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Dec27
Warren Buffett and Secrets of Management - 177

He set out to understand everything about both himself and the business he was venturing into before making a move.


The idea of understanding a business we're looking at running, buying or managing within may sound obvious, but in reality, very few take the effort and time to do this before making a decision on what to do.

Usually the reason is they make an emotional rather than rational decision, undercutting their ability and will to look under the hood at what's really there.

While performing due diligence when looking at buying a business should be standard operating procedure for all of us, it's surprising how many people don't think this way when looking at being hired for managing within a company. Even what category of business you enter into has a great impact on your career. Many people wanting to be business leaders don't understand this.

Sometimes choosing the wrong field in business already sets you up for failure, regardless of how good you may be, or potentially may be in leadership.

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Dec27
Did the West Reach too far with Benazir Bhutto?
With the assassination of former Pakistani Prime Minister Benazir Bhutto, the question must be asked if the United States and the West attempted to reach too far, too quickly with Bhutto.While we must consider that Bhutto was an adult and... Continue Reading
Dec26
Toyota Motor Looking to Emerging Markets for 2008 Growth
After Toyota Motor Corp. (TM) passed General Motors (GM) as the leading automaker this year, they're not resting on their laurels, as they're looking at emerging markets to increase growth in 2008.With U.S. auto sales expected to be down in... Continue Reading
Steve Jobs: The Captain of Cool - 37
The Steve Jobs Persona and MessianismIf nothing else, Steve Jobs has such a reputation, that it borders on messianism in the eyes of many people. Jobs has been able to spin that aura around himself, some by his rhetoric, and... Continue Reading
Berkshire Hathaway Announces $4.5 Billion Acquisition of Marmon Holdings
Warren Buffett-led Berkshire Hathaway (BRK-A) announced it was acquiring a 60 percent stake in Marmon Holdings Inc. for $4.5 billion. Marmon is a privately held manufacturing and services company.Marmon, which generates approximately $7 billion yearly through a wide variety of... Continue Reading
Mary Kay Ash: She Never Wavered - 91
She never was embraced by feminism!Here's how one woman writing about Mary Kay wrote concerning the feminist rejection of her:  "She should have been a feminist icon: a beautiful, savvy businesswoman who gave women the power to 'have it all'--without abandoning... Continue Reading
U.S. Single-Family Home Prices in Largest Monthly Drop Since 1991
For the tenth month in a row, home prices in the U.S. dropped, with data for October showing the largest drop since 1991, according to Standard & Poor's/Case-Shiller home price index. It's also the 23rd month in a row where... Continue Reading
Dec23
The Jack Welch Management Mystique - 88
Used GE's own management expertise to help its customers better run their businesses.One thing Jack Welch implemented at General Electric (GE) during his tenure there, was the creation of a state-of-the-art training center. There were two key reasons for doing... Continue Reading
Dec22
Andy Grove: Only the Paranoid Survive - 43
"The new economy defies compartmentalized measurement."It's amazing to see even till today, the measuring or metrics are as difficult as ever to get a handle on, as Grove made this comment years ago.Andy Grove was sometimes underestimated as far as... Continue Reading
Oprah Winfrey: "We Are Each Responsible For Our Own Life" - 9
"As you become more clear about who you really are, you'll be better able to decide what is best for you - the first time around."What's important about Oprah Winfrey's statement is not when in your life you discover this,... Continue Reading
Housing Problems leads the list of Top Business Stories in 2007
There can be no doubt that the U.S.-related housing problems are the biggest business story of the year. It's not because it's in the U.S. where the story orginates that makes it so big, rather it's the worldwide impact and... Continue Reading
Margaret Thatcher: The "Iron Lady" - 25
She began removing the controls, subsidies, and regulations that kept business lazy.This is one of the reasons we have to be careful in how we approach our businesses. To keep one eye on the government as a backup plan for... Continue Reading
Dec21
Consumers Continue to Carry Economy: Spending Explodes in November
