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The Financial Importance of Emotional Control from Warren Buffett
Image Courtesy of New Trader U
Mike Tyson is being sued for $450,000 for assaulting a man on a JetBlue flight, and Tyson’s attorney is calling it a “shakedown.”
Is it a shakedown or not? Did Tyson lose his cool like he usually does? Or did this guy intentionally manipulate him?
I don’t know.
But I know that Tyson could’ve avoided all of this if he knew how to keep his emotions in check.
Always Stay Calm and Objective
In Robert Greene’s classic book The 48 Laws of Power, Greene states in Law 39 - Stir Up Waters to Catch Fish - that,
“Anger and emotion are strategically counterproductive. You must always stay calm and objective. But if you can make your enemies angry while staying calm yourself, you gain a decided advantage. Put your enemies off-balance: Find the chink in their vanity through which you can rattle them and you hold the strings.”
This fan definitely rattled Tyson, and now $450,000 hangs in the balance.
How many times have we seen this? Not just from Mike Tyson but also in life?
Someone gets “offended” (lack of emotional control), they blow up with violence or a meltdown, and there’s hell to pay.
Losing your cool and having an angry outburst doesn’t ever get you to your goal. Lack of emotional control only harms you and those involved.
When we lose our calm, screaming and flailing like an idiot, we think we’re exerting some form of power by unleashing our anger and rage. However, nothing can be further from the truth. That’s the opposite of power.
After an anger-fueled meltdown, we aren’t feeling more powerful. Instead, we feel embarrassed and ashamed. Then, we have to go and apologize to those affected to undo the damage done–if it can be undone.
Not to mention that even though your apology may be accepted, there are scars left on the witnesses. Trust is compromised. They will feel uneasy around you and wonder if you’re stable.
The feeling of doubt about your ability to control your emotions is incredibly damaging to a reputation, bank account, business, and, in Mike Tyson’s case, an image.
The Importance of Emotional Control in Business
Business success is not linear. It’s full of ups and downs, peaks and valleys.
Emotional stability is critical for running a business or starting one. You must have a solid temperament to handle the never ending challenges and fires that must be extinguished.
If you have a meltdown every time a challenge pops up, you’ll have a breakdown.
Warren Buffett is the greatest investor of all time, with a net worth of $117.5 billion.
Read his thoughts on emotional control. Buffett says,
“I can’t recall any time in the history of Berkshire that we made an emotional decision. You don't want to be a no-emotion person in all of your life, but you definitely want to be a no-emotion person when making an investment or business decision.”
When you’re on the climb to business success, remove emotions altogether.
You can have your goals, deadlines, and metrics to hit without emotionally investing in those goals or the outcome. Emotions cloud our judgment. They prevent logic and clarity, which are vital to making the best decisions in times of crisis.
Image Courtesy of Finmasters
“One key: Don’t be emotional — at least in matters of business.”
Lack of emotional control is almost a guaranteed way for your business to fail.
Success Doesn’t Make You Invincible
Money and success don’t make you infallible or invulnerable.
And let’s say you’ve climbed your mountain and achieved the success you’ve always desired. Maintaining emotional control is even more important here–at the peak of your mountaintop–than it was on the climb.
Why? Because all of your hard work can be forgotten in a moment of weakness, and it’ll all come crashing down. Mike isn’t the only example of this.
Ezra Miller was cast as The Flash, and then, after many controversies ranging from abuse to disorderly conduct arrests, his career is in jeopardy.
Mel Gibson used to be one of the biggest stars in Hollywood. His fall from grace took place after being arrested for a DUI, where he went on a massive anti-Semitic rant in 2006, followed by a leaked tape of Gibson screaming racist remarks at his girlfriend in 2010. His career still hasn’t recovered.
At the 94th Academy Awards, Will Smith won Best Actor. But none of us remember that. We remember him slapping Chris Rock and screaming expletives from the audience. It earned him a ten-year ban from the Oscars.
And, of course, the R. Kelly interview. I could go on and on.
The point is, there is nothing worse than seeing a grown adult having a pure meltdown. It’s weak, pathetic, and, to most, comical.
While it’s tragic to see these stars fade, actions have consequences. And that’s the consequence of lacking emotional control.
And while these people are celebrities, and you may think you aren’t in the fame game, that’s not entirely true. We live in the social media age. These platforms turn “regular” people into stars all the time. People go viral every day.
Tread carefully. Your reputation is always on the line.
Image Courtesy of Lazarus Baptiste/CBS
The BMM Takeaway
Always control your emotions.
Controlling your emotions is a skill like anything else, and you can cultivate emotional control with repeated exposure.
Yes, it’s easier said than done. But it can be done.
Anything you practice, you get good at. And anytime you do something once, it becomes easier to repeat.
When you give in to the urge to lose your cool, don’t, otherwise, it’ll be easier to lose control of your emotions more and more.
The opposite is also true. When you choose to take a breath and calmly respond versus reacting to situations, you keep your power.
It’s okay to feel angry, sad, or frustrated. We’re human, and negative emotions are a part of the human experience. We can’t help but feel.
But emotions aren’t commandments, and we don’t need to let our temporary emotions make our decisions for us.
Never lose control of your emotions. Doing so could ruin your money, your reputation, and your future.
TLDR (Too Long Didn’t Read)
Always stay calm and objective.
Unleashing anger isn’t powerful. It’s a lack of power.
Never make business decisions with emotions.
All of your hard work can be undone with one moment of emotional weakness.
Calmly respond to situations. Don’t react.