(Inc.com) - The economy and small businesses alike continue to take a beating from inflation. But Berkshire Hathaway CEO Warren Buffett says you can protect against its effects with this familiar, long-held philosophy:
The best thing you can do is to be exceptionally good at something. People are going to give you some of what they produce in exchange for what you deliver.
The legendary investor said this while speaking at the 2022 Berkshire Hathaway annual shareholders meeting. Buffett emphasized that sharpening your skills is a great way to keep inflation at bay and stay atop in your chosen field. Since skills are inflation proof, Buffett said, your skill or talent will remain in demand during periods of inflation.
The best investment by far
"Whatever abilities you have can't be taken away from you. They can't be inflated away from you. The best investment by far is anything that develops yourself, and it's not taxed at all," advised Buffett.
The key to Buffett's counsel is not chasing after skills or talents in areas that don't serve you well. As he has alluded to in the past, you don't need to put out extraordinary effort to achieve extraordinary results. You need to do the ordinary, everyday things exceptionally well.
One of the most ordinary skills every businessperson should continuously develop -- inflation or not -- is one that Buffett champions frequently: communication.
In a video posted on LinkedIn, Buffett said, "If you can't communicate, it's like winking at a girl in the dark--nothing happens. You can have all the brainpower in the world, but you have to be able to transmit it. And the transmission is communication."
Buffett has stated that investing in developing your communication skills can "improve your value by 50 percent."
Here are some ways to do just that:
Use metaphors
To really capture an audience and keep them from yawning when complex topics are discussed, influential speakers use metaphors and analogies to hold their audience.
By putting metaphors into your pitches, presentations, and staff meetings, you can turn an abstract idea into something concrete that everyone can relate to and understand.
A figure of speech or a comparison between two familiar things can provide clarity and ensure that your listeners pay attention, which is the whole goal of communicating.
Tell inspiring stories
Billionaire Richard Branson wrote in 2016, "Today, if you want to succeed as an entrepreneur, you also have to be a storyteller."
The reason it works is that stories build trust with your audience or the person sitting across from you in a one-on-one meeting. Branson adds, "Storytelling is as old as the campfire and as young as a tweet. What moves people is someone who is credible."
Take Steve Jobs, for example. His presentation of the iPhone in 2007 is still one of the best business speeches ever delivered. Jobs captivated us with a simple story that inspired us to own an iPhone.
Know how to confront someone
One good communication habit that nobody seems to want to address (or have) is absolutely necessary: knowing how to confront someone.
Sure, it's human of us to want to avoid confrontation -- it's uncomfortable, awkward, and painful. While conflict is inevitable, it's also preventable and avoidable if we choose the pathway to healthy confrontation.
The reality is that confrontation is often the quickest route to cut through the drama, set clear expectations with intention, and have a positive outcome. It just takes intestinal fortitude and a good attitude on your way to the promised land.
The starting point is knowing how to confront with the right approach, in the right setting, and in the right way. Master that framework and people will start calling you the human whisperer.
By Marcel Schwantes
April 19, 2023
