Jun 25, 2016 10:45 AM EDT

Warren Buffett: Top 5 Leadership Lessons To Learn From The Investor

American business magnate, investor and philanthropist Warren Buffett is the chairman, CEO and largest shareholder of Berkshire Hathaway. He has been named as one of the world's wealthiest people as well as one of the world's most influential people.

He is often referred to as the "Wizard of Omaha," "Oracle of Omaha" or "Sage of Omaha." Buffett is widely known for his value investing and for being frugal despite his wealth.

According to Entrepreneur, Warren Buffett is currently worth over $65 billion. The 85-year-old CEO recently made headlines when he made a surprising $1 billion investment in Apple stock. The publication listed down 5 leadership lessons that every entrepreneur can learn from the master investor.

1. Stick to your area of expertise and take advantage of it.

Buffett's value investing strategy is to place his money on stocks that were undervalued by the market but have good intrinsic value. He then waits for the market to recognize its value. Although his approach sometimes takes years to payoff, Warren Buffett has admitted that he is willing to take a certain payoff over a big but unclear one any day.

2. Stand firm on your principles.

The master investor has been a long-time supporter of a tax hike for rich people. He has suggested that the government should make two new tax brackets for those who make over $1 million and $10 million.

"My friends and I have been coddled long enough by a billionaire-friendly Congress," he wrote in a 2011 op-ed in The New York Times. "It's time for our government to get serious about shared sacrifice... while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks."

3. Use your mistakes as lessons.

Buffett learned from his mistake when he was 11 years old. It was the first time that he invested on three shares of a stock at $38 per share. He then sold it at $40 for a small profit, only for the stocks to rise at nearly $200 a share. He referred to this experience as a lesson for patience in investing.

4. Help others.

He is widely known as a philanthropist and has supported at-risk youths, education, prison education, homelessness as well as animal welfare. He has also developed The Giving Pledge, his campaign with friends Bill and Melinda Gates.

5. Be honest and transparent.

Warren Buffett publicly shared his health condition about having Stage 1 prostate cancer in 2012. He wrote a letter to shareholders in April that year even though the news would affect the value of his company's stocks.

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