all. It turns out that we cannot directly attribute the mental framework to Warren Buffett, but I certainly find it useful anyways!
Thanks for watching!