Jay-Z And Warren Buffett Discuss The Pitfalls Of Falling For Hot Trends — 'People Tend To Make Emotional Decisions Based On What's Hot. They Don't Stick With What They Know'

Billionaire investor Warren Buffett and hip-hop mogul Jay-Z discussed their paths to success with Forbes Editor-in-Chief Steve Forbes in a 2010 meeting in Omaha, Nebraska. 

Though these titans hail from disparate industries — Buffett from investment and Jay-Z from music — there is a striking parallel in their stories and philosophies that provide valuable lessons for aspiring entrepreneurs, artists and investors.

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Starting Early And Finding Your Passion

Buffett attributed a lot of his success to getting an early start. He was "lucky" to have a father in the investment business, which piqued his interest from a young age. By age 7, he was reading books on investment.

"I knew what I wanted to do early," Buffett said. "That's a huge advantage."

Jay-Z found his passion later in life, with his first album not coming out until he was 26. He, too, had an early affinity for words and music, thanks to a sixth-grade teacher who saw potential in him.

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Emotional Stability And Independent Thinking

Buffett doesn't believe you need to be exceptionally intelligent to succeed in investments. 

"What you need is emotional stability," he said. 

The ability to think independently, avoid herd mentality and stick with your convictions even when others disagree are traits Buffett considers crucial. 

Jay-Z echoed this sentiment, noting that in music, it's essential to find "the truth of the moment." It's about "having the discipline and the confidence in who I am," he said.

The Importance Of Discipline And Avoiding ‘Shiny Things'

Both Buffett and Jay-Z emphasized the importance of discipline in their respective fields. Buffett, inspired by his mentor investor Ben Graham, advocated for a cautious approach. 

"The first rule is don't lose, and the second rule is never forget the first rule," Buffett once said. 

Jay-Z also pointed out the pitfalls of going after the "hot thing of the moment." In music, like in stocks, it's easy to get distracted by the latest trends, leading to poor decisions. 

"People tend to make emotional decisions based on that," Jay-Z said. "They don't stick with what they know."

This wisdom aligns well with investing platform Public's recent initiative, which offers investors a unique way to diversify their asset mix. Adding music royalties from a catalog of 768 composition tracks, Public provides an asset that generates cash flow and offers quarterly dividends. Unlike volatile assets like trendy stocks or cryptocurrencies, music royalties exhibit a low correlation with more traditional investment options, such as stocks and bonds. Consequently, they not only offer the prospect of solid returns but also act as a counterbalance in a diversified portfolio, helping to lower risk and decrease volatility.

Circle Of Competence And Staying True To Yourself

Buffett advises sticking to your "circle of competence," focusing on what you know best. Jay-Z also found his unique voice by being genuine and avoiding attempts to cater to a certain demographic. 

"I'm going to mature with my music," Jay-Z said, alluding to the evolving landscape of hip-hop and his own role within it.

Business Acumen

Jay-Z shattered the stereotype that artists can't be good businessmen. 

"That was the greatest trick in music that people ever pulled off," he said. 

By separating the creative process from business, Jay-Z has sustained a long-lasting and successful career. Buffett, on the other hand, was "wired for capital allocation," and he acknowledges the role of luck and timing in his success.

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