“Risk comes from not knowing what you’re doing”
The more you know, the less risk you take. Buffet spends 80% of his day reading! Knowledge comes from data, analysis, and opinion. So, we can say he is a data-driven decision-maker, he uses data in all his business decisions.
The next question is what he reads? Warren Buffet tells CNBC he reads the Wall Street Journal, the Financial Times, the New York Times, USA Today, the Omaha World-Herald, and the American Banker in the mornings. But that is not exactly the answer to the question of what he reads?
Buffet is known for investment decision that is based on the real value of the investment. This investment value philosophy looks at the intrinsic value of a share rather than focusing on technical indicators, such as technical charts, which is known as the fundamental analysis of the investment.
In data terminology, fundamental analysis of the investment is close to qualitative data, while technical analysis is close to quantitative data.
So, to be a data-driven decision-maker like Warren Buffet, it does not mean to subscribe to the exact newspapers he read, these are only platforms of news, data, and analysis, maybe your local newspapers are much better than them.
But first, you need to decide to use data and analysis before any strategic decision you make, i.e., to make data is your habit. Second, read qualitative analysis rather than quantitative. Examples of qualitative analysis are reading trends, stories behind the news, future foresight. Focus on long-term strategic analysis rather than breaking news.
How to become a data-driven person like Warren Buffet?
Step 1: Make reading is your habit
Assign at least one hour daily for reading, delete unnecessary daily activities if your answer is “I don’t have time”. Reading should be a habit!
Step 2: Read the long-term and deep analysis
Don’t read breaking news (which are mostly sad), don’t read stock prices, gold prices, etc.
Focus on deep analysis, maybe opinion, and strategic forecasting for the future.
This article is authored by Human Centered Data LLC
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