Warren Buffett and Secrets of Management - 44
In his investment strategies for Berkshire Hathaway (BRK-A), Warren Buffett has another rule of thumb when it comes to investing: Don't buy into or buy companies that are natural targets of regulation.
The reason is of course it takes the steeing ability of company away and puts it into another's hands. It's like starting any sporting event with a minus handicap.
How this relates to managing a business is in connection to products or services that are even thought of being created. This is one of the first questions a business leader needs to ask themselves. Is there any regulatory hurdles that would have a great chance of being implemented with what you're going to offer? If the answer is yes, the best thing to do is drop it and go in a different direction.
The key here is simply understanding the implications of what you are planning and if it could enter into that grey, regulatory atmosphere that can either keep you in limbo for years, get you sued much easier, or cost a lot to protect you from potential fallouts.
It's really not worth the time and effort to get into. Be extemely aware of the potential consequences of your proposed products and services; it's even more important today than ever.
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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