Warren Buffett Rhetorical Analysis

Warren Buffett, 87, Chief Executive Officer of Berkshire Hathaway is known as one of the world’s wealthiest individuals, yet; it is his innate talent for storytelling that makes his name ring louder than the corporate conglomerate he leads. Buffett’s rhetorical strategy goes beyond investment acumen by employing axiomatic communication skills that project the right ethos onto shareholders and stakeholders alike, making him an authentic, credible and trustworthy leader. This paper will explore how Buffett utilizes three key principles comprising; clarity of communication through written and oral dialogue, the synesthetic metaphor that illustrates the similarity between Buffett and his audience, and deliberative linguistic structure of oratorical

scintillation that is a work of persuasion in itself. Buffet’s ability to cultivate a global following for nearly half a century continues to ignite one's curiosity in the hope that Berkshire Hathaway’s successor will be just as engaging, apt, and in it for the long haul.
Warren Buffet has uninterruptedly maintained the helm of Berkshire Hathaway for nearly fifty years by positioning himself as an analytical leader interested in value driven investment rather than quick returns. Similarly, Buffett’s personal acumen aligns with his investment strategy; value and quality in investment albeit, stocks, socks, or people, predicts return. The return as such is the CEO’s mass following. Investor or not, the public responds to Buffett’s equipoise as leader due to clear and effective communication. It is important to note this has not always been the case. In the HBO documentary, “Becoming Warren Buffett”, Buffett acknowledges his relationships with people are fraught with personal paradox’s requiring constant attention. The ability to connect with “the physical universe” is far more challenging than “easy” financial issues, stating that “It’s the human problems that are the tough ones.” However, Buffett’s vulnerability strengthens his position as a trustworthy leader, for he practices what he preaches. Encouraging individuals and CEO’s to invest in themselves, a Dale Carnegie course in Buffett’s case, and surrounding themselves with people they admire, not only betters their person but increases their corporate value. Buffett’s lead by example strategy sets the foundation for communication most credible and most importantly, persuasive.

Conjecturally, the majority of Chief Executive Officers addressing annual shareholder meetings do not receive the hype, anticipation, and warm reception as does Warren Buffett of Berkshire Hathaway. Buffett’s own personal investment as illustrated earlier suggests that if one communicates in an ineffective, non-transparent manner through the use of complex jargon and avoidance the result will be loss of trust. The Harper Collins Dictionary defines “rhetoric” as the skill of using language effectively by using speech to persuade or influence another. A comparison between Berkshire Hathaway and Tesla’s annual shareholder’s meeting headed by Warren Buffett and Elon Musk, in 2017 depicts both leaders using differentiating rhetorical methods. The opening of Berkshire Hathaway’s meeting begins with a brief informal introduction, “That’s Charlie, I’m Warren. You can tell us apart because … uh, he can hear and I can see. That’s why we work together so well. We each have our specialty. Omaha is a great city. I hope you get to see a lot of it while you’re here.” Thereafter, Buffett immediately delves into Berkshire’s earnings and losses report for three hours. By addressing his audience of ten thousand plus through pathetic appeal coupled with logical rhetorical device, i.e. the metrics of the company’s performance, Buffett’s simple approach constitutes trustworthy leadership. In contrast, Tesla’s meeting, staged with only a microphone appears informal. After a brief introduction of the meeting’s agenda, Musk appears personable, referring to the meeting as a “party”. Most notable is Musk’s use of platitude’s, “Tesla has had a great year … with even better years to come … we’re doing awesome … we’re super excited.” With little emphasis placed on the company’s performance concerning hard assets and challenges, of which there were several, Musk’s superlative gobbledygook translates into an over rated sales pitch that raises a field of red flags.

The average tenure of a Chief Executive Officer of a Fortune 500 company is between four and seven years.

The exchange being exorbitant compensation leads companies to near-overnight success, which more often than not results in bad business decisions and deceit, ensuing in shareholder loss. Buffett’s occupation as CEO has not been a series of home runs; however, he remains transparent by communicating in a plain language that in turn, protects the exploitation of Berkshires shareholders to investments outside of the company’s “circle of competence”. This is cleverly achieved through concise language explaining terminology coupled with usage the of metaphors in Buffett’s Chairman’s Letters to the shareholders of Berkshire Hathaway. For instance, Buffett states in his 2008, Letter to Shareholders on the economic collapse, “By year-end, investors of all stripes were bloodied and confused, much as if they were small birds that had strayed into a badminton game … In poker terms, the Treasury and the Fed have gone ‘all in.’ Economic medicine that was previously meted out by the cupful has recently been dispensed by the barrel.” Illustrating a candor that speaks louder than any shiny technical verbiage assuring his readers that investing with Berkshire is a relationship, and human

exchange.

The character of a company’s reputation is just as important as the character of the people who run it.

Buffett has remained adamant that the core responsibility of a company is to maintain its reputation. Infamous for his one liner’s Buffett claims, “It takes 20 years to build a reputation, and five minutes to ruin it. If you think about that, you’ll do things differently.” In 1991, Buffett solidified himself as a person of integrity and honesty as he appeared before the Subcommittee on Telecommunications and Finance of the Energy and Commerce Committee of the U.S House of Representatives, to accept responsibility for the Salomon Brother’s scandal. Speaking in first person narrative, Buffett personalizes his message, each sentence averaging ten words or less. Moreover, the language is concise and to the point, inclusive of all “8,000 employees regret” illustrating the innocence of those affected. Buffett’s specific word order depicts a firm, uncompromising leader, whose choice of words, “lose money for the firm by bad decisions, I will be very understanding. If you lose reputation for the firm, I will be ruthless” exemplify Buffett’s successful attempt to salvage its reputation, but most importantly persuade

effectively.