MONEY stocks

Warren Buffett Does These 3 Things Way Better Than You

Daniel Acker— Bloomberg Finance LP

The Oracle of Omaha has a much better understanding of the importance of having a long time horizon than most investors.

Let’s face it: When it comes to investing, Warren Buffett does everything better than everyone. Still, it’s worth reflecting on the specific attributes and skills that have made him arguably the greatest investor-businessman of his day — as some of them may be learnable.

We asked some of our analysts what these attributes were, and they came up with the following three:

Alex Dumortier: Decisiveness. Knowing when to act — and, even more importantly, when to stand pat — and being able to make that decision quickly and confidently. This is one of Warren Buffett’s competitive advantages.

In the acquisition criteria that he includes in every Berkshire Hathaway shareholder letter, he promises those who may be interested in selling their business [my emphasis]:

We can promise complete confidentiality and a very fast answer — customarily within five minutes — as to whether we’re interested.

In his 2003 shareholder letter, Buffet describes his purchase of Walmart subsidiary McLane:

To make the McLane deal, I had a single meeting of about two hours with Tom Schoewe, Wal-Mart’s CFO, and we then shook hands.

(He did, however, first call Bentonville.)

Similarly, Byron Trott, who wasBuffett’s preferred investment banker atGoldman Sachs, said he put together a deal with Buffett in a 20-minute phone call… for Berkshire to invest $5 billion in Goldman at the height of the financial crisis!

What’s the source of that decisiveness? First, an unparalleled knowledge of businesses and their valuation: Buffett has spent much of the past 60 years studying U.S. businesses. Second, a keen understanding of his own areas of expertise: if a company lies outside that area (such as technology firms), Buffett rejects it from consideration immediately, without the slightest hesitation or regret. Finally, I’m sure his confidence has grown over time alongside his track record of exceptional success.

Sean Williams: One of the biggest advantages Warren Buffett has in his arsenal is the recognition of the power of time and dollar-cost averaging.

A typical investor dreams of buying a stock and seeing it immediately take off post-purchase. Buffett, on the other hand, enjoys nothing more than watching the stock price of companies he wants to build a position in languish for years, because it gives him an opportunity to buy in at an attractive valuation through dollar-cost averaging.

One such company that Buffett has been dollar-cost averaging into is information technology product and service provider INTERNATIONAL BUSINESS MACHINES CORP. IBM 1.25% . Things have been downright ugly of late for Big Blue, which has had to boost its research and development spending to catch up to its peers in the cloud. In IBM’s latest quarter, its adjusted profits fells by 13%, while revenue dipped by 1% sans currency fluctuations.

However, Buffett’s vision always focuses on the long-term. He’s often been quoted as saying his favorite holding period is “forever.” IBM has successfully navigated multiple turnarounds before, and the company did deliver a better than 70% sales increase in cloud revenue during Q2. With free cash flow of $4.5 billion during the quarter and ample shareholder returns, Buffett can lean back and collect juicy dividends while waiting for a relatively cheap IBM to appreciate years down the road.

Although dollar-cost averaging isn’t a surefire way to profit (see Tesco), it’s given Buffett an extra tool in his arsenal to outperform the average investor.

Dan Caplinger: One of the essential philosophies that Warren Buffett both espouses and practices is the importance of having a long time horizon. As Sean notes, Buffett has said that his favorite time horizon is forever, and although the Oracle of Omaha hasn’t hesitated to push the sell button when an investment doesn’t go the way he planned, many of his most successful investments have come from holdings that he has owned for decades.

Buys like American Express and Coca-Cola have produced impressive gains over decades, and although it’s easy to criticize both companies for their current challenges and sluggish short-term performance, both remain giants of their respective industries, and have found promising ways to reposition themselves to find new growth. By sticking with companies with track records of overcoming past obstacles and thriving, Buffett can have confidence that short-term roadblocks won’t end up producing longer-term worries for investors.

As simple as that philosophy sounds, it can be hard for ordinary investors to have the discipline to ignore the potential ramifications of short-term news and instead stay focused on the long run. Buffett has turned that ability into the cornerstone of his investment philosophy, and it’s served him and his investors well throughout his lifetime.

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MONEY stocks

Why Warren Buffett Is Paying $32.3 Billion for This Aerospace Parts Maker

The deal, announced Monday, is Berkshire Hathaway's largest acquisition ever.

Warren Buffett is paying a hefty price for the biggest acquisition of his career, now that his Berkshire Hathaway has agreed to buy Precision Castparts PRECISION CAST PCP 0.24% in a merger valuing the maker of aerospace and other parts at $32.3 billion.

