Warrenn Buffett and Rose Blumkin

admin — Fri, 31 Oct 2008 20:40:16 +0000

Warren Buffett is convinced that a good management team is key in a good business. He does not like firing people and getting new managers on board.

Rose Blumkin and the Nebraska Furniture Mart is one of the best success stories with Warrenn Buffet.

Rose Blumkin was born in Russia in 1893 and started to work early in her mother’s store.

She had one motto to succeed : « Sell cheap and tell the truth »

Warrenn Buffet, came to visit her store several times and convinced her to buy her out after several attempts. It has been a long process for him to succeed. He finally bought the store for 60 million dollars. She named the price and Warrenn Buffett accepter right away.

In 1984, in his Letter to Shareholders, Warren Buffett explained some of his own investment principles:

‘I have been asked by a number of people what secrets the Blumkins bring to their business. These are not very esoteric. All members of the family:

1. Apply themselves with an enthusiasm that would make Ben Franklin and Horatio Alger look like dropouts;

2. Define with extraordinary realism their area of special competence and act decisively on all matters within it;

3. Ignore even the most enticing propositions falling outside of that area of special competence; and

4. Unfailingly behave in a high grade manner with everyone they deal with. (Mrs B boils it down to “sell cheap and tell the truth”.

Rose Blumkin died in 1998, aged 104. She became a legend for many general managers and entrepreneurs.

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Warrenn Buffett and Rose Blumkin

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