Consumers continue to shrug off mortgage problems, a slowing housing market and increasing gasoline prices, as they keep snapping up products, increasing spending by the largest amount in about 3 1/2 years in November, said the Commerce Department. Overall consumer... Continue Reading
Goldman Sachs CEO Lloyd Blankfein Rewarded with $67.9 Million Bonus
The extraordinary performance by Goldman Sachs' CEO Lloyd Blankfein has been rewarded with a huge $67.9 million bonus for 2007. In a regulatory filing, it revealed that along with $26.8 million in cash, he received $41.1 million in restricted stock... Continue Reading
ABC Supply Founder, CEO Ken Hendricks Dies after Accident
Ken Hendricks, who quietly went about building his business empire, died during surgery today, after falling from the roof on his property and incurring massive head injuries. Hendricks was 66.For Hendricks, his love was taking old, used buildings and revamping... Continue Reading
Merrill Lynch & Co. may get $5 Billion from Temasek Holdings Ltd
With the probability that things are going to get worse before they get better, along with the likelyhood there are billions more in write-downs facing them in the fourth quarter, Merrill Lynch (MER) is in negotitations with Temasek Holdings Pte.... Continue Reading
Dec20
The Wisdom Of Peter Drucker -35
"The Characteristics of information imply that the smallest, effective size [of communication] is the best."There are two important things Peter Drucker talked about here, that are extremely important to successful communication in a business. While the ability to get something... Continue Reading
Bear Stearns Co. Suffers First Loss in its History
For the first time in company history, Bear Stearns (BSC) suffered a loss, and a much bigger loss than expected.As with many financial institutions, they got clobbered by their entry into subprime mortgages. Bear Stearns is the fifth-largest investment bank... Continue Reading
Sam Zell Immediately Shakes Up Tribune Co. as New Chairman and CEO
With the acquisition of Tribune Co. completed today, Sam Zell took little time to shake things up at the company, by installing a number of new people in key positions.Understanding the immediate importance to get things moving quickly in the... Continue Reading
Dec19
Herb Kelleher: The Method Behind His Madness - 133
"Choose service to others over self-interest."There are times when making a decision to help a customer at company expense or time doesn't do anything to help the business. At those times, we must forget about the short-term cost of taking... Continue Reading
China Investment Corporation Acquires 9.9 Percent Stake in Morgan Stanley
The China Investment Corporation, or CIC, is a newly created sovereign wealth fund created to invest a portion of the large trade surplus enjoyed by the Chinese. A sovereign wealth fund is either partly or fully owned by a country,... Continue Reading
Environmental Protection Agency Protects us from California Politicians
The continual assault upon Americans by politicians in California was answered today when the attempt to impose California's will upon the rest of the nation was rejected by the Environmental Protection Agency. Using the unproven theory of global warming, the... Continue Reading
Wal-Mart Holiday Hero, Donates 3 Million Meals to Second Harvest Food Bank Network
In response to a devastating shortage of food for hungry Americans, Wal-Mart (WMT) stepped up to the plate and donated 3 million meals to food bank network Second Harvest.The contribution by Wal-Mart, who was the first corporation in American to... Continue Reading
Vladimir Putin: Time's Man of the Year
Just like the Nobel Peace Prize, the handing out of awards for people across the world has become has in most cases become a political event, and has diluted and undermined the prizes and their meaning. Think of the silly... Continue Reading
Dec18
Warren Buffett and Secrets of Management - 176
“Look at the business you run as if it were the only asset of your family, one that must be operated for the next 50 years and can never be sold."This is one of the few things Warren Buffett tells... Continue Reading
U.S. Housing Starts Drop to 16-year low
For the eighth month in a row, housing starts for single-family homes in the United States dropped. With the 5.4 percent drop in November, it brought starts to their lowest level in 16 years, averaging only 829,000 units annually. Numbers... Continue Reading
Federal Reserve Issues New Regulatory Rules for Mortgages
The rule proposals by the Federal Reserve to allegedly combat the mortgage problems in the industry, are probrobably largely irrelevant at this time. The market has already weeded out the problems and business survival kicked in for self-regulation already.Subprime mortgages... Continue Reading
