Learning From Professor Buffett and Ted Kennedy

Don Dion is president and founder of Dion Money Management, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Mass., Dion Money Management manages assets for clients in 49 states and 11 countries. Dion is a licensed attorney in Massachusetts and Maine and has more than 25 years' experience working in the financial markets, having founded and run two publicly traded companies before establishing Dion Money Management.

Dion also is publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors his commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 100,000 subscribers in the U.S. and 29 other countries, Fidelity Independent Adviser publishes six monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers.



NEW YORK (TheStreet) -- With the recent passing of Sen. Edward Kennedy, many are looking back on the impact he made during his time in Washington as well as the legacy he has left for the future of the nation. Whether you loved him or hated him, it's hard to argue that his leadership skills weren't top-notch and that his influence won't last a long time.

In this recent blog entry, Harvard Business School Professor Rosabeth Moss Kanter discusses four leadership lessons that can be learned from Kennedy's life. Interestingly, these same lessons can be gleaned from observing another influential U.S. citizen: Warren Buffett.

Kanter writes the first lesson we can learn from Kennedy is that performance is everything. Although his last name would have allowed him to go wherever he wanted in Washington, Kennedy refused to rely solely upon it. Rather, through hard work and dedication, Kennedy managed to rise to the top. As Kanter notes, the senator understood that no one is entitled to any position and, therefore, if he was going to stay in office, he needed to do the best he could for his constituents.

Like Kennedy, Buffett made a name for himself through hard work. The Berkshire Hathaway(BRK-A:NYSE) chief conducts extensive interviews and lots of research before every investment decision he makes. By knowing the ins and outs of the firms in which he invests, Buffett has been able to deliver unrivaled performance for his Berkshire's shareholders.

Kennedy's work was not just for his own self-gratification, notes Kanter. Rather, he sought out a higher purpose with his actions, she writes. Kennedy used his powerful voice to speak for those who couldn't speak for themselves. This is evident in his push for health care reform as well as his work on education and helping children.

Through his philanthropic giving, investments and writing, Buffett has also shown that his goals lie far beyond himself. In a recent opinion piece for The New York Times, Buffett wrote about the threat the mounting U.S. debt poses to the nation. Although Buffett -- known as the Oracle of Omaha -- has made a hefty profit off this same growing debt, his warning shows that he is more concerned for the welfare of future generations than the depth of his purse.

Buffett's enormous charitable contribution to the Gates Foundation puts into perspective how important it is to Buffett to aim for a higher purpose with his work. In 2006, the billionaire announced that he would gradually begin giving away 85% of his wealth in the form of Berkshire Hathaway shares. The majority of the shares will go to the Bill and Melinda Gates Foundation, which is focused on world health as well as improving libraries and high schools in the U.S.

The third lesson to be gained from Ted Kennedy's life is to keep going, Kanter writes. Never one to avoid controversy, the Lion of the Senate weathered a number of storms that would have destroyed almost everyone else, she notes. However, even with the mysterious events that occurred at Chappaquiddick and his fumbled bid for Democratic presidential candidate in 1980 weighing on his reputation, Kennedy's dedication to his work helped him maintain the support of his followers.

Buffett has made his fair share of questionable decisions as well. In fact, up until recently, some were asking whether the investor was beginning to lose his touch. He was a strong voice for bailing out the U.S. financial system when others were viewing the situation as hopeless. In fact, when companies like Goldman Sachs(GS:NYSE) and GE(GE:NYSE) were on their backs, he decided to personally step in to buoy the sinking firms. As it turns out, these same controversial decisions have earned the investor billions of dollars for his shareholders.

Lastly, notes Kanter, Kennedy's life taught us that we should never forget our family. Even as one of the most dedicated members of the Senate, Kennedy still found time to be the father figure for not only his children but also the children of his late brothers and sisters. The love of his family was what helped him through the toughest losses and challenges he faced on his way.

Buffett's own family can be expanded beyond biological ties to all clients and individuals to which the brilliant investor is connected. Through my own interactions with him at NetJets events, I can say that Warren is a warm hearted, genuine individual. He knows the importance of staying close and connected to those around him and does so with his various meetings, famous letters and speeches.

As it turns out, although Buffett and Kennedy come from very different professional and personal backgrounds, the two have a lot in common when it comes to being great leaders. Individuals can learn a lot by looking at the lives of these two gentlemen.

Luckily for us, these lessons do not require exorbitant amounts of money or radical changes to learn. Rather, through dedication and hard work they can be achieved today.

-- Written by Don Dion in Williamstown, Mass.