The purchase extends Berkshire’s transformation from a company largely dependent on insurance businesses into one resembling the broader U.S. economy, including a railroad, several industrial companies, utilities, a car dealership and consumer goods businesses.

It also joins several recent Buffett forays into unglamorous sectors, including a big stake in what is now Kraft Heinz KRAFT HEINZ CO. KHC 1.72% and the pending takeover of the Duracell battery business from Procter & Gamble PROCTER & GAMBLE COMPANY PG 0.82% .

“I’m not crazy about paying $30 billion for a $1.5 billion earnings stream of a cyclical company supplying airplane makers,” said Jeff Matthews, a principal at hedge fund Ram Partners and author of a book about Buffett. “I’d keep the $30 billion and wait for the next crisis.”

Read Next: Warren Buffett’s 25 Secrets to Success

Buffett, known for buying undervalued and often unloved companies, acknowledged the high price.

“In terms of price-earnings multiple going in, this is right there at the top,” he told CNBC television.

Berkshire is paying $235 per share for Precision Castparts, which represents a 21.2% premium over Friday’s closing price, and 18 times projected profit over a 12-month period.

The purchase eclipses Berkshire’s $26.5 billion takeover in 2010 of the 77.4% of the Burlington Northern Santa Fe railroad that it did not already own. Including assumed debt, Precision Castparts is valued at $37.2 billion.

Read Next: Inside Warren Buffett’s Brain

In morning trading, Precision Castparts shares rose $36.96, or 19.1%, to $230.84. Berkshire’s Class A shares fell $2,562.76, or 1.2%, to $212,900.

‘Credit to Todd Combs’

The purchase shows how hard it is to move the needle at Omaha, Nebraska-based Berkshire, whose own stock has lagged the Standard & Poor’s 500 in the last five years and which on Friday posted quarterly operating profit well below analyst forecasts.

Adding Precision Castparts would boost Berkshire’s overall profit by only about 8%.

It would also give Berkshire ownership of 10 companies that standing alone would be big enough to join the Fortune 500, plus 26.9 percent of Kraft Heinz Co.

Berkshire previously owned a 3% stake in Precision Castparts, which one of Buffett’s investment managers, Todd Combs, began amassing in 2012.

“You’ve got to give credit to Todd Combs for this deal,” said Buffett, who turns 85 on August 30. He has run Berkshire since 1965.

Precision Castparts generates 70% of sales by making nuts, bolts and other fittings for the aerospace industry, where booming commercial aircraft demand has led Airbus Group SE and Boeing to boost production.

But the company also makes parts for the energy industry, which has struggled as oil prices have fallen by more than half over the last year.

Prior to Monday, Precision Castparts’ shares had fallen 20% in 2015, and the purchase price is below the shares’ 52-week high of $249.05 set last September.

“Although the takeout price looks a little low to us, we doubt if PCP’s shareholders will say no to Warren Buffett,” RBC Capital Markets analyst Robert Stallard wrote.

Cash Hoard

Precision Castparts would become a unit of Berkshire, keeping its name and management as well as its headquarters in Portland, Oregon.

“We see a unique alignment between Warren’s management and investment philosophy and how we manage PCC for the long term,” Chief Executive Mark Donegan said in a statement.

Buffett said Berkshire would use about $23 billion of its own cash to finance the purchase, and borrow the rest.

While that would leave Berkshire with more than $40 billion of cash, twice the cushion Buffett wants, Buffett said it would be at least a year before Berkshire could pursue another “elephant” size transaction.

Kraft Heinz has proven among his most successful so far, as Buffett transformed a $9.5 billion investment in the former H.J. Heinz Co into a Kraft Heinz stake worth roughly $25.5 billion.

Precision Castparts would join several industrial companies that Buffett has bought in the last decade, including toolmaker Iscar, parts maker Marmon, and chemicals company Lubrizol.

The merger is expected to close in the first quarter of 2016. Credit Suisse and the law firms Cravath, Swaine & Moore and Stoel Rives advised Precision Castparts. The law firm Munger, Tolles & Olson advised Berkshire.

–Additional reporting by Jennifer Ablan, Greg Roumeliotis and Mike Stone in New York

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TIME deals

Warren Buffett Just Made One of His Biggest Deals Ever

It's a $37.2 billion cash transaction

Warren Buffett’s Berkshire Hathaway announced Monday that it has agreed to acquire Precision Castparts, a Portland, Ore.-based maker of aircraft components, for around $37.2 billion in cash. The $235 per share deal represents a 21.2% premium over Friday’s closing price for Precision Castparts stock.

