Individuals and groups are capable of pushing themselves much further than they think. Good leadership involves pushing people to achieve more, but not beyond what they are truly capable of.

Character matters in business and leadership. If you have the opportunity to do someone a favor and it’s not too difficult for you, do it. Treat people well, even if you have to deliver tough messages. It makes a difference in the long run.

When faced with challenging business situations, don’t just accept the first answer that there are no solutions. Push your team to work together to come up with creative ways to solve difficult problems. Often they will surprise you with what they can accomplish.

As a leader, it’s important to do the right thing for the long-term success of the company, even if it’s expensive in the short term. Cote invested billions to clean up Honeywell’s environmental liabilities, which was costly but transformed the company’s reputation.

The two most important factors when evaluating a company to invest in are: 1) Having a great market position in a good industry, and 2) Having a highly capable leader at the helm. If you have those two things, the company is likely to perform well over time, even if the stock seems expensive.