Steve Jobs: The Captain of Cool - 36
Steve Jobs on the value of death - Part 8 "And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary."Almost everything Steve Jobs talks... Continue Reading
Dec17
Mary Kay Ash: She Never Wavered - 90
"Listen long enough and the person will generally come up with an adequate solution."This is truly a powerful tool to use as a manager, or really, in any circumstance and situation in life. If you want to become known as... Continue Reading
Dec16
The Jack Welch Management Mystique - 87
As product life cycles shorten and technology becomes easy to emulate, companies end up with few real competitive advantages.A lot of businesses have taken on an interesting quality over the last years, as in the pursuit of the idea of... Continue Reading
Jim Bunning: Alan Greenspan Major Part of the Housing Problem
In an excellent piece written in the online Wall Street Journal, Sen. Jim Bunning (R., Ky.) offers a good look at the role Alan Greenspan has played in the housing and mortgage problems in the U.S., that are now affecting... Continue Reading
Andy Grove: Only the Paranoid Survive - 42
Writing down his thoughts plays an important role in this process of teaching himself.  Andy Grove, which may surprise some, didn't know a thing about management when Intel (INTC) was started. He was the number three employee at the company... Continue Reading
Dec15
Oprah Winfrey: "We Are Each Responsible For Our Own Life" - 8
"Doing the best at this moment puts you in the best place for the next moment."It is extremely tempting when building the company or division you work in, to look ahead in such a way as to hurt your chances... Continue Reading
Ed Coleman Out as Gateway CEO
Barely a year after taking over the reins of Gateway, CEO Ed Coleman announced he'll be resigning. The announcement came only three months after he guided the company through the selling of itself to Acer (2353TW). In August Acer paid... Continue Reading
IBM Growth Surging in Emerging Markets
Last year at this time, International Business Machines Corp. (IBM) employed about 355,000 people globally. While this years' overall figures aren't out yet, figures for the emerging markets, especially India and China, have been let out, and they are pretty... Continue Reading
Continued Economic Uncertainty Could Tighten Spending by Consumers and Businesses
The move by the fed to only decrease the short-term lending rate by a quarter point, left uncertainty in the markets and investors, as it underscored the concern that inflation is a growing, major factor in the economy. With wholesale inflation reaching... Continue Reading
Dec14
Principal Shows Poor Leadership in Memo Telling Teachers To Dumb-Down Standards
A principle from a high school in East Harlem has come under fire for sending a memo to teachers that basically tells them they've failed their students if they aren't passing over 65 percent of their students. But here's how... Continue Reading
Dark Side of Global Warming Agenda Finally Revealing Itself
With thousands of scientists around the world saying the man-made global warming theory is a hoax, and far from provable, it makes one ask the question as to why proponents of it are so adamant in pursuing it, and falsely... Continue Reading
Margaret Thatcher: The "Iron Lady" - 24
"If you just set out to be liked, you would be prepared to compromise on anything at any time, and you would achieve nothing."The key to Thatcher's statement above, isn't simply to be a disagreeable character not liked by anybody,... Continue Reading
Know More Media Business Blogging Network Celebrates 2nd Anniversary
The growing importance of business information and news is known by everybody in the industry. To that end, the Know More Media business business blog network was created, and under whose banner I write. It has recently celebrated its second... Continue Reading
The Wisdom Of Peter Drucker -34
"The question of the right size for a given task or a given organization will become a central question."The context of what Drucker was talking about here, is when the economy changed from being a mechanical system to a biological... Continue Reading
Herb Kelleher: The Method Behind His Madness - 132
"Live within your budget. Look for things that you can do better."This is one of my favorite quotes from Kelleher. First because it directly relates to the upheavals we're going through in business at this time, and second, it gets... Continue Reading
Dec13
Mitchell Report in: All Major League Baseball Shares Responsibility!