It is the largest acquisition ever by Berkshire Hathaway BRK.A -0.09% , either alone or with a partner. Its prior record was the $36 billion billion purchase of Kraft Foods by Heinz, which is backed by both Berkshire and private equity firm 3G Capital.

Reports of the deal first leaked over the weekend, as is typical in a major Buffett transaction. Here was some of what Fortune‘s Steve Gandel wrote Sunday:

Precision’s highly specialized parts for airplane makers gives the company a “business moat,” a protection from competitors, that Buffett has said he looks for. The company gets 70% of its $10 billion in revenue from the aerospace industry, as airlines have ramped up demand for fuel-efficient jets. The acquisition is also a bet on the improving finances of the newly consolidated airline industry and the economy in general, which Buffett has long been positive on. For Precision, which has recently done a number of small acquisitions and plans to continue, the Berkshire acquisition will give it access to Buffett’s large checkbook.

Buffett told CNBC this morning that he first made the “high multiple” bid during last month’s Allen & Co. conference in Sun Valley, and that the recent “slump in oil and gas” may have helped his cause.

TIME CEO pay

This CEO Has The Highest Pay Compared To His Workers

Photograph by Jesse Burke for TIME CVS Health CEO Larry Merlo

A new SEC rule will reveal the disparity between CEO and median worker pay.

The Securities and Exchange Commission on Wednesday made waves in approving 3-2 a rule that will require most public companies to regularly disclose the ratio of chief executive pay to that of the average employee.

The rule came at the urging of Democrats like Senator Elizabeth Warren and worker groups like the AFL-CIO.

And it was approved despite opposition from the business community and Republicans.

The Chamber of Commerce is expected to sue over the rule. The head of its Center for Capital Markets Competitiveness David Hirschmann said that the rule “is more harmful than hurtful” and that the Chamber will seek to “clean up the mess. “To steal a line from Justice Scalia, this is pure applesauce,” SEC Republican Commissioner Daniel Gallagher said to Reuters. Companies argued that calculating median wages of workers is not cut-and-dry, especially for companies with lots of overseas workers, and that the new rule represented unnecessary and costly regulation.

Of course, missing from companies’ argument is mention that the rule will also reveal data that won’t necessarily reflect well on them. After all, average CEO compensation for the largest firms was $16.3 million in 2014, according to the Economic Policy Institute’s analysis of CEO stock options, salary, bonuses, restricted stock grants, and long-term incentive payouts, resulting in an overall CEO-to-worker pay ratio of 303-to-1 in 2014. (The ratio was 20-to-1 in 1965.) It’s that disparity that advocates of the rule want out in the open. They think it will put pressure on companies by drawing attention to the growing inequality between compensation for workers at the top of the company hierarchy and those at the bottom.

Companies with the highest ratios will likely have the most explaining to do. First up might be CVS.

According to a Payscale report, which calculated ratios based on the cash compensation of CEOs at the 100 highest-grossing public companies in the United States in 2013, CVS CEO Larry Merlo has the highest pay compared to his employees: $12,112,603—422 times as much as the average CVS employee, who earns $28,700 per year.

Next up is Goodyear CEO Richard Kramer, whose cash compensation of $15,086,645 resulted in a CEO-to-worker pay ratio at the company of 323-to-1. Third place is Disney’s Bob Iger who earned $12,112,603 in 2013—283 times more than the average Disney employee’s compensation of $60,300.

Interestingly enough, the lowest ratios occurred at Google, where CEO Larry Page earned $1 in 2013 and at Sears, where CEO Eddy Lampert, earned the same. Next lowest is HP’s Meg Whitman, whose cash compensation of $535,335 in 2013 was just six times as much as the average HP employee’s—$84,500, followed by Warren Buffett, who earned $485,606 in cash in 2013—nine times more than the pay for Berkshire Hathaway employees, who make, on average, $56,900.

You can see Payscale’s full list of CEO-to-worker ratios and their methodology here.

 

TIME Careers & Workplace

Advice for 20-Somethings From Warren Buffett, Bill Gates and Geniuses

Warren Buffett at Squawk Box interview on May 4, 2015.
Lacy O'Toole—CNBC/NBCU Photo Bank via Getty Images Warren Buffett at Squawk Box interview on May 4, 2015.

"Help your community, help other people"

If you’re young and your career is in its early days, you’ve likely been privy to plenty of career truisms and clichés.

