{"id":2520,"date":"2015-04-21T07:00:37","date_gmt":"2015-04-20T23:00:37","guid":{"rendered":"http:\/\/www.futurethink.com.sg\/?p=2520"},"modified":"2017-05-06T16:55:06","modified_gmt":"2017-05-06T08:55:06","slug":"can-learn-warren-buffet-jim-rogers-hiring-right-people","status":"publish","type":"post","link":"https:\/\/www.futurethink.com.sg\/devsite\/can-learn-warren-buffet-jim-rogers-hiring-right-people\/","title":{"rendered":"What HR &#038; Hiring Managers Can Learn From Warren Buffett &#038; Jim Rogers on Hiring the Right People"},"content":{"rendered":"<div id=\"dslc-theme-content\"><div id=\"dslc-theme-content-inner\"><div style=\"padding-bottom:20px; padding-top:10px;\" class=\"hupso-share-buttons\"><!-- Hupso Share Buttons - http:\/\/www.hupso.com\/share\/ --><a class=\"hupso_counters\" href=\"http:\/\/www.hupso.com\/share\/\"><img decoding=\"async\" src=\"https:\/\/static.hupso.com\/share\/buttons\/share-small.png\" style=\"border:0px; padding-top:2px; float:left;\" alt=\"Share Button\"\/><\/a><script type=\"text\/javascript\">var hupso_services_c=new Array(\"twitter\",\"facebook_like\",\"facebook_send\",\"google\",\"pinterest\",\"email\",\"print\",\"linkedin\");var hupso_counters_lang = \"en_US\";var hupso_image_folder_url = \"\";var hupso_url_c=\"\";var hupso_title_c=\"What HR &amp; Hiring Managers Can Learn From Warren Buffett &amp; Jim Rogers on Hiring the Right People\";<\/script><script type=\"text\/javascript\" src=\"https:\/\/static.hupso.com\/share\/js\/counters.js\"><\/script><!-- Hupso Share Buttons --><\/div><p><script>\n  (function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){\n  (i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o),\n  m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m)\n  })(window,document,'script','\/\/www.google-analytics.com\/analytics.js','ga');<\/p>\n<p>  ga('create', 'UA-36052328-1', 'auto');\n  ga('send', 'pageview');<\/p>\n<p>setTimeout(\u201c_gaq.push([\u2018_trackEvent\u2019, \u201915_seconds\u2019, \u2018read\u2019])???,15000);\n<\/script><\/p>\n<p>Warren Buffett, the CEO of Berkshire Hathaway, is consistently ranked as one of the world\u2019s wealthiest, successful and most influential persons. <\/p>\n<p>One of Buffett\u2019s famous quotes is \u201cRisk comes from not knowing what you\u2019re doing&#8221;.<\/p>\n<p>Buffett should know it better than anyone else. He has seen his wealth skyrocket from practically nothing back in the 1950\u2019s to billions today. Buffet\u2019s investment philosophy has always been in Value Investing. But how does Buffett do it?<\/p>\n<p>Buffet gave the following answer when he was asked about his sources of information during the Annual Meeting of Berkshire Hathaway in 2003:<\/p>\n<p>\u201cWe read a lot &#8212; we read daily publications, we read weekly or monthly publications, we read annual reports, we read 10-Ks and we read 10-Qs. Fortunately, the investment business is a business where knowledge accumulates. Everything you learn when you\u2019re 20 or 30, you may tweak some as you go along, but it all kind of builds into a knowledge base that\u2019s useful forever.&#8221;<\/p>\n<p>Without a doubt, Buffett spends an enormous amount of time reading and researching the executives, the company and the business he is interested in before making any investments in it. It has been reported that he spends days and even weeks pouring over trade reports, annual reports, the target company\u2019s business strategies, its management philosophies, its competitors and the long term growth potential of the business. He does all of that before he even considers investing in the company and the business.<\/p>\n<p>Buffett ensures that he does his homework thoroughly before making any investment moves. He first invests time, energy and effort upfront to understand the target company and its business inside out before putting any money down for the target company.<\/p>\n<p>\u201cNever invest in a business you cannot understand&#8221; is Buffet\u2019s famous philosophy. It clearly underscores his investment philosophy and explains why most of his investments have brought him huge returns over the years.