Look for 3 things in a person – intelligence, energy and integrity. If they don’t have the last one, don’t even bother with the first two.
Warren Buffett, the iconic investor and CEO of Berkshire Hathaway, built his empire on timeless principles. This famous piece of advice cuts through the noise of hiring and relationship-building. It offers a simple yet powerful framework for evaluating character. While many people focus on talent and drive, Buffett argues for a different foundation. He insists that integrity is the one non-negotiable trait. Without it, the other two qualities become liabilities rather than assets.
This wisdom extends far beyond the boardroom. It applies to choosing business partners, friends, and even leaders. Let’s break down this powerful quote to understand why these three traits matter and why integrity reigns supreme.
The Powerful Duo: Intelligence and Energy
First, let’s consider the initial two qualities Buffett mentions: intelligence and energy. On their own, they are incredibly attractive. Intelligence isn’t just about book smarts or a high IQ. In a practical sense, it’s the ability to learn, adapt, and solve complex problems. An intelligent person can analyze situations and devise effective strategies. They can connect disparate ideas and see the bigger picture. In any role, this capacity for critical thinking is a huge asset.
Energy is the engine that drives intelligence. A person can be brilliant, but their ideas are useless without the motivation to execute them. Energy represents drive, passion, and a proactive attitude. Energetic people make things happen. They don’t wait for instructions; they take initiative. Consequently, this combination of a sharp mind and a relentless work ethic seems like the perfect recipe for success. Many managers hire based on these two qualities alone, hoping for a star performer who can innovate and produce results.
Integrity: The Foundation That Holds It All Together
Here we arrive at the core of Buffett’s message. Why is integrity the linchpin? Integrity is the quality of being honest and having strong moral principles. It’s about doing the right thing, even when no one is watching. It means your actions align with your values, and you are accountable for your decisions. Buffett’s warning is stark: a person with intelligence and energy but no integrity is dangerous.
Think about it this way. A smart and energetic person without integrity will use their talents to cut corners, manipulate others, and serve their own interests. Their intelligence helps them find loopholes. Their energy helps them exploit those loopholes relentlessly. They become a liability that can destroy a team, a project, or an entire company’s reputation. Therefore, their positive traits are weaponized against you. Trust is the currency of all successful relationships, both personal and professional. Integrity is the bedrock of that trust.
The High Cost of Lacking Integrity
Businesses often learn this lesson the hard way. A single unethical employee can cause immense damage. This damage includes financial losses, legal troubles, and a collapse in team morale. In fact, unethical behavior carries a significant price tag. For example, occupational fraud costs organizations an estimated 5% of their revenue each year . These losses highlight the tangible risk of hiring someone who lacks a moral compass. Source
Ultimately, a person’s character determines how they will use their skills. Will they use their intelligence to innovate or to deceive? Will they apply their energy to build the team up or to tear it down for personal gain? Integrity provides the answer.
Putting the Principle into Practice
Understanding Buffett’s advice is one thing; applying it is another. How can you effectively gauge a person’s integrity? It’s rarely listed on a resume. Instead, you must observe their behavior over time and ask the right questions.
Look for consistency. Do their actions match their words? People with integrity are reliable and predictable in their principles. They honor their commitments. Furthermore, pay attention to how they talk about past failures or mistakes. Do they take responsibility, or do they blame others? Accountability is a clear sign of integrity.
When hiring, go beyond standard interview questions. Ask behavioral questions that reveal character. For instance, you could ask, “Tell me about a time you had to make a difficult ethical decision.” Their answer, and how they answer, can provide deep insight. Checking references is also crucial. Ask former colleagues and managers specifically about the person’s reliability, honesty, and teamwork. In summary, you must actively look for evidence of strong character, not just talent and ambition.