But if “follow your passion,” “give 110%,” and “be true to yourself” just aren’t cutting it for you anymore, perhaps advice like, “don’t work too hard” and “relax” are more up your alley.

These successful people have offered some of the best — and oftentimes unconventional — advice for people in their 20s:

Warren Buffett: Exercise humility and restraint.

In a 2010 interview with Yahoo, Berkshire Hathaway chairman and CEO Warren Buffett said the best advice he ever received was from Berkshire Hathaway board-of-directors member Thomas Murphy. He told Buffett:

“Never forget Warren, you can tell a guy to go to hell tomorrow — you don’t give up the right. So just keep your mouth shut today, and see if you feel the same way tomorrow.”

During this year’s Berkshire Hathaway annual shareholders meeting, Buffett also told a curious seventh-grader that the key to making friends and getting along with coworkers is learning to change your behavior as you mature by emulating those you admire and adopting the qualities they possess.

Maya Angelou: Make your own path.

In her book, “The Best Advice I Ever Got,” Katie Couric quotes author, poet, dancer, actress, and singer Maya Angelou:

My paternal grandmother, Mrs. Annie Henderson, gave me advice that I have used for 65 years. She said, ‘If the world puts you on a road you do not like, if you look ahead and do not want that destination which is being offered and you look behind and you do not want to return to you place of departure, step off the road. Build yourself a new path.’

Richard Branson: Never look back in regret — move on to the next thing.

Richard Branson’s mother taught him that.

“The amount of time people waste dwelling on failures, rather than putting that energy into another project, always amazes me,” The Virgin Group founder and chairman told The Good Entrepreneur. “I have fun running ALL the Virgin businesses — so a setback is never a bad experience, just a learning curve.”

J.K. Rowling: Embrace failure.

J.K. Rowling, author of the best-selling children’s book series “Harry Potter,” knows a lot about achieving success — and failure.

“I don’t think we talk about failure enough,” Rowling recently told Matt Lauer on NBC’s “Today” show. “It would’ve really helped to have someone who had had a measure of success come say to me, ‘You will fail. That’s inevitable. It’s what you do with it.'”

Before Rowling became one of the wealthiest women in the world, she was a single mom living off welfare in the UK. She began writing about her now famous character, the young wizard Harry Potter, in Edinburgh cafes, and received “loads” of rejections from book publishers when she first sent out the manuscript, The Guardian reports.

“An exceptionally short-lived marriage had imploded, and I was jobless, a lone parent, and as poor as it is possible to be in modern Britain, without being homeless … By every usual standard, I was the biggest failure I knew,” Rowling said during a 2008 Harvard University commencement speech.

She went on to say that she considered her early failure a “gift” that was “painfully won,” since she gained valuable knowledge about herself and her relationships through the adversity.

Eric Schmidt: Say yes to more things.

In her book, “The Best Advice I Ever Got,” Katie Couric quotes Google executive chairman Eric Schmidt as advising:

Find a way to say yes to things. Say yes to invitations to a new country, say yes to meet new friends, say yes to learn something new. Yes is how you get your first job, and your next job, and your spouse, and even your kids.”

Marissa Mayer: Pick something and make it great.

In a 2011 interview with the Social Times, current Yahoo president and CEO Marissa Mayer revealed the best advice she ever received:

My friend Andre said to me, ‘You know, Marissa, you’re putting a lot of pressure on yourself to pick the right choice, and I’ve gotta be honest: That’s not what I see here. I see a bunch of good choices, and there’s the one that you pick and make great.’ I think that’s one of the best pieces of advice I’ve ever gotten.

Steve Jobs: Don’t just follow your passion but something larger than yourself.

In a recent Business Insider article, Cal Newport, author of “So Good They Can’t Ignore You,” referenced Steve Jobs biographer Walter Isaacson, who recalled an exchange he had with Jobs shortly before he passed. Jobs reportedly told Isaacson:

Yeah, we’re always talking about following your passion, but we’re all part of the flow of history … you’ve got to put something back into the flow of history that’s going to help your community, help other people … so that 20, 30, 40 years from now … people will say, this person didn’t just have a passion, he cared about making something that other people could benefit from.

Suze Orman: With success comes unhelpful criticism — ignore it.

In a LinkedIn article about the best advice she ever received, motivational speaker, author, and CNBC host Suze Orman wrote that success has often made her a target of nasty criticism “entirely disconnected from facts.” At first these attacks made her angry, but she eventually learned to ignore them.

“A wise teacher from India shared this insight: The elephant keeps walking as the dogs keep barking,” she wrote.

