EQ and Investing.

A few days ago I came across a HBR article titled "What makes a Leader?" It was written by Daniel Coleman written in 1998. He was the famous professor that investigates emotional intelligence extensively, culminating in a book with that title in 1996. In this article he discusses the 5 values required to be a leader.

1. Self-awareness

2. Self-regulation

3. Motivation

4. Empathy

5. Social Skills.

After reading the article, I wonder if there are different between being a leader and being an investor. And I would base my analysis on one of the greatest investors, Warren Buffet.

1. Self-Awareness.

Warren Buffett is probably one of the most self-aware investors there is. He understands that there is so much he knows about different sectors that he does not invest in a sector he doesn't know inside and out. Retail, financials (insurance in particular), and media are his forte. Edward Lampert is another example. Of course, too bad he is only focused on retail and he is torched in this crisis.

2. Self-Regulation

Once Buffett figures out what he understands, he almost always sticks with it and rarely doubts his decision. He never invested in technology stocks, not in the 60s when Intel started (he was specifically asked to invest, which he declined), and not in the 90s. Of course, he lost an opportunity to make billions of dollars, but he was able to sleep at night in 2001.

Another interesting fact is that Buffett doesn't have many hobbies besides investing. Bridge, and Football game are about what he cares about. Self-regulation is also about controlling your interest. Jack of all trades, master of none. It is fun too learn something new, and Buffett makes sure what he learns is related to making money.

3. Motivation

If you read the Snowball, you should read the last few papers. Basically, the desire to make money is what made him learn to ride a bike, so he could deliver newspaper. The desire is what made him ride a train to Washington, DC to learn about insurance in 1951. The same desire is what makes him become a great public study daily nonstop for years.

4. Empathy

This is actually where I am stomped. As a businessman, he is rational, calculating, and sometimes ruthless. That does not necessarily translate into empathy. However, he is known for flattering people and "buffetting" people into doing things for him... Is that empathy???

5. Social Skills

He was known as a socially awkward till he took a Dale Carnegie lesson when he graduated from Columbia. He became better at it after marrying. Considering the amount of friends he has now, there is no surprise that he has great social skills. Not convinced. take a look at Jeff Matthew's Pilgrimage to Warren Buffett's Omaha. Chapter.. 16 "Artful Dodging."

I understand that much of the analysis is not particularly in depth. However, to get you to read the entire article, i need to be quite brief. We are living in an age of short attention span after all.