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

Buffett Wouldn't Play Another Man's Game

We've talked before about the pressure people were putting on Buffett right before the dot com bust, saying that he was missing out on the greatest boom in history etc. We all know he had the last laugh there.

There is an important point to make as far as business leadership goes, and Buffett said it this way: “I can’t play the other guy’s game ... I know what I know what to do.”

You can't play a game where you have no idea what the rules are. It's impossible to get a handle on areas unconnected to our businesses. There's enough information load within our respective fields to have a hard enough time keeping up with as it is.

What we need to do as managers and leaders is just become great at the market we do serve. To attempt to compete in unfamiliar territory with "sharks" that have been swimming and feeding in those waters for years, doesn't make any sense for a business whatsoever.

We really must watch out that we don't stretch ourselves outside of our expertise. If new information comes along within our field of expertise, of course we must look at it and learn how we need to respond. That's a lot different than running after an area we don't know much about because it's an "opportunity." Opportunities are the most dangerous thoughts that can run through our heads. It can make fools out of otherwise smart business people.

Think of professional athletes who attempted to cross over to other sports. While there may be a few exceptions to the rule, the majority try and fail miserably. They simply are outside their area of knowledge and expertise. We need to have the discipline to stay within ours. Buffett has rarely, if ever, walked outside the lines of what he knows.

Berkshire Hathaway (BRK-A) performs so well over the long term for this very reason.

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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