“The sad fact is that we all have to navigate our way around the dogs in our career: external critics, competitors, horrible bosses, or colleagues who undermine. Based on my experience, I would advise you to prepare for the yapping to increase along with your success.”

Bill Gates: Keep things simple.

In a 2009 interview with CNBC, Microsoft cofounder and chairman Bill Gates admired Warren Buffett’s ability to keep things simple.

You look at his calendar, it’s pretty simple. You talk to him about a case where he thinks a business is attractive, and he knows a few basic numbers and facts about it. And [if] it gets less complicated, he feels like then it’s something he’ll choose to invest in. He picks the things that he’s got a model of, a model that really is predictive and that’s going to continue to work over a long-term period. And so his ability to boil things down, to just work on the things that really count, to think through the basics — it’s so amazing that he can do that. It’s a special form of genius.

Arianna Huffington: Don’t work too hard.

In a LinkedIn post last year, The Huffington Post president and editor-in-chief Arianna Huffington revealed that she’s often asked if young people pursuing their dreams should burn the candle at both ends?

“This couldn’t be less true,” she writes. “And for far too long, we have been operating under a collective delusion that burning out is the necessary price for achieving success.”

She says she wishes she could go back and tell her younger self, “Arianna, your performance will actually improve if you can commit to not only working hard but also unplugging, recharging, and renewing yourself.”

Stewart Butterfield: Have an ‘experimental attitude.’

Stewart Butterfield, the cofounder of Flickr and chief executive of Slack, one of the fastest-growing business apps of all time, recently shared his best advice for young people with Adam Bryant of The New York Times:

“Some people will know exactly what they want to do at a very young age, but the odds are low,” he said. “I feel like people in their early- to mid-20s are very earnest. They’re very serious, and they want to feel like they’ve accomplished a lot at a very young age rather than just trying to figure stuff out. So I try to push them toward a more experimental attitude.”

George Stephanopoulos: Relax.

“Almost nothing you’re worried about today will define your tomorrow,” “Good Morning America” coanchor George Stephanopoulos told personal finance website NerdWallet.

“Down the road, don’t be afraid to take a pay cut to follow your passion. But do stash a few bucks in a 401(k) now.”

Maria Malcolm Beck: Remember that you won’t end up where you start.

Marla Malcolm Beck, CEO of Bluemercury, said in an interview with Adam Bryant of The New York Times that she always reminds students that “nobody ends up in the first job they choose out of college, so just find something that is interesting to you, because you tend to excel at things you’re interested in. But just go do it. You have nothing to lose.”

Her other piece of advice: Go into tech. “If you look at all the skill sets companies need, they involve a comfort level with technology,” she told Bryant.

T.J. Miller: Work harder than anyone else around you.

T.J. Miller, comedian and star of HBO’s “Silicon Valley,” told personal finance website NerdWallet this is truly the formula to success. “It worked for me, and I have mediocre talent and a horse jaw.”

Alexa von Tobel: Get up, dress up, and show up.

What Alexa von Tobel, founder and CEO of LearnVest and the author of New York Times bestseller “Financially Fearless,” means is that it’s important to wake up excited for what’s coming, dress the part, and always show up ready to go.

“As a new hire, you will likely find yourself in tons of new situations, and it’s up to you to figure out how to navigate them,” she wrote in an article for Business Insider.

“Remember that your manager is strapped for time, so know when to ask questions. Are you unsure of the objectives for an assignment? Asking her to clarify is crucial, since it’s pretty hard to make the mark if you don’t know where it even lies.

“On the flip side, avoid bombarding your manager with petty questions that could be answered by your peers or a quick Google search.”

Mark Bartels: Map out a timeline for yourself when you start a new job.

“We talk about budgets; we talk about planning your finances; but what a lot of people don’t do is plan out the next 12 to 18 or 24 months of their careers,” StumbleUpon CEO Mark Bartels tells Business Insider.

He says that lack of planning can be costly, both professionally and existentially, while having an agenda provides a metric for evaluating your success.

Hermione Way: Start your own business.

“There has never been an easier time to start a business,” Hermione Way, founder of WayMedia and star of Bravo’s “Start-Ups: Silicon Valley,” told personal finance website NerdWallet.

“There are so many free online tools. Just start, and if you fail you can always go and get a normal job, but you will learn so much along the way it will be a great experience.”

John Chen: Being a ‘superstar’ can hurt your career.

“Most employees think that the best way to show value to their boss and get promoted is to aggressively claim credit and ownership over everything they do,” BlackBerry CEO John Chen wrote in a LinkedIn post earlier this year.

