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

Warren Buffett and Secrets of Management - 41

The last several posts we've been talking about ways to avoid becoming a commodity business that puts one in the position that they can only compete on price. We'll talk this post about one of the tremendous benefits of being in this enviable position.

One strong example is concerning the economy. He literally has no care about the current condition of the economy and spends no time or energy whatsoever analysing it. This is the power of what we've been talking about in managing a company the way Buffett and his executives do.

They're so confident in the way they manage and the business they're in, that the thought of the economy or other forces really doesn't come into play. The only thing Buffett mentions in reference to the economy is that it has a built in inflation bias. That's the extent of his attention to it.

With competitors it's pretty much the same thing. Sure, you're aware of who's out there and what they're doing, but when you have a business that's not a commodity, you're protected from the vast majority of competitive forces that exist.

The bottom line is that you take care of the business you're running, with its competitive advantages, and let your competitors worry and fret about you.

It's one of the reasons I'm still puzzled by people that act like a herd. I understand it from the consumer way of doing things, but from a business point of view, we shouldn't run a business based upon the 'everybody-else-is-doing-it sort of thing. It can get you in trouble quick.

Other Buffett Resources:

Wisdom of Warren Buffett

Warren Buffett, investor

Warren Buffett: The trouble with being a legend

Warren Buffett: 'I told you so'

Company growth

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