Warren Buffet. Image source: thetaxhaven
Warren Buffett is known as one of the best investors ever. He’s also probably the best CEO at public relations. Investors eagerly examine his comments for nuggets of financial wisdom. PR pros can also learn from his advice.
As chairman of Berkshire Hathaway, Buffett built a reputation as a man of first-class ethics, a regular guy from Omaha who regularly beats Wall Street city-slickers at the investment game. He also gained a reputation for veracity – always – and genuineness in communicating with investors. Famous for his quotable quotes, it was Buffet who said: “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” His genuine approach, willingness to speak truth to power, and down-home humor earns him as much TV air time as he wants.
Buffett’s PR work supports his investment success. When Buffet invested $5 billion in Goldman Sachs during the height of the financial crisis, negotiating a 10 percent interest payment and a $115 a share warrant. He could not have won such a sterling deal without his sterling reputation, writes Peter Cohan for AOL.com
A Sterling Reputation
Buffett revealed how he developed such a positive reputation in an interview with Jeff Cunningham for his YouTube channel Iconic Voices. These are several of his main points, Cunningham explains.
Train for the podium. Buffett was not born an excellent public speaker. He feared speaking in public as a young man. After graduating from college, he took a Dale Carnegie course to overcome that fear and improve his public speaking skills. The lesson: Training helps speakers prepare for the podium and in front of cameras. Even CEOs – especially CEOs – can benefit.
Always take a reporter’s call. Buffet always talks to a reporter who calls. If he finds the interview is not worth his time, he ends the call within a few minutes. “I always worry about appearing rude, because I can tell quickly, whether it’s just chatter,” he says. Even though they’re busy, it’s better for executives to take a call than risk losing a media opportunity.
Understand the reporter’s bias. Reporters begin with a hypothesis and then contact sources to confirm that belief. They may not drop the hypothesis, even if sources don’t support their original idea. Learning the reporter’s bias through research will help spokespeople craft their answers. Sometimes the nature of a reporter’s questions reveals their intended story angle.
Educate journalists. Business leaders often complain that journalists don’t understand their business. But reporters are not paid to be business experts; they’re paid to write stories. Educating reporters, especially as background during a slow news period, will eventually pay media dividends.
You can win the story but lose the headline. The reporter may write a favorable story, but the headline might relay a different message. Reporters write the stories, but editors write headlines. Unfortunately, many people only read the headline. Buffett tells reporters they should be comfortable with the headline. “If the reporter feels the headline misrepresents their story, they have an obligation to complain to the editor,” he says.
More of Buffett’s Secrets to Communication
Communications coach John Millen cites other secrets of communication from Buffett. They include:
Be transparent. Buffett’s Berkshire Hathaway annual shareholder letters are instructive, easy to understand, and fun to read. They are also blunt about his own and his company’s mistakes.
Use plain English. In his preface to “A Plain English Handbook: How to Create Clear SEC Disclosure Documents,” he states: “I’ve studied the documents that public companies file. Too often, I’ve been unable to decipher what is being said or, worse yet, had to conclude that nothing was being said.”
To write in plain English, imagine you’re writing for specific person, he recommends. Buffett imagines he’s writing to his sisters, who are intelligent but not accounting or finance experts. “To succeed, I don’t need to be Shakespeare; I must, though, have a sincere desire to inform,” he writes.
“This is sage advice from a communication expert, who happens to manage money,” Millin says.
Bottom Line: Warren Buffett is a public relations master as well as a renowned investment guru. PR pros and business executives can bolster the PR efforts and develop positive brand images by learning from his example.
William J. Comcowich founded and served as CEO of CyberAlert LLC, the predecessor of Glean.info. He is currently serving as Interim CEO and member of the Board of Directors. Glean.info provides customized media monitoring, media measurement and analytics solutions across all types of traditional and social media.
