I recently read an article about 20 M.B.A. students traveling to visit with Warren Buffett. Regarded as one of the most successful investors in the world, what investment wisdom do you think he shared?
For Buffett, investing isn’t just about financial returns but also emotional ones. Treating people well, showing compassion, and understanding their differences can yield huge dividends over time, perhaps more than what you’d gain in financial rewards. And at the foundation of those types of returns are communication skills.
Buffett shared with the group the importance of communication and how, early on in his career, he realized the need for improvement and took a course to polish his speaking skills. His first significant investment, if you will. And according to Buffett, that investment has had huge returns.
Buffett noted that effective communication skills, such as speaking publicly, are invaluable. And what about when we aren’t talking at a podium or in front of a large audience? We have conversations instead. And understanding how to be an all-around effective communicator was the focus of the Neurochemistry of Positive Conversations—an article in the Harvard Business Review.
As with serotonin, the chemical in the body associated with happiness, there is more neuroscience to help explain how something said in a conversation can affect us. For example, would you rather hear, “You continue to amaze me” or “Just do as you are told”?
When we face criticism or fear, such as disapproval from a boss or a disagreement with a co-worker, our bodies produce higher levels of cortisol, which is a hormone that makes us more sensitive to the pain caused by negativity. And worse, this effect can stay with us for as much as 26 hours! But on the flip side, there is hope!
A different chemical reaction occurs when we make positive comments, such as providing supportive feedback. That is because oxytocin, the hormone that helps us feel good, enhances our communication ability. You can see this change in someone’s face, body language, and speech.
Consequently, 20 Boston College M.B.A. students discovered a new meaning to the word investing.