Warren Buffett and Secrets of Management - 28
Occasionally I dip my foot back in the incredible importance of sticking to what it is the company stands for. With Buffett, he always is looking for companies that are managed by those that will stick to what it is that they do the best.
A little while ago I used the fiasco at Wal-Mart (WMT) to sum it up the best. What is it that Wal-Mart does best? Low prices. There is nothing that the company gets involved in that should change that ever. When they did recently, the giant 
company staggered under the weight of the poor decision.
Even a huge company like Wal-Mart will be brought to its knees when they get off of this simple but powerful reality. Why would anybody want to go into something that they don't know much about and attempt to compete? Just like Wal-Mart is good at what they do if they stick with it. So is Target (TGT) in their specific strengths.
This is something that can't be talked about enough or remembered all the time within a company. A colleauge says it like this: stick to your knitting. Stick with that which you know and are good at.
The businesses and managers that have the best returns over time, are for the most part those that are doing today what they did five or ten years ago. I'm talking about purpose, focus and doing the job we know how to do ... not saying within that context there won't be change or innovation. It's just that change and innovation will occur within your purpose and expertise, not go off chasing something disjointed from the business.
Let everybody else go chasing after the next new thing, we need to stay with what we know and commit to that.
Other Buffett Resources:
MSU students have special visit with billionaire Warren Buffett
Sticking to what you know - Core businesses
Buffett: Portrait of an Artist as a Young Man
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