“While it’s important to be recognized for what you do and the value you add, grabbing the glory is going to turn off your coworkers.” It can also turn off your boss, he warns.

“Trying too hard to show you’re a superstar tells me that you only care about what’s best for you, and not the company as a whole.”

Salli Setta: Never eat lunch alone.

Red Lobster president Salli Setta tells Business Insider it’s important to get out from behind your screen at lunchtime because lunch is a prime networking opportunity.

The benefit of always having lunch plans with someone are two-fold: You can get information that will help you “think about your job differently,” and you also get on your companion’s radar.

“It isn’t about saying ‘hi, what are we going to talk about, let’s talk about sports,'” Setta says. “It’s about identifying the object of this lunch in your mind” and going in armed with “a couple of things that you want to ask, and a couple of things you want to share.”

Deepak Chopra: Embrace the wisdom of uncertainty.

In a LinkedIn post last year, Deepak Chopra, popular author and founder of The Chopra Foundation said he wished he embraced the wisdom of uncertainty at a younger age.

“At the outset of my medical career, I had the security of knowing exactly where I was headed,” he wrote. “Yet what I didn’t count on was the uncertainty of life, and what uncertainty can do to a person.”

“If only I knew then, as I know now, that there is wisdom in uncertainty — it opens a door to the unknown, and only from the unknown can life be renewed constantly,” he wrote.

Cynthia Tidwell: Be patient enough to learn, but impatient enough to take risks.

Cynthia Tidwell, CEO of insurance company Royal Neighbors of America, told Business Insider her favorite piece of advice for young people is be patient enough to learn, but impatient enough to take risks. “I encourage taking risks,” she said. “What is the worst thing that can happen? You can go back and do what you were doing before.”

Brian Chesky: Don’t listen to your parents.

Brian Chesky, CEO of Airbnb, said in an interview with The New York Times’ Adam Bryant that recent grads shouldn’t listen to their parents.

“They’re the most important relationships in your life, but you should never take your parents’ career advice, and I’m using parents as a proxy for all the pressures in the world,” he told Bryant. “I also say that whatever career you’re in, assume it’s going to be a massive failure. That way, you’re not making decisions based on success, money and career. You’re only making it based on doing what you love.”

David Melancon: Ask 3 important questions at the end of every interview.

When a hiring manager turns the tables at the end of an interview and asks, “do you have any questions for me?” David Melancon, CEO of btr., a corporate-rankings platform that focuses on holistic performance, says there are three questions far more important for you to ask than what the salary is or what the job requirements are.

The questions are:

1. What qualities will a person in this role need to be successful in your company culture — as an individual and as a worker?

2. What’s the company’s position on education and development, including student-loan reimbursement and tuition assistance?

3. How does the company keep employees excited, innovative, and motivated?

Diane von Furstenberg: Keep it real.

In a recent interview with Adam Bryant of The New York Times, fashion designer Diane von Furstenberg says she has learned that trusting yourself is the key to success.

“In order to trust yourself, you have to have a relationship with yourself,” she told Bryant. “In order to have a relationship with yourself, you have to be hard on yourself, and not be delusional.”

Rick Goings: Be nice to everyone.

Rick Goings, CEO of home-products company Tupperware Brands, which brought in $2.6 billion in revenue last year, shared his favorite pearls of wisdom for young people with Business Insider. One of them was be nice to everyone when you go on a job interview.

“I like to check with the driver, our receptionist, and my assistants on how the candidate interacted with them. How you treat others means the world!”

This article originally appeared on Business Insider

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TIME Dairy Queen

Meet the Rogue Dairy Queen That Serves Whatever It Wants

Two-Story Dairy Queen The First To Open In Manhattan
Andrew Burton—Getty Images

Pick up a Polish sausage and a Mr. Maltie

The Dairy Queen in downtown Moorhead, Minn., has that quintessential mid-century look with slanted roof and red and white striped awning. It stands out for more than its retro look. The location serves its own unique mix of items, shunning its corporate overlord and the standard menu fare.

The unique setup is a by-product of a 66-year-old contract, reports the Associated Press. The DQ was set up in 1949, and the deal allows the location to dish out treats long since removed from other DQ menus as well as the owner’s choice of other add-ons.

“If we changed to the new corporate way, virtually all our food items would be gone,” owner Troy DeLeon, told the Associated Press. “The corporate way is everything exactly the same.”

