Warren Buffett and Secrets of Management - 60
Sometimes when we talk about Warren Buffett - either as a manager or an investor - it may seem that the style and way he looks at things could be tremendously boring. That would be a mistake made upon looking at things on the surface and not understanding the reason behind why he does what he does.
Saying that, Buffett isn't the type to be a gambler just to get some type of emotional kick or high, it has to make sense when decisions are made on behalf of 
the company and his shareholders.
If you know anything about the reinsurance business for example, and if you want excitement, it has the potential to deliver on that promise. When we had the recent terrible hurricane season, Buffett had to pay out substantial payments through his insurance and reinsurance companies under the Berkshire (BRK-A) fold.
His response was that the payments were significant, several billion, but they were in a strong position to be able to pay it through proper managment; yet it's something that a company couldn't endlessly take a hit on. Like Buffett says though, "We'll insure anything if you're willing to pay a high enough premium."
He's more than willing to take risks when the possibility of a total loss are low and the potential rewards are high.
The bottom line on risk is that it that it still must be managed and understood. The risk must be low versus the potential for large profits. It sounds so easy to understand and yet the majority business owners and managers don't properly measure this part of their businesses very well at all.
It's all about doing your homework thoroughly and a bit of cynicism on whether the figures you're coming up with make sense. Many times it's better to pass on what seems great opportunities for profits when there isn't a strong handle on whether you have enough information to make the decision.
Other Buffett Resources:
MSU students have special visit with billionaire Warren Buffett
Sticking to what you know Core businesses
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