Not sparing anyone his rod, former Senate majority leader George Mitchell let it be know that everyone involved with Major League Baseball shares responsibility for the results of the 20-month long investigation into performancing enhancing drugs."Everyone involved in baseball shares... Continue Reading
Dec12
Warren Buffett and Secrets of Management - 175
“We delegate almost to the point of abdication. Charlie and I mainly attend to capital allocation and the care and feeding of our key managers."The Charlie he's referring to is his right hand man, Charlie Munger. What is most important... Continue Reading
NFL Goes to Government in Attempt to get their way
The move by the National Football League to go to Texas lawmakers in an attempt to force a deal with the cable companies, was irresponsible and wreckless.At issue is the four-year-old NFL Network, which is available in 35 million homes... Continue Reading
Steve Jobs: The Captain of Cool - 35
Steve Jobs on the value of death - Part 7  "Don't let the noise of others' opinions drown out your own inner voice."Last post on Steve Jobs and the value of death, we talked about battling living with the results... Continue Reading
Will Dec. 13 be Major League Baseballs' Day of Infamy?
For 20 months, former Senate majority leader George Mitchell headed the investigation into steroid or other performance-enhancing drug use in Major League Baseball. That report is set to be released on December 13, at a news conference scheduled for 2... Continue Reading
Dec11
Steve Jobs: The Captain of Cool - 34
Steve Jobs on the value of death - Part 6 "Don't be trapped by dogma — which is living with the results of other people's thinking."In reading Steve Jobs thoughts on the reality and principle of death, it's interesting to... Continue Reading
Citigroup Names Vikram Pandit as New CEO
A month after the departure of former Citigroup CEO Charles Prince, the company named Vikram Pandit as their new chief executive officer. Acting CEO Win Bischoff, was named as nonexecutive chairman of the company also.Pandit came on board with Citigroup... Continue Reading
Fed Cuts Rates to 4.25 Percent
After the news that the job market remained stronger than expected, most weren't sure what type of interest rate cut the Federal Reserve would make: 25 basis points or 50 basis points. They decided to go with the 25 basis... Continue Reading
Dec10
Steve Jobs: The Captain of Cool - 33
Steve Jobs on the value of death - Part 5 "Your time is limited, so don't waste it living someone else's life." Continuing on with our theme on the value of death, something most people don't like to dwell on, hopefully... Continue Reading
Jeanne Assam Calmly does Her Job, Stops Colorado Church Shooting Rampage
Jeanne Assam, who was trained for and working security at New Life Church in Colorado Springs, Colorado, spotted the gunman, 24-year-old Matthew Murray inside the church building, and ducked down to hide. When he got closer to her, she stood... Continue Reading
Steve Jobs: The Captain of Cool - 32
Steve Jobs on the value of death - Part 4"Death is very likely the single best invention of Life. It is Life's change agent."What's interesting about the reality of death, and the concept as well, is in both instances people... Continue Reading
Dec 9
Steve Jobs: The Captain of Cool - 31
Steve Jobs on the value of death - Part 3"Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose."What can a person do when they know... Continue Reading
Christian Organizations Under Attack: Gunmen Kill at Least Three in Separate Shootings
In two separate locations in Colorado, Christian organizations were under attack, as gunmen opened fire and killed at least three people. After hearing of the shooting at Arvada, a Denver suburb, which killed two Youth With a Mission (YWAM) people;... Continue Reading
Steve Jobs: The Captain of Cool - 30
Steve Jobs on the value of death - Part 2Things just "fall away in the face of death, leaving only what is truly important."It's enlightening to hear Steve Jobs talk about death as a way to discover what is truly... Continue Reading
Steve Jobs: The Captain of Cool - 29
Steve Jobs on the value of death - Part 1The series of next posts about Jobs, we'll talk about his take on death, and how he surprisingly believes it's one of the most valuable tools there is to bring one... Continue Reading