This includes meal items such as barbecue sandwiches and Polish sausages as well as the location’s much-loved frozen treats, with unique toppings (some discontinued by corporate). The favorite dessert items include: the Mr. Maltie, a chocolate malt on a stick; the Monkey Tail, a chocolate-covered frozen banana; and the Chipper Sandwich, a chocolate cookie, vanilla ice-cream sandwich dipped in chocolate.

Dairy Queen is owned by Warren Buffett’s Berkshire Hathaway.

TIME Careers & Workplace

This Is Warren Buffett’s Best Investment Advice

Warren Buffett during an interview in Omaham, Neb. on May 4, 2015.
Nati Harnik—AP Warren Buffett during an interview in Omaham, Neb. on May 4, 2015.

Go all-in on this amazing asset and you will see returns beyond anything you could dream of

Inc. logo

Warren Buffett is considered to be one of the greatest investors that has ever lived and is consistently ranked among the wealthiest people in the world with a net-worth north of $72 billion. He is well known for his commitment to value investing, and when he gives recommendations, people listen.

The other day I came across a quote from him where he was advising people to invest as much as possible in something that everyone has access to, something , he says, in which we can never invest too much.

What is this amazing asset he’s so bullish on?

It’s you.

“Invest in as much of yourself as you can, you are your own biggest asset by far.” — Warren Buffett

You will never get a better return on life than when you truly invest in yourself. Here are some ways to help you make the most of your investment.

Stay healthy on all three planes: mind, body, spirit.

“You only get one mind and one body. And it’s got to last a lifetime. Now, it’s very easy to let them ride for many years. But if you don’t take care of that mind and that body, they’ll be a wreck forty years later, just like the car would be.” — Warren Buffett

It all starts here. You need to be firing on all cylinders, or else you won’t be able to get the most of out your life.

This doesn’t have to be difficult or time consuming. Just be mindful about improving yourself. Here are some simple ways to do it:

  • Mind: read a book (even if it’s just one page a day), journal, come up with ideas.
  • Body: exercise (even if it’s just for 7 minutes), eat good food, drink plenty of water, get a good night’s sleep.
  • Spirit: pray (it doesn’t matter if you’re religious or not) or just says ‘thanks’, be kind to people, write a gratitude list.

Cultivate positive habits and stick to them with a daily routine.

How much better do you feel on the days that you do something good for yourself? Perhaps it’s the days that you exercise or maybe when you are really focused at work. Your days just seem to go smoother, don’t they?

You can have that every day. It’s just a matter of deciding what you want to do and following through with it.

Start small. Decide on one positive habit that you can start doing today, and then do it. Then do it again tomorrow. Once you’ve mastered one habit, you can put that momentum toward building a way to have the best day ever (every single day).

Never stop learning.

One of the greatest secrets to Warren Buffett’s success is that he is continuously learning. Charlie Munger, the vice chairman of Buffett’s Berkshire Hathaway Corporation, once said this about his legendary colleague:

“Warren Buffett has become one hell of a lot better investor since the day I met him, and so have I. If we had been frozen at any given stage, with the knowledge we had, the record would have been much worse than it is. So the game is to keep learning, and I don’t think people are going to keep learning who don’t like the learning process.”

Most people think that real learning ends when school is over but they are selling themselves way short. Life should be about continuous learning, and there are many ways for you to do this:

  • Attend conferences, seminars, and meet-ups.
  • Take a free online course.
  • Talk to people and ask them questions (listen more than you talk).
  • Research something you are interested in.
  • Travel.

Surround yourself with excellence.

“It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.” — Warren Buffett

It’s been said that you’re the average of the five people you spend the most time with. In other words, who you spend time with influences the person you become.

Take a look at the people in your life right now and ask yourself these questions:

  • Are they making you better or are they bringing you down?
  • Are they mostly positive or are they typically quite negative?
  • Do you feel better when you are around them or do you feel worse?

If someone is a negative influence on you, then you have to kick them to the curb (or severely limit your time spent with them). This can be very hard when it’s a family member or co-worker, but if you want to become the best version of you, you are going to have to take action.

Spend time getting to know yourself.

“I insist on a lot of time being spent, almost every day, to just sit and think. That is very uncommon in American business. I read and think. so I do more reading and thinking, and make less impulse decisions than most people in business. I do it because I like this kind of life.” — Warren Buffett

Your time is extremely valuable and precious. Spend some of it getting to know yourself better. These practices can help you find out who you truly are:

Do what you love to do.

“There comes a time when you ought to start doing what you want. Take a job that you love. You will jump out of bed in the morning. I think you are out of your mind if you keep taking jobs that you don’t like because you think it will look good on your resume. Isn’t that a little like saving up sex for your old age?” — Warren Buffett

You only have one life to live, why not live it to the fullest?

