As Warren Buffett officially passes the torch at Berkshire Hathaway, he isn’t just leaving behind a legacy of unmatched financial returns; he’s leaving a roadmap for the next generation of leaders.
In a recent piece for Fortune, reporter Emma Burleigh captured the essence of Buffett’s final lesson to Gen Z. While today’s graduates are entering a world of "starry six-figure salaries," the Oracle of Omaha suggests they are looking at the scoreboard all wrong. According to Buffett, your first boss is a much better predictor of your future success than your first paycheck.
Here is a deep dive into why who you work with is the ultimate investment.
The Proximity Principle: You Are Your Peers
The core of Buffett’s advice is a warning about the subtle power of social contagion. As Burleigh notes, Buffett warned young professionals at his final annual shareholder meeting:
"Don’t worry too much about starting salaries and be very careful who you work for because you will take on the habits of the people around you."
Psychologically, this is known as the "proximity principle." We are social creatures who unconsciously mirror the behaviors, ethics, and work ethics of our immediate environment. If you enter a workplace where "quiet quitting" is the norm or where cutting corners is rewarded, those habits will eventually become your own.
Buffett’s point is that in your 20s, you are in your most "plastic" phase. The professional DNA you develop now—how you handle a mistake, how you treat a subordinate, how you analyze a problem—is being molded by the people you sit next to every day.
Beyond the "Six-Figure" Distraction
It is easy to see why Gen Z is focused on the money. We are living through a period of high inflation and skyrocketing housing costs. However, Burleigh highlights that Buffett’s own path to $150 billion wasn't about chasing the highest immediate return.
His first jobs were humble:
Selling Coke bottles door-to-door.
Delivering newspapers for The Washington Post at age 13.
Working for his father’s brokerage firm.
By the time he reached his 30s, he was a millionaire (roughly $10 million in today's value), but that wealth was a byproduct of the habits he learned from mentors like Benjamin Graham. Buffett has often remarked that he would have worked for Graham for free just to be in the same room. The "dividend" of working for a genius mentor is paid out over a 40-year career, whereas a $10,000 salary bump is spent in a single year.
How to Choose "Wonderful" People
If salary isn't the North Star, what is? Buffett suggests looking for people who are "better than you."
As Emma Burleigh points out in her article, Buffett’s strategy for success is surprisingly simple: "Pick out associates whose behavior is better than yours, and you’ll drift in that direction."
When interviewing for a job, Gen Z workers should be interviewing their potential bosses just as much as they are being interviewed. Ask yourself:
Do I admire this person’s character, not just their title?
Do they have habits I want to possess in ten years?
Would I want to be friends with this person if we weren't working together?
The "No Money" Litmus Test
Perhaps the most profound piece of advice Buffett shared—and one that Burleigh highlights from his 2021 letter to shareholders—is the "No Money" test.
Buffett urged students to seek the kind of employment they would choose "if they had no need for money." While he acknowledges that "economic realities" may interfere with that search initially, he insists that the quest should never stop. The goal isn't just to find a job that pays the bills; it’s to find a environment where you are so aligned with the mission and the people that the concept of "work" begins to disappear.
Buffett’s 3-Step Plan for Gen Z:
Identify Your Strengths: Figure out what you are naturally good at.
Pick the Right People: Surround yourself with mentors who represent the "future you."
Don’t Fear Mistakes: As Buffett told CBS News, a career is a long game. A few slip-ups are fine as long as you have a support system to help you learn from them.
Playing the Long Game
The "Oracle of Omaha" is 95 years old, and his perspective is shaped by nearly eight decades in the workforce. His parting gift to Gen Z is the reminder that career capital is not just about the numbers in your bank account; it is about the quality of your character and the strength of your network.
As Emma Burleigh’s reporting makes clear, your starting salary is a one-time payment. The habits you learn from a great boss are a gift that keeps on giving.
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