Friday, May 23, 2014

A piece of advice from Warren Buffet

This article summarizes Warren Buffet's suggestions for business owners seeking for rapid growth.

“Keep things simple and don’t swing for the fences.”

What do you think?

5 comments:

  1. maximizing opportunity and minimizing risk is part and parcel of sustainable growth since risk is inevitable. using the examples of ryanair and jetblue puts the argument about sustainable growth in a business into real-world perspective.

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  2. It's hard to argue with an investor as successful as Warren Buffet; however, I have heard many pioneers in business chide companies as being "too safe". Being safe can keep a company profitable, but it could also create complacency and therefore an inability to adapt to their market and competition.

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  3. I think it all depends on the individual and their own disposition. Warren Buffet is an investor, and investors should maintain disciplined focus on long term gains--such strategies tend to be risk neutral to risk averse. However, there are numerous traders, venture capitalists, entrepreneurs, etc. All of these people benefit from taking on risks that a long term focused investor would be averse to, and they tend to maintain shorter event horizons in their strategies.

    However, the real problem is when people pick the strong strategy for the task at hand (e.g. individuals investing for their 401k try to beat the market with frequent trades and allocations).

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  4. "Sell a great product, then teach customers how to use it, or fix it when it needs a tune-up. Make their lives easier and they’ll keep coming back to you for more advice — and more purchases."
    I found this one interesting and wonder if it applies to pharmaceutical industry. Can people buy drug, get healed and come back for other kinds of medicine?

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  5. If people want to learn what the proper investing orientation people should have they should read "The Intelligent Investor" by Ben Graham. It's a really old book but the principles are still as relevant as the day it was published.

    Ben Graham is a legendary investor who taught Warren Buffet how to invest. Since he experienced losing all of his money during the Great Depression, he placed a lot of emphasis on the preservation of capital.

    Here is a video about him:

    https://www.youtube.com/watch?v=m1WLoNEqkV4

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