« Mary Kay Ash: She Never Wavered - 82 | Main | "Rigged" by Ben Mezrich Just Released »

Oct24
Warren Buffett and Secrets of Management - 169

“We can afford to lose money – even a lot of money. We cannot afford to lose reputation – even a shred of reputation…It takes 20 years to build a reputation and five minutes to ruin it.”


From the comment of Warren Buffett above, you can tell that the bottom line, overall, wasn't the most valuable thing to him. The bottom line had to be taken into account of course, but there will be no bottom line if the reputation of a business suffers.

As Buffett says, a lot of mistakes can be made, which could result in the loss of a lot of money. Most businesses, relative to the amount of revenue they generate, could say the same thing. But you lose your reputation, and there will be no money being made, as with your reputation will go your customers.

This is a reason why Buffett considered it so important that those in key positions in the company reeked of integrity and capability. Those are probably the two most important areas that a reputation could be lost in.

As a result, whether buying a business, or needing to hire managment within, it was the most important process of the business to ensure their reputation would be maintained at a high level at Berkshire Hathaway (BRK-B).

Warren%20Buffett%20We%20cannot%20afford%20to%20lose%20reputation.jpg

This isn't complicated, it just requires determination, due diligence and patience. There is probably nothing more important than having the right leaders in place in a company. Everything is built around it.

We need to have the same attitude as Buffett in this area: don't buy a company or hire someone you're not comfortable having in a management position.

One of the key requirements for buying a company by Buffett, was being comfortable with who was managing it. If the management didn't meet his requirements, he wouldn't buy the company. The two were interconnected, and Buffett knew it.

The success of any company is based upon this reality, and we need to embrace it and live it as Buffett has and does.

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

Remember to Sign up for my feed

Sponsored link: The outsourcing every manager requires - Tampa Locksmith


0 Comments/Trackbacks




submit a trackback

TrackBack URL for this entry:

post a comment

Name, Email Address, and URL are not required fields.





Comment Preview

« Mary Kay Ash: She Never Wavered - 82 | Main | "Rigged" by Ben Mezrich Just Released »

Advertise

sponsored ads



subscribe


Prefer Email?
Subscribe below-

Enter your Email:


Powered by FeedBlitz What's this?

Current News

Support This Blog

My site was nominated for Best Business Blog!

I'm a C-list Blogebrity

business social media

Use these fast growing business social media sites to promote your business, feature your products, spotlight your business leaders, create links, and drive traffic back to your company site, all for free!

BIZZlogos - Add your logo - free link to your site
BIZZphotos - Add photos of your products and people
BIZZprofiles - Submit your profile and build your online visibility
BIZZspotlight - Spotlight your business with free links
BIZZvideos - Videos about businesses, products and business people.
BIZZbites - "Digg" for Business - Submit your articles and posts

know more media network

View Network Map

Network Feed List (OPML)

Know More Media Network
Feed


we support unitus

PRWeb

Influencer



ManagersRealm is a member of the Know More Media network of business related blogs.

Here are some current headlines from some of our business publications:

ProductivityGoal

CallCenterScript

AdHurl

TheBizofKnowledge

LandingTheDeal

CustomersAreAlways

HealthCareVox

BrainBasedBusiness

TheInsurancePolicy

MarketingBlurb