A few years ago, my students and I visited with Warren Buffett in Omaha. One of the students asked him how he chooses managers. The co-founder and chairman of Berkshire Hathaway said that it was easy: He said I take them for lunch and, if I realize they are there for the money, I do not hire them.
Read interviews from the CEOs: Do they make projections that are off actual performance? Here’s an example: The ex-CEO of General Electric, Jeff Immelt, gave an interview three weeks before the company announced earnings and made a forecast that was way off the actual numbers. While GE was too complex, and difficult to manage, Mr. Immelt still had a credibility problem.
Running a commodity business will lead the company into bankruptcy if the CEO does not understand the business or will save the company if they do. A case in point is Denis Durcotte, who had deep knowledge of the business, and whose hiring saved a struggling Algoma Steel from bankruptcy. On the other hand, running a business with barriers to entry, a manager poorly qualified to run the business will diminish the franchise but will not inflict mortal damage, as Mr. Buffett likes to say.
इंडिया ताज़ा खबर, इंडिया मुख्य बातें
Similar News:आप इससे मिलती-जुलती खबरें भी पढ़ सकते हैं जिन्हें हमने अन्य समाचार स्रोतों से एकत्र किया है।
स्रोत: YahooFinanceCA - 🏆 47. / 63 और पढो »