Buffett, Gates and Blankfein

I have read two very good articles this week and wanted to share. They are about investing and business so beware. The first was a town hall meeting with Bill Gates and Warren Buffett at Columbia University. The second was an article by John Arlidge about Goldman Sachs.

Here are some memorable quotes from the Town Hall:

"projecting out into the years ahead ... are we making the right investments, are we gaining on the competition, are we making it a little bit harder for people to replace what we're doing?"
- Gates

"the best systems are ones where you have good short-term metrics, great accounting, looking at profits, looking at risk and willing to do things long-term"
- Gates

"run this business like it's the only business that your family can own for the next 100 years. You can't sell it. ... Measure it by whether the moat around that business, what gives it competitive advantage over time has widened or narrowed. ... If the reason for doing something is everybody else if doing it, it's not good enough. If you have to use that as a reason, forget it"
- Buffett

Full transcript http://www.cnbc.com/id/33901003/

Insights from the Goldman Article
Inspect
"Staff rigorously price ... the bank's assets every day, down to the last cent, and forensically examine daily profit and loss. This helps the bank to see market trends clearly and early and, it believes, to manage risk better than most other banks. 'We think we make better decisions' says Beshel"

Work harder than everyone else
"you have to work harder than the average bear ... 'it's a 24/7 culture, When you're needed, you're here. and if you're needed and you're not answering your phone, you won't be needed very long"

Learn all you can
"You are programmed at an early stage to go out more than the other guy, to see more people - clients, hedge funds or private equity guys ... brain pick. You ask what's their best trade. How do they see the market? You offer something in return, but you always come back with something."

Work as a team
"then you feed it to colleagues who go to work trying to use the information to make money. It's a team effort" "we're in this together"

Develop systems that drive your values
"You can have a great career in banking as an individual, but it won't be here. The system weeds out those who can't play nicely with others"

Recruit the best talent you can find
"Most applicants are interviewed at least 20 times before they are made an offer and some more than 30 times."

Pay the best talent very very well
"Sachs isn't nicknamed 'Goldmine Sachs' for nothing. Some 953 employees got bonuses of at least $1 million in 2008"

Article http://www.timesonline.co.uk/tol/news/world/us_and_americas/article6907681.ece?token=null&offset=0&page=1

To Think

I heard or read a great statement the other day, "I want to think things I have never thought before."