Buffet’s Advice

By Kevin on March 6, 2009 in Uncategorized

Warren Buffet wrote in his annual shareholder letter:

In good years and bad, Charlie and I simply focus on four goals:(1) Maintaining Berkshire’s Gibraltar-like financial position, which features huge amounts of excess liquidity, near-term obligations that are modest, and dozens of sources of earnings and cash;(2) Widening the “moats” around our operating businesses that give them durable competitive advantages;(3) Acquiring and developing new and varied streams of earnings;(4) Expanding and nurturing the cadre of outstanding operating managers who, over the years, have delivered Berkshire exceptional results.

I would modify and simplify as:

    1. maximize cash flow
    2. create barriers to entry and to exit
    3. grow sales
    4. acquire great talent


      Kevin Kruse is a NY Times bestselling author and keynote speaker. Get more success and tips from his newsletter at kevinkruse.com and check out keynote video clips. His new book, Employee Engagement 2.0, teaches managers how to turn apathetic groups into emotionally committed teams.

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