Warren Buffett and Secrets of Management - 6
Warren Buffett has a philosophy that he doesn't waver from in his own Berkshire Hathaway Company (BRK-A), and also insists upon with the managers of the other companies under their umbrella: Don't think in the terms that "Everyone Else is Doing it." He considers it one of the most dangerous thoughts connected to business and management that there is.
What's the problem with this attitude? It assumes that "Everybody Else that's Doing it," knows what they're doing. It assumes they know how to read the current climate and truly understand what's going on. That's a disastrous thought when you think about it and look at it.
The reason why Berkshire has been one of the great all-time successes in business history, is largely based upon this one simple statement and living by it.
Those that don't adhere to it base a lot of their business on being ruled by emotions and feelings, rather than looking at the reality of what really is happening or exists. That's one reason why there can be such huge fluctuations in a company's history as it sways back and forth following the next "big" thing.
Sometimes management can even be so consumed by wanting something to be true, that they can look at the numbers and the underlying principles, and even if they don't make sense, will make decisions based upon them because they want it to happen so bad. The reason why? Because everybody else is doing it!
Other Buffett Resources:
MSU students have special visit with billionaire Warren Buffett
Sponsored link: The outsourcing every manager requires - Tampa Locksmith
Comment Preview