Luck may seem like the least tangible, least controllable success factor. After all, what can one do about luck? But there's a perfect example from Buffett's business history that Kass shared with CNBC, showing how those who believe in luck are also on the lookout for luck when it delivers an opportunity into their lap:
When Buffett was a 20-year-old MBA student at Columbia University, he learned that his hero, Professor Benjamin Graham, was the Chairman of the Board of GEICO. Since Buffett was interested in anything that Graham was interested in, he took a train to Washington from New York (1950), arriving on a Saturday morning. Without calling or writing ahead of time, Buffett was very lucky that one employee was there, Lorimar Davidson, who spent four hours explaining both insurance and GEICO to Buffett. Buffett immediately grasped that GEICO would have an enduring competitive advantage. (Davidson subsequently became CEO of GEICO.) Insurance later became the primary business and building block of Berkshire Hathaway.
"Warren Buffett has stressed the importance of luck in his life, focusing not only on where he was born but also when. His primary skill of allocation of capital has worked well for him in the United States and in his lifetime," Kass said.
Michael Mauboussin, a managing director and head of global financial strategies at Credit Suisse and author of "The Success Equation," which looks at the role of skill and luck, said Buffett's example reveals something fundamental about business greatness: Positive outliers, including Buffett, "are the product of lots of skill and lots of luck ... in business dealings."