5 Books Recommended By Leaders Like Warren Buffett

This is a guest post by Lior Grossman. Lior is the founder of BookAuthority, designed to help you find the best business books by top industry leaders. Personal note: I was one of the first CEO’s to make a few recommendations on the site.

 

The Power of Books

I firmly believe that reading the right book can open your mind to a whole new world of ideas and opportunities. The right book can inspire and empower you to overcome your challenges and take action. As a leader, I understand I need to expose myself to ideas that are capable of transforming me and the people that I lead.

The world of leadership is evolving, and present-day leaders should seek insights and context to understand this changing world better. Leadership development is a must because what was applicable in the past no longer applies today.

Reading is the one habit that almost all successful people have in common. Bill Gates reads about 50 books every year; Mark Zuckerberg resolved to read 24 books a year; Mark Cuban reads three hours every day, and Warren Buffett spends 80% of his day reading!

Yes, I know. Unlike Mr. Buffett, you cannot afford to spend the majority of your time reading books, and you really don’t have enough time to dedicate to your personal development. However, sharpening your skills can be as easy as updating your reading list, so that when you do find that one precious hour to read, you’ll spend it on a book that will be worth it.

The idea of helping people identify the few books that are worth reading is what led to the creation of BookAuthority – a new website that helps you identify the world’s finest business books, by collecting and aggregating book recommendations from 150 of the most successful people in the world.

To help you find your next read, here is a list of great leadership books recommended by well-known leaders like Warren Buffett and Eric Schmidt:

 

The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success

Author: William N. Thorndike, Jr., Founder of Housatonic Partners

Recommended by Warren Buffett, CEO of Berkshire Hathaway

10 Challenges that Defined the Company Disrupting the World

Disrupt the World

Chances are you’ve been on it today. More than 1 billion users visit it daily. Most of us start our day and check our personalized news feed, see who is celebrating a birthday, and keep up with our friends and family on the platform. It’s worth over $400 billion and is in the rare air of companies like Google and Apple.

Of course, I’m talking about Facebook (join me here). It’s not only changed the way we consume information, but also how we interact with the world.

In Becoming Facebook: The 10 Challenges that Defined the Company That’s Disrupting the World, Mike Hoefflinger takes us from the start of 2009 and its 150 million users to its explosive growth over the next several years.

Mike Hoefflinger is a 25-year veteran of Silicon Valley. After working directly for Andy Grove at Intel and as general manager of the Intel Inside program, Mike moved to Facebook to serve as Head of Global Business Marketing. During his nearly seven years there, the teams he built helped dramatically grow Facebook’s advertising business. He is now an executive-in-residence at XSeed Capital.

I recently spoke with him about all things Facebook.

 

FACT: Facebook generates more traffic to YouTube than any other source including Google.

 

Behind Facebook’s Unprecedented Rise

What are some of the factors behind Facebook’s unprecedented rise to its worldwide phenomenon status?

Any story of Facebook’s rise starts with Mark Zuckerberg. While it would be difficult to acquire his vision and intuition, we can learn from how he goes about moving Facebook forward. With Facebook’s mission to make the world more open and connected in place since its earliest days, Zuckerberg has always preferred doing to talking. Whether it is building and launching thefacebook.com, staying calm during stormy product launches or competitive episodes, making big decisions to grow the business, self-disrupting the company via large acquisitions to protect itself, or betting on futures others dismiss or don’t see (such as VR/AR and connecting the next billion Internet users), dogma and fear never swamp the doing.

 

Fact: Facebook tops 1.25 billion users per day.

 

Would you share some statistics on Facebook’s current reach? How often we access it? How it compares to other media?

It’s difficult to over-state how large Facebook has become. Not only does it serve more than 1.94 billion people a month—about two-thirds of all Internet users in the world—it serves two-thirds of those every day, on average once every waking hour. No wonder it is the single most popular mobile app ever. And while that would be impressive, the company is also home to three of the next five most popular global communications tools: WhatsApp at more than 1.2 billion users a month, Messenger at more than 1.2 billion, and Instagram with more than 700 million. With consumers on the way to making mobile the most important medium ever—it is forecast to eclipse the amount of time we spend per person on television in 2020—Facebook is its pre-eminent force.

 

CEOs Who Transform How We Live

What can we learn from great CEOs like Mark Zuckerberg?

Zuckerberg has become a member of a very small group of CEOs in the last five decades who run consumer technology companies that invent the future for us, create the things we cannot live without, and touch hundreds of millions, and sometimes billions, of lives: Intel’s Andy Grove, Apple’s Steve Jobs, Amazon’s Jeff Bezos, Netflix’s Reed Hastings, Alphabet’s Larry Page and Tesla’s Elon Musk. After observing them the last 25 years in Silicon Valley, I’ve detected three things these product-centric founding CEOs have in common:

(1) They pursue an achievable-unachievable mission—something so big it cannot be completed, but one that offers moments of success along the path to bring confidence and momentum to employees, customers and observers.

