For about the past 50 years, Warren Buffett has been buying companies, such as GEICO, Duracell, and BNSF Railroad, and buying shares in major U.S companies, such as American Express ( owning 17.6% of shares), Coca Cola ( 9.4%), and Apple ( 5.2%). Warren’s company is called Berkshire Hathaway, and it is publicly traded on the NYSE. Over that 50 year period, the average annual growth in the book value of Berkshire Hathaway has been 19% versus 9.7% for the S&P 500. That is why in the financial world he is called the Oracle of Omaha.
Bob's Gutsy Leadership Blog
Bob regularly writes blog posts and articles with his areas of focus being leadership, organizational effectiveness. Below you will find the titles and hot-links of his most recent efforts:
2019 saw some very big names in the world of investing and finance end up with quite red faces as they got seduced to investing in weak business models with even weaker managements. Here are the two prime examples that have dominated the business news in 2019! Uber – Numerous financial giants invested in this […]
Here is a link to an interview I did last week on ”Mornings with Maria” on the Fox Business network. It covers a variety of topics such as antitrust in the tech industry, artificial intelligence, IPO’s in the future, and the learnings from Uber and WeWork. You can watch the interview by clicking here.
IBM, the once-storied technology company, has become a laggard when the world is seeing rapid technological advancements. Since 2010, the stock price has increase +4%, while the S&P 500 has increased +188%. Even more embarrassing, the other industry veterans Apple, Microsoft, Intel and Oracle grew +792%, +414%, +177%, and +128% respectively.
Recently a technology analyst who has been covering the industry for a couple of decades commented: “On my last couple of trips to Silicon Valley, not one person I spoke to had anything good to say about Facebook, a company that minted hundreds of Bay Area millionaires when it went public in 2012.
Earlier today, I was interviewed by Maria Bartiromo and the co-hosts of the Mornings with Maria show on Fox Business News. The discussion centered around the China trade/tariff/intellectual property negotiations and how they could impact the technology sector. You can watch the interview by clicking here.
The article on Amazon’s master plan for success that appeared recently in the Atlantic magazine is a very interesting read. I was most impressed by the clear description of the core principles instilled by Jeff Bezos right in the beginning on how the company would operate. It outlines how the organization protects and effectively executes these principles on an ongoing basis.
A couple of years ago a management research firm did a massive survey of almost 100,000 people employed worldwide and surprisingly, almost a third cited “burnout” as a problem they were experiencing. In the study, “burnout” was defined as feeling ineffective and overwhelmed with work.
Over the years, Boeing CEO’s have constantly stated publicly that Boeing has no higher priority than the safety of the flying public. As the details of the development of the company’s new 737 MAX aircraft become public, we are now seeing that internally, Boeing has had a very different #1 priority.
From a tech perspective, the big news recently is the postponement of the WeWork IPO. Investors have become unnerved by deepening losses at the company, which last year bled $1.61 billion in red ink; nearly equal to its revenue of $1.82billion! While the company had been valued at $47 billion, based on the last cash infusion by Softbank, in recent days its underwriters settled on something closer to $15 billion. Not surprisingly, this led to the CEO/Co-Founder resigning but staying on as non-executive chairman.