<\/p>\n<p>Jim Rogers, another famed investor who made his profits in Commodities also had this to say:<\/p>\n<p>\u201cThe best advice I ever got was on an airplane. It was in my early days on Wall Street. I was flying to Chicago, and I sat next to an older guy. <\/p>\n<p>Anyway, I remember him as being an old guy, which means he may have been 40. He told me to read everything. If you get interested in a company and you read the annual report, he said, you will have done more than 98% of the people on Wall Street. <\/p>\n<p>And if you read the footnotes in the annual report you will have done more than 100% of the people on Wall Street. <\/p>\n<p>I realized right away that if I just literally read a company\u2019s annual report and the notes \u2014 or better yet, two or three years of reports \u2014 that I would know much more than others. <\/p>\n<p>Professional investors used to sort of be dazzled. Everyone seemed to think I was smart. I later realized that I had to do more than just that. I learned that I had to read the annual reports of those I am investing in and their competitors\u2019 annual reports, the trade journals, and everything that I could get my hands on. <\/p>\n<p>But I realized that most people don\u2019t bother even doing the basic homework. And if I did even more, I\u2019d be so far ahead that I\u2019d probably be able to find successful investments.&#8221;<\/p>\n<p>Do you perform your due diligence before hiring the candidate?<\/p>\n<p>In our context of interviewing and selection, you need to prepare yourself if you are the interviewer and your preparation must be done prior to meeting any of your candidates for a job interview \u2013 just like what Buffett and Rogers do before putting their money down for any investments. <\/p>\n<p>So if you still believe that your people are your greatest assets, then you need to ensure that preparation is done upfront prior to any human capital investments. <\/p>\n<p>\u201cRisk Comes from Not Knowing What You\u2019re Doing???. Nothing is more applicable to our context of interviewing and selection than this. <\/p>\n<p>If you don\u2019t know what you\u2019re doing, and you don\u2019t know who you are hiring, then your risks of ending up with a bad hire increases exponentially.<\/p>\n<div style=\"padding-bottom:20px; padding-top:10px;\" class=\"hupso-share-buttons\"><!-- Hupso Share Buttons - http:\/\/www.hupso.com\/share\/ --><a class=\"hupso_counters\" href=\"http:\/\/www.hupso.com\/share\/\"><img decoding=\"async\" src=\"https:\/\/static.hupso.com\/share\/buttons\/share-small.png\" style=\"border:0px; padding-top:2px; float:left;\" alt=\"Share Button\"\/><\/a><script type=\"text\/javascript\">var hupso_services_c=new Array(\"twitter\",\"facebook_like\",\"facebook_send\",\"google\",\"pinterest\",\"email\",\"print\",\"linkedin\");var hupso_counters_lang = \"en_US\";var hupso_image_folder_url = \"\";var hupso_url_c=\"\";var hupso_title_c=\"What HR &amp; Hiring Managers Can Learn From Warren Buffett &amp; Jim Rogers on Hiring the Right People\";<\/script><script type=\"text\/javascript\" src=\"https:\/\/static.hupso.com\/share\/js\/counters.js\"><\/script><!-- Hupso Share Buttons --><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Warren Buffett, the CEO of Berkshire Hathaway, is consistently ranked as one of the world\u2019s wealthiest, successful and most influential persons. One of Buffett\u2019s famous quotes is \u201cRisk comes from not knowing what you\u2019re doing&#8221;. Buffett should know it better than anyone else. He has seen his wealth skyrocket from practically nothing back in the 1950\u2019s [&hellip;]<\/p>\n","protected":false},"author":68,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,4,5,9],"tags":[],"yst_prominent_words":[],"class_list":["post-2520","post","type-post","status-publish","format-standard","hentry","category-blogs","category-interviewing","category-leadership-management","category-strategy","pmpro-has-access"],"_links":{"self":[{"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/posts\/2520","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/users\/68"}],"replies":[{"embeddable":true,"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/comments?post=2520"}],"version-history":[{"count":3,"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/posts\/2520\/revisions"}],"predecessor-version":[{"id":3540,"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/posts\/2520\/revisions\/3540"}],"wp:attachment":[{"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/media?parent=2520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/categories?post=2520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/tags?post=2520"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.futurethink.com.sg\/devsite\/wp-json\/wp\/v2\/yst_prominent_words?post=2520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}