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Billionaire investor Warren Buffett, the CEO of Berkshire Hathaway, emphasizes that educational background should not overshadow a candidate’s capabilities when it comes to leadership roles in his companies. In his latest letter to shareholders, Buffett reveals that he does not consider the educational pedigree of applicants for key positions at Berkshire Hathaway, which includes well-known brands like Geico and Dairy Queen.
Buffett notes that practical skills and experience are far more valuable than an Ivy League diploma. “I never look at where a [CEO] candidate has gone to school. Never,” he declared, recognizing that while prestigious institutions produce capable leaders, many successful individuals have thrived without such credentials, or without finishing their education altogether.
This perspective is shaped by his own experiences and observations of successful figures in business, including his colleagues at Berkshire Hathaway and notable dropouts like Bill Gates, co-founder of Microsoft. Buffett, who earned his degrees from the University of Nebraska and Columbia University, shared his belief that college may not be essential for everyone and highlighted the importance of investing in oneself.
Buffett remarked during a talk with students at Ivey Business School at Western University in 2012 that, “The best education you can get is investing in yourself,” reiterating that this investment does not have to take the form of a conventional college education. He champions lifelong learning, maintaining that innate talent often outweighs the advantages of formal education.
Reevaluating the Importance of a College Degree
Buffett’s stance may reflect a broader societal shift in attitudes toward higher education. According to a Pew Research Center survey published last year, nearly half of Americans believe that a four-year college degree is less critical for obtaining a high-paying job than it was two decades ago.
In his shareholders letter, Buffett paid homage to Ben Rosner, a former Berkshire Hathaway executive who started his business after the sixth grade. Rosner’s success serves as a testament to Buffett’s point that formal education is not the only path to achievement.
While college graduates tend to earn higher salaries on average, less than 12% of Fortune 100 CEOs in 2023 attended Ivy League schools for their undergraduate studies, with an even smaller fraction holding MBAs from these elite institutions. Notably, Greg Abel, Buffett’s potential successor and vice chairman of non-insurance operations at Berkshire Hathaway, is an alumnus of the University of Alberta.
Prominent entrepreneurs echo Buffett’s views on education. For instance, entrepreneur Mark Cuban argues for the importance of the college experience over the degree itself, stating that higher education provides valuable business insights. “If you want to start a business, go to college and learn the language of business,” he advised.
Even Bill Gates, who famously left Harvard to pursue business, acknowledges the merits of a college education, making it clear he isn’t an advocate for dropping out. In a recent interview, he expressed admiration for broad learning and criticized the idea of abandoning education unless the circumstances are exceptionally compelling.
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