Mary Kay Ash: She Never Wavered - 89
"There were many times when I failed, many times when I was disappointed. We didn't set the world on fire from the first day: disappointments, setbacks and work have created the Company as it is today."Whatever we as business leaders... Continue Reading
Dec 8
The Jack Welch Management Mystique - 86
"Welch sits on no outside corporate boards and devotes virtually all his energy to running GE."It can be said that sitting on boards could lead to making deals and connections which could lead to more business, it can also be... Continue Reading
Andy Grove: Only the Paranoid Survive - 41
On technology: "It rewards openness. Information can no longer be easily controlled nor ideas repressed nor societies kept closed. A networked world facilitates free minds, free markets and free trade."Along with what Grove said above, another time he added that... Continue Reading
Oprah Winfrey: "We Are Each Responsible For Our Own Life" - 7
"Living in the moment brings you a sense of reverence for all of life's blessings."Oprah's insight into the value of living in the moment for one's personal life is important, but in reference to business, it's just as important.When a... Continue Reading
Dec 7
Margaret Thatcher: The "Iron Lady" - 23
"The British spirit of enterprise, which had transformed half the world in Queen Victoria's day, seemed to have been put to sleep."The above words were from U.S. President Ronald Reagan commenting on the formidable task Margaret Thatcher and Britain faced... Continue Reading
NBC Rejection of Ads Thanking and Remembering US Troops: A Stupid Management Move
Does General Electric support NBC decision to reject ad to thank and remember US troops during the holiday season? We want an answer!The decision by NBC (GE), the faltering TV network, to reject the ads by Freedom Watch to thank US troops and... Continue Reading
Pearl Harbor and not Everyone Negotiates in Good Faith
Pearl Harbor Day and its memory causes me to reflect on how even the most prepared people can be caught off guard.The event that was Pearl Harbor, didn't come about because the armed forces of the U.S. weren't prepared, it... Continue Reading
Dec 6
E. Neville Isdell Resigning as CEO of Coca Cola, Muhter Kent Named Successor
Neville Isdell announced Thursday that he would be stepping down as head of Coca Cola (KO). Isdell was cajoled back to the company after struggles with keeping top executives, inner company struggles and weak advertising. Having for the most part... Continue Reading
James Murdoch Now in Number Three Position at News Corp.
The lone Rupert Murdoch family member left at the company, James Murdoch, is leaving his CEO post at British Sky Broadcasting Group Plc (BSkyB) in order to expand his role in the company by running the Asian and European responsibilities... Continue Reading
The Wisdom Of Peter Drucker -33
"The most important thing in communication is to hear what isn't being said."The reason why it's so important to hear what isn't being said, is a large number of people either aren't really clear communicators, or are fearful of potential... Continue Reading
Former UnitedHealth CEO William McGuire Forfeiting over $400 Million in Settlement
For the first time, what is called the "clawback" provision within the Sarbanes-Oxley corporate reform law, was activated in the case of former UnitedHealth (UNH) CEO William McGuire, which deals with executives making profits from sales of stock and receiving... Continue Reading
Dow Jones CEO Richard Zannino Stepping Down
Dow Jones (DJ) announced today that CEO Richard Zannino will be stepping down from the company when after News Corp. (NWS-A) takes over. He will stay long enough to help during the transitional period.News Corp. also said that very soon... Continue Reading
Dec 5
MGM Mirage Authorizes New Stock Repurchase
MGM Mirage (MGM) announced on Wednesday that the board has approved another stock repurchase for the casino resort giant, this time for up to 20 million shares. As of its 87.86 close on Wednesday, that would equal about $1.74 billion.... Continue Reading
Omaha Mall Shooting Ends in Nine Deaths: Shooter Identified
A mall in Omaha, Nebraska was the scene of a tragedy today, as a lone gunman opened fire on customers, killing eight and wounding five others before taking his own life. The gunman stood on a bal