Invest as much as you can in yourself starting right now, and you will see returns beyond anything you could dream of.

This post is in partnership with Inc., which offers useful advice, resources and insights to entrepreneurs and business owners. The article above was originally published at Inc.com.

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TIME Banking

This Is the Most Valuable Bank In The World

A woman walks past teller machines at a Wells Fargo bank in San Francisco, California.
Robert Galbraith—Reuters Wells Fargo promised to enact new Temporary Leave Underwriting Guidelines and educate their loan officers.

Forget the big investment banks, it's all about the basics here.

Forget those flashy big-name banks that always snag headlines. The title for world’s most valuable bank goes to Wells Fargo & Co.

The San Francisco-based bank recently zoomed past Industrial & Commercial Bank of China as the bank with the largest market value worldwide, reported the Wall Street Journal. Wells Fargo is worth $301.6 billion. That’s $40 billion more than J.P. Morgan Chase and almost $120 more than Citigroup.

As China’s stock market struggles and the relative strength of the U.S. economy continues to grow, it’s been a boon to American banks like Wells Fargo. ICBC and Wells Fargo have continually battled for the global top spot, and Wells Fargo first passed it in value in 2013. But, Chinese banks are facing new growth obstacles as the economy inches along, slowing down their expansion significantly from long-running double-digit growth. ICBC shares have fallen about 19% in the past three months, the WSJ reported.

Wells Fargo’s stock has gained 12.4% so far this year, making it the seventh-largest stock in the Standard & Poor’s 500 index. However, when it comes to the largest U.S. bank by assets, that title is still held by J.P. Morgan.

Wells Fargo’s booming market value is a credit to its relatively simple style of business. It doesn’t rely on subprime loans, complex derivatives or risky trades funded by borrowed money. Instead, it focuses on its core units like consumer lending, banking services and mortgage origination. That straight-forward approach may be why Warren Buffett has long been the bank’s largest shareholder (and one of Fortune’s World’s Most Admired Companies).

READ MORE: The big banks of the Fortune 500 that keep getting bigger.

TIME Warren Buffett

Warren Buffett Donates $2.8 Billion … Again

Berkshire Hathaway Inc. CEO Warren Buffett Interview
Bloomberg—Bloomberg via Getty Images Berkshire Hathaway CEO Warren Buffett is giving away $2.8 billion as part of his annual donation pledge.

Five foundations will benefit from his annual gift

Billionaire investor Warren Buffett is the gift that keeps on giving.

The Berkshire Hathaway CEO on Monday donated $2.8 billion to five foundations as a part of his annual pledge.

Around 20.6 billion shares of Berkshire Hathaway class B stock will be donated to the Bill and Melinda Gates, Susan Thompson Buffett, Sherwood, Howard G. Buffett and NoVo Foundations, the company announced in a statement.

It marks Buffett’s tenth annual gift to charities. Last year, Buffett set a personal philanthropy record when he donated an equivalent $2.8 billion.

Buffett’s donation follows the recent headline-making news by Alwaleed bin Talal. The Saudi Prince said he plans to give away his entire fortune worth $32 billion to philanthropic causes over the next few years.

TIME psychology

How Warren Buffett Keeps Up With Information

Warren Buffett in an interview on May 4, 2015.
Lacy O'Toole—CNBC/NBCU Photo Bank via Getty Images Warren Buffett in an interview on May 4, 2015.

Shane Parrish writes Farnam Street

It's about having filters

A telling excerpt from an interview of Warren Buffett (below) on the value of reading. Seems like he’s taking the opposite approach to Nassim Taleb in some ways.

Interviewer: How do you keep up with all the media and information that goes on in our crazy world and in your world of Berkshire Hathaway? What’s your media routine?

Warren Buffett: I read and read and read. I probably read five to six hours a day. I don’t read as fast now as when I was younger. But I read five daily newspapers. I read a fair number of magazines. I read 10-Ks. I read annual reports. I read a lot of other things, too. I’ve always enjoyed reading. I love reading biographies, for example.

Interviewer: You process information very quickly.

Warren Buffett: I have filters in my mind. If somebody calls me about an investment in a business or an investment in securities, I usually know in two or three minutes whether I have an interest. I don’t waste any time with the ones which I don’t have an interest.

I always worry a little bit about even appearing rude because I can tell very, very, very quickly whether it’s going to be something that will lead to something, or whether it’s a half an hour or an hour or two hours of chatter.

This piece originally appeared on Farnam Street.

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