The Four Surprising Lessons Farmers Can Learn from Warren Buffett

The owner of a farm business can learn from the wisdom of famed investor Warren Buffett, not just because of the incredible wealth he has amassed, but also because of his unique perspective on things.

Each year, it's valuable to devote some time to check Berkshire Hathaway’s Annual Report and read Chairman Buffett’s remarks. Many have also enjoyed reading anything his late colleague Charlie Munger (whom Buffett referred to as his business partner) wrote. Munger passed away early in 2024, but his wisdom remains influential.

After reading through the past year’s annual report and reflecting on what has been read from Buffett and Munger over the years, a few lessons have been compiled from their wisdom. These particular lessons are not about the markets or investing. Everyone knows Buffett is a shrewd value investor and business builder with a knack for finding business bargains and amassing great wealth. But he’s more than that, and this article focuses on some of his other principles and traits that may change how one thinks about their business.

1. Know Your Track Record

Berkshire Hathaway’s annual report regularly features a table summarizing the performance of the company for almost 60 years since the current management, led by Buffett, took over. The returns are impressive, to say the least. But what’s even more remarkable is the consistency throughout the decades.

There were ups and downs, of course. But in general, there is consistent, steady progress through the years.

As a farmer, it might be interesting to lay out your track record on an annual basis. While Berkshire Hathaway expresses its two key figures as per-share book value and per-share market value, you can determine what you want to measure. That might include gross and/or net income, net assets, or something else that you find relevant. How you measure the financial success of your business is up to you.