The Two-List Method: Warren Buffett’s Approach to Priority Decision Making

Master Focus Decision Making with Warren Buffett’s Simple Yet Powerful Strategy

The two list method transforms how professionals prioritize their goals by forcing clear choices between what matters most and what merely seems important. This deceptively simple approach, attributed to Warren Buffett, has helped countless busy professionals escape the trap of spreading themselves too thin across too many objectives. For knowledge workers juggling career ambitions with family responsibilities, this framework offers a structured way to achieve meaningful progress on what truly counts.

What You Will Learn

• The Origin and Core Principles of the Two-List Method
• Step-by-Step Implementation Guide
• Why the Avoid-at-All-Costs List Works
• Common Pitfalls and How to Overcome Them
• Adapting the Method for Different Life Contexts
• Integration with Other Productivity Systems

Key Takeaways

• The two-list method requires identifying your top 25 goals, then ruthlessly focusing on only the top 5
• Your secondary 20 goals become an “avoid at all costs” list to prevent diluted effort
• Success comes from saying no to good opportunities to say yes to great ones
• The method works because it acknowledges that time and attention are finite resources
• Regular review and adjustment keep your priorities aligned with changing life circumstances

The Origin and Core Principles of the Two-List Method

The story goes that Warren Buffett once advised his personal pilot, Mike Flint, on career priorities using this method. While the exact details may be apocryphal, the wisdom embedded in the approach reflects Buffett’s well-documented philosophy of extreme focus and selective investment of resources.

At its core, the two list method recognizes a fundamental truth about human limitation: we cannot do everything well. By forcing a clear distinction between primary and secondary priorities, this framework prevents the common mistake of pursuing too many goals simultaneously.

The Psychological Foundation

The method works because it addresses several cognitive biases that sabotage effective prioritization:

1. The Planning Fallacy: We consistently underestimate the time and resources required to complete tasks. By limiting focus to just five priorities, the method builds in a buffer for this natural tendency.

2. Opportunity Cost Blindness: Every yes to one thing is a no to something else. The “avoid list” makes these trade-offs explicit rather than leaving them to chance.

3. The Paradox of Choice: Too many options lead to decision paralysis and reduced satisfaction. Constraining choices to five top priorities simplifies decision-making throughout each day.

Step-by-Step Implementation Guide

Phase 1: The Brain Dump (25 Goals)

Start by listing 25 things you want to accomplish in your career, personal life, or specific timeframe. This comprehensive list should include:

• Career milestones and professional development goals
• Financial objectives and wealth-building targets
• Health and fitness aspirations
• Relationship and family priorities
• Personal growth and learning objectives
• Creative projects and hobbies
• Community involvement and contribution goals

Pro tip: Set a timer for 20 minutes and write continuously. Don’t self-censor during this phase – capture everything that feels important to you.

Phase 2: The Selection Process (Top 5)

Review your list of 25 and circle the five most important goals. This step requires brutal honesty about:

• What will have the greatest positive impact on your life
• Which goals align most closely with your core values
• What you’re genuinely willing to sacrifice for
• Which objectives enable or unlock other important outcomes

Consider using a time audit guide to understand where your time currently goes before making these crucial selections.

Phase 3: Creating the Avoid-at-All-Costs List

The remaining 20 items become your “avoid list.” This isn’t a someday/maybe list – it’s a collection of distractions that will prevent you from achieving your top five priorities if pursued.

Top 5 Priority List	Avoid-at-All-Costs List (20 items)
Active focus items	Conscious rejection items
Daily attention required	No time or energy allocated
Progress tracked regularly	Revisited only during quarterly reviews
Resources invested here	Opportunities declined here
Success measured and celebrated	Removed from immediate consideration

Phase 4: Execution and Protection

With your lists established, the real work begins: protecting your top five priorities from the constant intrusion of the other twenty.

Why the Avoid-at-All-Costs List Works

The genius of Buffett priorities lies not in identifying what’s important, but in explicitly defining what to ignore. This counterintuitive approach succeeds for several reasons:

1. Elimination of Decision Fatigue

By pre-deciding what not to pursue, you conserve mental energy for executing on your true priorities. Each time an opportunity from your avoid list appears, the decision is already made.

2. Prevention of Goal Dilution

Good opportunities are often the enemy of great ones. Your avoid list likely contains many worthwhile pursuits – that’s exactly why they’re dangerous. They’re appealing enough to steal time and energy from your most important objectives.

