1. Speak out responsibly—welcome dissent, but own your words
Healthy debate matters: Calling out problems (long or short) keeps markets honest—just be ready to stand behind every claim you make.
Beware unethical tactics: Spreading falsehoods—on either side—can wreck reputations and should be (and sometimes is) illegal.
2. Autonomy trumps forced synergies
Subsidiary freedom: Let your operating teams run their own businesses—micromanaging cross-selling or vendor “mandates” often backfires.
Organic cooperation wins: When two units choose to work together, that bond is stronger than any top-down edict.
3. Hire people who act like owners
Owner mindset is rare: Look for managers who think “I own this business”—they’ll work harder and care more than any rear-view metric.
Minimize formal contracts: Too many caveats and clawbacks breed mistrust; align incentives simply, then step back.
4. Retain earnings only when they earn more than 1× their cost—but measure properly
Presence of value > price: Only plow back cash if each $1 retained is likely to create > $1 in present-value terms.
Beware simple five-year price tests: Market gyrations can make perfectly good investments “fail” short-term formulae; use long-term PV calculations.
5. Don’t try to solve society’s ills by hiring—it misallocates capital
Social safety nets belong to government: Private firms shouldn’t create make-work jobs—they’ll soon collapse under inefficiency.
Hire only when work exists: Bringing people on “just to employ” without a productive role hurts both them and the business.
6. Stick to what you can control—own the whole cake when you can
Full ownership beats minority stakes: You’ll work harder and move faster when you can make all the calls—hence passing on markets (China, India) where you can’t own 100 %.
Regulatory limits are real costs: If you can’t tilt the playing-field rules yourself, don’t expect to build the same moat.
7. Clear, audience-focused communication builds lasting trust
Write for “two smart outsiders”: Buffet’s “Dear Doris and Bertie” approach ensures even non-pros read, understand, and stay loyal.
Trim the noise: If a report needs 100 pages of footnotes, it’s probably hiding more than it reveals—brevity and clarity win.
8. Pragmatism is the true “philosophy” of success
Repeat what works: There is no single creed—just observe results, keep the good habits, jettison the rest.
Temperament matters: Logical consistency and self-discipline beat clever theory every time.
9. Be fearful when others are greedy—and vice versa
Embrace volatility: If you panic when markets swoon, you’ll never buy low (or sell high).
Cultivate independent courage: Rely on your own circle of competence, not the headlines, to guide big moves.
10. Shared hardship can beat mass layoffs for morale (and returns)
Some businesses cut hours before people: When revenue dips, sharing the burden keeps your team intact and ready for the rebound.
Loyalty pays dividends: Employees who stick through tough times often drive the strongest recoveries.
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