In a candid moment of reflection, legendary investor Warren Buffett shared an essential pillar of his professional ethos, revealing the personal values that guide his multi-billion-dollar deals:

“After some other mistakes, I learned to go into business only with people whom I like, trust, and admire. … We’ve never succeeded in making a good deal with a bad person.”

A Time-Tested Approach to Business

The Berkshire Hathaway (BRK.A)(BRK.B) CEO’s statement underscores a critical insight: even the most promising financial returns can be undermined by unethical or unreliable partners. Buffett’s straightforward advice highlights several key principles:

1. Character Counts More Than Contracts
   Buffett has long held that a good reputation and integrity carry more weight than legal fine print. He believes that if you cannot trust a partner at face value, no amount of paperwork will protect you in the long run.
2. Like, Trust, and Admire
   For Buffett, these three traits are non-negotiable. Respect and genuine rapport within a business partnership can outlast market downturns and help weather inevitable challenges.
3. A Lesson from ‘Mistakes’
   Buffett’s emphasis on “after some other mistakes” suggests that poor outcomes in the past stemmed not from flawed financial analysis but from misjudging a partner’s character—an error he is determined not to repeat.

Ties to Buffett’s Investment Philosophy

This “people-first” criterion aligns with the broader culture at Berkshire Hathaway:

• Long-Term Focus
  Buffett’s style of investing favors steady, ethical companies that flourish over decades—an approach that demands leaders with stable values and integrity.
• Partnerships Over Transactions
  At Berkshire, building relationships is paramount. Whether acquiring a company or working alongside executives, Buffett treasures long-standing partnerships based on mutual respect, not quick deals.
• Management Quality
  Beyond balance sheets, Buffett scrutinizes the people running a business. He often praises effective leaders—like Berkshire’s many subsidiary CEOs—who combine operational excellence with honest character.

Lessons from Buffett’s History and Journey

• Early Career Setbacks
  In his youthful forays, Buffett occasionally found himself partnering with individuals who prioritized short-term gain over sustainable practices. These experiences taught him that the “who” can matter more than the “what.”
• Charlie Munger and Trust
  Buffett’s longtime partner, Charlie Munger, exemplifies the synergy of complementary values and intellect. Their deep mutual trust has steered Berkshire to decades of market success.
• Iconic Acquisitions
  From See’s Candies to Geico, many of Buffett’s best deals were struck with owners and managers he admired. That trust factor has fostered smooth transitions and enduring results.

A Blueprint for Investors and Entrepreneurs

For those looking to emulate Buffett’s success, the takeaway is clear:

1. Prioritize Character
   Assess potential collaborators not just on their resumes or financial standing, but also on their ethical compass and dependability.
2. Foster Meaningful Relationships
   A handshake can be as strong as a contract when both parties share respect and aligned interests—cutting down on conflict and complexity.
3. Play the Long Game
   Just as Buffett invests with a multi-decade horizon, building partnerships on mutual integrity yields far more stable returns than dealing with individuals who lack scruples.

In a world where quick wins often overshadow caution, Warren Buffett’s maxim—“never succeeded in making a good deal with a bad person”—stands as a testament to the power of trust. Like so many of his principles, it’s grounded in common sense but backed by an extraordinary track record, reminding us that good ethics remain an indispensable asset in business.