(2) They are able to see—and willing to pursue—things that are very clever, but appear foolish in most minds initially. This way they avoid the food-fight of ideas everyone else thinks are clever, a road to nowhere of ideas that not only appear foolish but actually are. They usually know something—especially about technology and customers—that no-one else does.

(3) They are running 21st Century Medici Academies that attract the best talent. 500 years before Silicon Valley, the Medici family of Renaissance Florence built facilities, bestowed patronage and hosted discussion forums for the brightest minds of the period, including Michelangelo, DaVinci and Botticelli. The vision, scale and success of these modern-day CEOs make their teams highly attractive for today’s builders with the biggest dreams.

 

The Speed Factor

Why Presidential Candidates Need a Founder’s Mentality

This is a guest post by Chris Zook. Chris is a partner at Bain & Company and has been co-head of the firm’s Global Strategy practice for 20 years. He specializes in helping companies find new sources of profitable growth. He is the co-author with James Allen of five bestselling books on strategy, including The Founder’s Mentality: How to Overcome the Predictable Crises of Growth.

Do You Have a Founder’s Mentality?

Few countries revere its founders as much as the U.S. does. From the founding fathers who came together to write the Constitution to the founders of our most iconic and enduring companies and institutions, we see founders as role models of leadership and positive vision in a world where great leadership and the positive energy of hope are increasingly needed more than ever.

 

Fact: 1 in 3 winners of the TIME Person of the Year is a founder.

 

In the past 20 years, nearly one in three recipients of the TIME Person of the Year Award has been a founder (including Steve Jobs, who received honorable mention the year he died). Books and movies about founders have captured the public’s imagination, from The Social Network about Mark Zuckerberg and the founding of Facebook to the eagerly anticipated release at the end of this year of The Founder starring Michael Keaton, about McDonald’s founder Ray Kroc. Entrepreneurship is one of the fastest growing categories of school and class enrollment—everyone wants to be a founder. Whereas trust in our largest companies is at an all-time low, smaller, often founder-led companies head the list of institutions in which we collectively have confidence.

ZookChristopher_2015 (2)Great founders also achieve great results. During the ten-year period from 2002 to 2012, nearly 50 percent of the value created in the U.S. stock market was from 15 companies—like Google, Apple, Oracle, and Facebook—that are part of the ecosystem centered at Silicon Valley, the ultimate crucible for founders. Throughout this period, founders were at the helm or still involved in 13 of 15 of these value-creating companies. Moreover, since 1990, across the entire stock market, those companies where the founder remained influential performed more than three times better than those where the founder was nowhere to be found.

 

FACT: Since 1990, companies with influential founders perform 3x better than uninvolved founders.

 

Even more important for the U.S. is the role of these growing companies in job creation—the issue of primary importance for the average American.  Research by the Kauffman Foundation shows that the largest companies have been net destroyers of jobs in America (as have governments). By contrast, the smaller, frequently founder-led companies are the source of nearly all good new jobs. The data on new company formation and their growth across economies shows that our ability as a nation to encourage, nurture, and celebrate founders is central to making the U.S. economy so robust and allowing us to be the privileged nation that we are.  At a time when ensuring the supply of good new jobs is so important, we should heed the role of founders—and especially the lessons we can learn from them about building the enduring institutions that are the foundation stones of a great country.

Of course, the founders of our country and later of its defining businesses and organizations were human beings, often flawed, with personal quirks or dissonant personal beliefs. Yet our research on these enduring institutions and how the founders set them up in the first place shows that the great founders shared three common traits that enabled their accomplishments and were often infused into their organizations. We should note these three elements as we decide the traits we want in America’s next leaders.

 

3 Common Leadership Traits of Great Founders

First, great founders are insurgents, vocal and eloquent about an inspiring mission to improve the world. From Jefferson’s list of the unalienable rights that define why governments exist to Elon Musk’s desire at Tesla to redefine transportation, to the founders of Google’s objective to “organize all of the world’s information,” a purpose stated in the most positive and inspiring tone was always at the center. We live in a world in which only 13 percent of employees say they have any emotional connection to the purpose of the organization where they work. Yet, those who do have that connection to a positive mission of what their company is striving for are three and a half times more likely to offer innovative ideas or go the extra mile to solve a problem on the spot. This is in stark contrast to our current election year, which has been branded “the most negative campaign in history.”

 

Positive, inspiring purpose statements are at the center of great companies.

 

The second trait that great founders of enduring institutions share is an obsession with the details on the ground, and a focus on (and empathy for) the people at the front line. In businesses, founders were often salespeople or product developers first and the best ones maintained that ground-level mentality even as their institutions grew and prospered. Henry Ford referred to the contribution of plain men who never got into history. Arguably, the greatest contribution of Ray Kroc was his development of a franchising model that allowed all of his store managers to become mini-founders in their own right.

 

Enduring institutions have an obsession with the details and focus on the front line people.