3. Creation of Productive Constraints

Constraints paradoxically increase creativity and productivity. By limiting your focus, you’re forced to find innovative solutions within a defined scope rather than constantly expanding your commitments.

“The difference between successful people and really successful people is that really successful people say no to almost everything.” – Warren Buffett

4. Alignment of Daily Actions with Long-term Vision

The two list method bridges the gap between ambitious goals and daily choices. When faced with a decision, you can quickly evaluate: does this serve my top five, or is it from my avoid list?

Common Pitfalls and How to Overcome Them

Pitfall 1: The Top Five Are Too Vague

Problem: Goals like “be healthier” or “advance career” lack specificity.

Solution: Convert each priority into measurable outcomes with clear milestones. Instead of “be healthier,” specify “complete a half-marathon by October” or “reduce body fat to 18% through consistent strength training.”

Pitfall 2: Treating the Avoid List as a Waiting List

Problem: Viewing the 20 items as “next up” rather than “not now.”

Solution: Implement a quarterly review process. Only during these structured reviews should you reconsider your lists. Between reviews, treat the avoid list as firmly closed.

Pitfall 3: Social Pressure to Add Priorities

Problem: Others’ expectations push you to take on avoid-list items.

Solution: Develop standard responses that honor others while protecting your priorities:

• “That sounds valuable, but I’m fully committed to other projects right now.”
• “I’m honored you thought of me, but I wouldn’t be able to give this the attention it deserves.”

Pitfall 4: Lack of Integration with Daily Planning

Problem: The lists exist separately from actual scheduling and task management.

Solution: Use time blocking methods to allocate specific hours to your top five priorities. Create recurring blocks that ensure consistent progress.

Adapting the Method for Different Life Contexts

For Working Parents

Balancing career ambitions with family responsibilities requires special consideration:

1. Include family goals in your top 25: Don’t separate professional and personal artificially
2. Consider time horizons: Some family priorities may be age-dependent (e.g., coaching your child’s team)
3. Build in flexibility: Life with children requires adaptability within structure

Example Top 5 for a Working Parent:

1. Secure promotion to Director level by year-end
2. Establish consistent bedtime routine and reading time with kids
3. Complete professional certification in data analytics
4. Maintain date night tradition with spouse (weekly)
5. Build emergency fund to 6 months expenses

For Professionals with ADHD

The two list method can be particularly powerful for managing ADHD-related challenges:

• Reduces overwhelm: Clear priorities minimize decision paralysis
• Provides structure: External framework compensates for executive function challenges
• Enables hyperfocus: Channel intense focus toward predetermined priorities

Consider pairing this method with cognitive load management techniques to maximize effectiveness.

For Creative Professionals

Creatives often struggle with too many exciting projects. The two list method helps by:

1. Forcing project completion: Limiting active projects increases finish rate
2. Preserving creative energy: Avoid list prevents energy dispersion
3. Creating space for deep work: Fewer priorities mean more focused creative sessions

Integration with Other Productivity Systems

The two list method complements rather than replaces other productivity frameworks:

With Goal-Setting Frameworks

Combine with proven goal-setting systems by using the two list method for macro-level prioritization while applying SMART or HARD goals methodology to your top five.

With Time Management Methods

Layer your two lists with day theming to assign different days to different priorities, ensuring balanced progress across all five focus areas.

With Personal Planning Systems

The Personal BSQ Framework can help ensure your top five priorities maintain balance across life domains while still allowing for intense focus.

Measuring Success and Adjusting Course

Monthly Progress Reviews

Establish a monthly review ritual:

1. Quantify progress on each top-five priority
2. Identify obstacles preventing advancement
3. Adjust tactics while maintaining strategic focus
4. Celebrate wins to maintain motivation

Quarterly Priority Audits

Every three months, formally revisit your lists:

• Have life circumstances changed significantly?
• Has substantial progress made any top-five items complete?
• Do your priorities still align with your values and vision?

Annual Strategic Planning

Once yearly, start fresh with a new brain dump of 25 goals. This prevents staleness and ensures your priorities evolve with your growth.

Real-World Success Stories and Applications

Case Study: Tech Executive’s Career Transformation

Sarah, a product manager at a growing startup, used the two list method to navigate a critical career juncture. Her initial 25 goals included everything from “become VP of Product” to “learn pottery” to “start a podcast.”

