Devoted to Managers and those that seek to improve their management skills

Warren Buffett and Secrets of Management - 48

Buffett had a saying that is quoted a lot concerning fear. He said it like this: "Be fearful when others are greedy and greedy when others are fearful."

He was talking about investing in companies, and by extension, investing in managements. Why did he make this comment? When people are greedy, usually they've got wind of something that has been going around for a while. Like most other things, once you've heard about it, it's already too late. But greedy people aren't rational people and so get involved through emotion, rather than due diligence.

At the same time, when many people are somewhat paralyzed because of fear, it means that they aren't seeing the opportunities out there, and so are playing it safe at the wrong time.

For a manager growing their company, it is a powerful truth to understand that can keep you ahead of you competitors on all fronts.

When the majority of companies are fearful and aren't sure what to do or where to go, you can be sure that opportunities abound for those that understand their business and run it objectively. There's nothing to fear at that time, and you should, as Buffett says "get greedy." In other words, that's the time to go full speed ahead with the plans you've had in place for times like this.

A good recent example of this is The Walt Disney (DIS) company. The majority of their competitors were in disarray, fearful, paralyzed and doing nothing. Disney decided that they would embrace the changing realities of the entertainment world and went full speed ahead with the new media.

As a result they've been selling tons of product such as downloaded movies while their competitors are still deciding whether they want to partner with certain people or not. They're trying to figure out how to continue the revenues that their old business models produced, while Disney has forged ahead and is attacking the market.

Even after selling millions of downloads through Apple iTunes (AAPL), only one other competitor (Paramount) has made a deal with them to do the same thing.

Disney is getting into all sorts of things and already revamping some of their online properties while their competitors are still deciding whether to do something they've been doing for months already. Disney is already a generation ahead of them while they're muddling around. Disney got greedy when everyone else was fearful, and it's paying off in a big way.

Other Buffett Resources:

Investment Whiz Kid: Buffett Amasses a Fortune

Management Styles - The Buffett Way: Learn from the maestro himself

Understanding the Company

Brand names Commodity companies

THE REAL GENIUS OF WARREN BUFFETT

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