We just try to do smart things every day, and if there's nothing smart, then we sit on cash.
Buffett was obviously talking about investing the money of the company here. But there is an important correlation between running a business that's important as well.
Maybe the biggest thing talked about in business today, as far as strategy, is the "blow everything up" type of talk. Basically it's talking about how we can't stand still and be complacent, which in general is true. But there's another side of that for those who take this too far that needs to be talked about.
While we definitely need to be thinking of constant ways of improving our businesses and adding new products or services, it must be done wisely, and not haphazardly, like many that respond to this eventually learn the hard way.
The key to it is being smart. Like Buffett said, "We just try to do smart things every day." Doing things smart means knowing what business we're in and why. If there's nothing that comes around or to mind that makes sense to our purpose, then the only strategy we need to employ at the time is to do nothing.
Many managers mistake activity for advancing the cause. Just because we're busy doing something doesn't mean we're doing something smart for the company.
So creative destruction and things like that, still need to make sense to a company. We shouldn't break everything for no other purpose than to break it. There are times when nothing smart is coming up and we need to simply sit until it does.
It's one of the major reasons Berkshire Hathaway (BRK-A) has performed so consistently for so long.
Other Buffett Resources:
MSU students have special visit with billionaire Warren Buffett
Sticking to what you know Core businesses
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