Page 151 - (DK) The Business Book

MAKING MONEY WORK 149
14
9
“netbooks.” In 2009, global netbook
sales rose by 72 percent. The herd
instinct of businesses such as Dell
was to produce their own netbook.
At Apple, by contrast, boss Steve
We find that whole Jobs announced that “the problem
communities suddenly with netbooks is that they’re not
fix their minds upon better than anything.” He worked
one object, and go mad to develop a superior alternative to
in its pursuit. netbooks—the iPad. By mid 2013
Charles MacKay the iPad had sold more than 145
million units and the original
makers of netbooks (Taiwan’s Asus)
had halted production completely. Warren Buffett
Those who ignore the herd can
apply cool logic to their situation Generally considered the
most successful investor of the
and think ahead to possible future
20th century, Warren Edward
its share of smartphone sales scenarios. The herd tends to think
Buffett was born on August
collapsed to around 3 percent in the that tomorrow will mean more and
30 in 1930 in Omaha, NE. He
first quarter of 2013. Throughout this more of today. Those who ignore
demonstrated an early ability
period, Nokia was desperately trying the herd can identify fundamentals
with mathematics and was
to catch up with Apple’s iPhone— that persist over time, while looking able to add large columns
but doing no more than throwing toward what might be different of numbers in his head. His
new products at the problem, instead tomorrow. As US entrepreneur Sam father was a stockbroker
of taking a deep strategic breath Walton advised, it often makes and congressman.
and deciding what innovations sense to “swim upstream.” ■ Buffett began investing
might earn it a stake of the market. at the age of 11. He started
The contrast between Nokia’s several small businesses
The success of the iPad reflected
behavior and that of Apple’s could while still a teenager, before
Apple’s resolve to develop a superior going to the universities of
not be greater. In 2008 and 2009 alternative to the “netbook.” Companies
the big trend in mobile computing like Apple and Samsung need to be Pennsylvania, Nebraska, and
was away from laptops and toward ahead of the herd, not behind it. Columbia to study business. In
1956 he formed the company
Buffett Partnership, where his
investment successes led to
his nickname, “the Oracle
of Omaha.” In 2006 he
announced that he would be
giving his entire fortune to
charity. In 2012 his net worth
was estimated at $44 billion.

Key works
2001 The Essays of Warren
Buffett: Lessons for Corporate
America (with Lawrence A
Cunningham)
2013 The Essays of Warren
Buffett: Lessons for Corporate
America, Third Edition (with
Lawrence A Cunningham)