Priority Management from the Oracle of Omaha
From Omaha’s Oracle to your own to-do list, Warren Buffett’s centuries-old hometown wisdom boils down to one principle: focus on what matters. His investment successes owe as much to ruthless priority management as to market insight. Here’s how Buffett’s habits and “innovations” in managing attention can help you do more of the right work—and less of everything else.
Concentration Beats Diversification
Buffett’s Rule: “Wide diversification is only required when investors do not understand what they are doing.”
Rather than spreading bets thin across dozens of stocks, he holds a handful of high-conviction positions—think Coca-Cola, American Express—that he understands deeply.
Priority takeaway:
Pick fewer, vital goals. When you try to juggle ten projects, none gets your best effort. Zero in on the 2 or 3 that move the needle.
Commit patiently. Buffett bought Geico in 1996 and still owns it today. Long-term focus beats frenetic task-switching.
The “5/25” Strategy
A story—often traced back to Buffett—goes like this: He asked a young executive to list 25 career goals. Then he told him to circle the top 5 and avoid the other 20 at all costs. The result: a laser-focused path to success.
Priority takeaway:
List everything you want to achieve this year.
Identify your top 5. These become your “must-do” objectives.
Avoid the rest. They’re distractions, not “nice-to-haves.”
Read 500 Pages a Day
Buffett spends roughly 80% of his waking hours reading—annual reports, newspapers, business books—so that when an opportunity (or crisis) strikes, he already has mental models in place.
Priority takeaway:
Block “thinking time.” Guard uninterrupted hours for deep reading, research, or planning.
Invest in knowledge before action. Decisions grounded in context save time and cut mistakes.
Know Your Circle of Competence
Buffett defines his “circle” around businesses he understands intimately—insurance, consumer goods, banking. Outside that, no matter how tempting, he steps back.
Priority takeaway:
Map your strengths. What tasks or topics do you tackle with ease?
Say no to everything else. Outsource, delegate, or decline non-core work to preserve bandwidth.
Simplicity and Saying “No”
He’s famous for turning down deals, media requests, even high-profile speaking gigs. Buffett calls a crowded calendar “the enemy of great work.”
Priority takeaway:
Write a short list of criteria for any new request: timeline fit, ROI, alignment with top 5 goals.
Practice polite refusal. Every “yes” to a low-value ask is a “no” to a high-value priority.
Applying Buffett’s Playbook
Quarterly “Portfolio Review” for Your Goals
Drill into your 3–5 major objectives: What’s on track? What’s stalled?Weekly “Worth It?” Check
Scan your calendar: Which meetings and tasks truly advance your top priorities?Daily “Margin of Safety” Blocks
Carve out 60–90 minutes of zero-distraction time for high-leverage work.
Final Word
Warren Buffett didn’t invent urgency or ambition—but he mastered the art of letting most things go, so the few that matter could flourish. Next time your inbox pings or a new shiny project beckons, ask yourself:
“Does this fit inside my circle of competence, advance one of my top 5, or deserve my best hours today?”
If the answer is no, follow the Oracle’s lead: smile, thank them—and get back to what matters most.
