Warren Buffett and Secrets of Management - 59
The things that have made Buffett probably the greatest investor of all time, is the same thing that makes him a great manager as well. He is completly objective when it comes to analyzing whether a business should be bought or invested in by Berkshire Hathaway (BRK-A). The only thing that he does is look at numbers in a disinterested way and let's them tell the story.
He also has an emphasis upon what many today would consider "yesterday." Things like hard work, integrity, character and honesty. Even when the cold, hard facts come out in the numbers that tell him a story, it's never the deciding factor in his decision-making. The final piece of the puzzle is the management of a company itself.
His way of looking at it is that managment, owners and workers have to share a mutual interest and responsibility in the outcomes to have a chance to work. If that isn't there, he won't enter into partnership with the company through buying it or investing in it.
What is interesting though, is that when the numbers tell their story (and they do tell a story), many times it's the management in charge that made the story happen. For the most part the character traits in the management line up with the story told; but not every time.
If a person doesn't have ownership in a business, they will never function to their fullest abilities. By owership, I'm not just talking about a percentage of the profits of the company, but ownership in believing what the company represents and stands for.
When we or our managers or workers don't have ownership in the company, it's imperative that we find out why and take immediate steps to remedy the reason. The result will bring about people that will take real interest and responsibility in the outcome of the business, and will do anything to ensure it happens.
Other Buffett Resources:
Investment Whiz Kid: Buffett Amasses a Fortune
Management Styles - The Buffett Way: Learn from the maestro himself
Brand names Commodity companies
THE REAL GENIUS OF WARREN BUFFETT
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