Her refined top 5:

1. Lead successful launch of flagship product update
2. Complete MBA through evening program
3. Build strategic network in target industry
4. Maintain weekly exercise routine for energy
5. Preserve Saturday mornings for family time

By explicitly avoiding the other 20 items (including the appealing podcast project), Sarah achieved her VP promotion within 18 months while strengthening family bonds.

Application in Team Settings

While designed for individual use, teams can adapt the two list method for collective focus:

1. Department Planning: Identify 25 potential initiatives, then align on 5 for the quarter
2. Project Prioritization: List all feature requests, then commit to only the top 5
3. Resource Allocation: Define where not to invest as clearly as where to invest

Advanced Strategies for Long-term Success

The Cascading Priorities Approach

Once comfortable with the basic method, consider creating cascading lists:

• Life Priorities: 5 major life goals (10+ year horizon)
• Annual Priorities: 5 goals supporting life priorities (1 year)
• Quarterly Priorities: 5 objectives supporting annual goals (3 months)

This creates alignment from daily actions to life vision while maintaining focus at each level.

The Priority Partnership

Share your two lists with an accountability partner who can:

• Challenge additions to your top 5
• Remind you when avoid-list items creep in
• Celebrate progress on true priorities
• Provide perspective during quarterly reviews

Integration with Digital Tools

While the method requires no special tools, automated reminders can reinforce your priorities:

• Set daily reminders of your top 5
• Create calendar blocks for priority work
• Use project management tools filtered to show only top-5 related tasks

Frequently Asked Questions

Conclusion

The two list method offers busy professionals a powerful framework for focus decision making in an increasingly distracted world. By forcing clear choices between competing priorities, this approach enables meaningful progress on what matters most while explicitly protecting time and energy from appealing distractions.

Success with Buffett priorities requires more than just creating two lists. It demands ongoing discipline to honor your avoid-at-all-costs list, regular review to ensure continued alignment, and integration with your daily planning systems. Yet for those willing to embrace its constraints, the method offers a path to extraordinary achievement through extraordinary focus.

Whether you’re balancing career ambitions with family life, managing ADHD-related challenges, or simply seeking greater clarity in your goals, the two list method provides a proven structure for transformative results. Start today by listing your 25 goals, selecting your top 5, and committing to avoid the rest. Your future focused self will thank you.

Glossary

Two List Method: A prioritization framework requiring you to list 25 goals, select the top 5 as active priorities, and treat the remaining 20 as an avoid-at-all-costs list.

Buffett Priorities: Another name for the two list method, referencing its attribution to Warren Buffett’s advice on focus and decision-making.

Focus Decision Making: The practice of consciously choosing where to direct attention and resources for maximum impact.

Avoid-at-All-Costs List: The 20 items not selected as top priorities, which should be actively avoided to prevent dilution of effort.

Priority Cascade: An advanced technique linking life, annual, and quarterly priorities using the two-list framework at each level.

Goal Dilution: The reduced effectiveness that occurs when pursuing too many objectives simultaneously.

Opportunity Cost: The value of the best alternative forgone when making a choice between mutually exclusive options.

Cognitive Load: The amount of mental effort being used in working memory, which the two list method helps manage by reducing active priorities.

Further Reading

For deeper exploration of related productivity concepts:

• Learn about various time management methods to complement your priority focus
• Explore task management techniques for executing on your top 5 priorities
• Discover how habit formation techniques can automate progress toward your goals
• Master 21 ways to sharpen concentration for deeper focus on priorities
• Use mind mapping for brainstorming to clarify your initial 25 goals

References

1. Buffett, Warren. “2008 Berkshire Hathaway Annual Shareholder Letter” – Berkshire Hathaway Inc.
2. Clear, James. “Warren Buffett’s 2-List Strategy: How to Maximize Your Focus and Master Your Priorities” – JamesClear.com
3. Newport, Cal. “Deep Work: Rules for Focused Success in a Distracted World” – Grand Central Publishing, 2016
4. Duhigg, Charles. “Smarter Faster Better: The Secrets of Being Productive in Life and Business” – Random House, 2016
5. McKeown, Greg. “Essentialism: The Disciplined Pursuit of Less” – Crown Business, 2014
6. Vanderkam, Laura. “168 Hours: You Have More Time Than You Think” – Portfolio, 2011
7. Allen, David. “Getting Things Done: The Art of Stress-Free Productivity” – Penguin Books, 2015
8. Heath, Chip and Dan. “Decisive: How to Make Better Choices in Life and Work” – Crown Business, 2013