"...keeping you great"
HEADLINES:
| "Leadership and power are very different ideas. Leadership only exists when people have the freedom NOT to follow." | |
| Jim Collins, Success Magazine | |
Warren Buffett's Annual Letter -- published last week, here's a link to this must read annual musing of the wealthiest guy on the planet -- my highlights follow.
"What we don't do" -- after looking at the impressive returns Berkshire Hathaway continues to chalk up -- over 20% compounded for the last 45 years -- turn to page 4 (page 3 on the pdf) of the letter and read through the next few paragraphs based on Charlie Munger's strongest ambition "All I want to know is where I'm going to die, so I'll never go there." Warren outlines how they apply this to their investment decisions.
Warren's $50 million mistake -- then jump to page 8 and read about how Warren, though many claim is old and wise, noted that he's just old! He had a brilliant idea about offering a credit card to GEICO customers, over the objections of GEICO management, and ended up losing $50 million on the idea.
Warren's Use of Company Stock for Acquisitions -- for lessons in acquisitions, skip to page 16 for a lesson on using company stock for acquisitions in the section entitled "An Inconvenient Truth." In essence, it doesn't make sense for them to use stock, which is why they paid cash for Burlington Northern Railroad, since they expect their stock to increase in price and it doesn't reflect true market value. He finishes the section on page 17 with a short story (I love the way Warren tells stories).
Warren's PS -- at age 89, Warren is thankful for the life he's led -- read his final paragraph and then his little PS following his signature! He's always selling, which you have to admire -- and every successful entrepreneur I've ever met is always selling -- if not, then they don't really believe in their product/service.
Apple #1 "World's Most Admired Company" -- Fortune's list just came out and Apple, for a third year in a row, is #1. Google, Berkshire Hathaway (Buffett), Johnson & Johnson, and Amazon round out the top five. Here's a link to the top 50.
Re-Design of Fortune -- today marks the redesign of Fortune magazine, still my favorite business magazine (long before they became our partners) after all these years because of their long-style in-depth articles that give you the "how to" behind the business headlines. Here's a quick overview of the new magazine -- and I'm excited to be one of their handful of columnists, featured in their new Venture section -- something I've dreamed of doing for 30 years. I'll point to my first column when it publishes in the March 22 edition.
Jim Collins on Cover of Success -- and I continue to admire dear friend Stuart Johnson's success with Success magazine, one of my favorite motivational magazine -- I just need some regular "juice" to keep positive and focused. The latest issue features Jim Collins, author of Good to Great and How the Mighty Fall. Check out the short sub-section in the article entitled "Making it Through the Storm." The latest issue also features Pat Lencioni, author of The Five Dysfunctions of a Team. And then sign-up for the magazine -- just because of the title, your children and staff should see it sitting around the house and in your office.