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

Some People Never Get It

While Warren Buffett and Berkshire Hathaway (BRK-A) never make any secret of what their strategy is for the company, or what is the motivator behind purchasing companies or stock in companies, you still get people talking as if they've never heard what has been openly discussed for decades.

A person commenting on Berkshire said this about their investments in some under-performing companies:

"If an investor realises that he has made some bad bets in the past, he would try to exit those positions. Berkshire has not revealed any plans to exit under-performing businesses. The company has also not undertaken, or not disclosed, any exercise to review its large portfolio of businesses."

The type of statement made above probably comes across Buffett's desk several times a day. Some people simply never get it. These are statements of fear and of types that would bounce in and out of markets trying to time things; something proven to be a poor strategy, even by those that do it the best.

Buffett's response is the same as any other time: he never moves off of his purpose and strategy. Think of it ... why would he? It works better than anything in history has proven so far in reference to investing. You don't move off this stuff.

For example, with Coca Cola (KO), he has said it's never for sale. So what does someone like the person commenting above say about that? Oh, it's been down for a couple years, sell it! Sure they would. But that's why they're not Buffett or get his results, and also why they're not running Berkshire Hathaway.

What do we do with those that never get it? Nothing. Who cares? When you consider it, it's irrelevant to what the company does. The reason I even bring it up is that there are tremendous pressures on many businesses and managers in different areas than this, which give in to these arm chair prophets and make changes even if it is contrary to the core values of the company.

We need to resist ever doing this and keep on going on the narrow path that brings us to success.

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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