Protect your Values
After learning and thoroughly testing value investing; ‘Warren Buffet’ bought ‘Berkshire Hathaway’ shares for the first time in 1962. Then Berkshire Hathaway was a big textile business and was going through financial challenges. Company was on the spree of selling textile mills one after the other and was investing the proceeds to buyback Berkshire Hathaway shares from the market and existing share holders.
Warren Buffet started buying more shares of Berkshire Hathaway anticipating management is planning to close down the company and for that they will keep on selling existing textile mills and keep on buying back shares from the market. This will obviously increase the share price in near future.
Warren Buffet kept on buying shares till 1964.
When Berkshire sold one more textile mill they asked Warren Buffets asking price for shares he was holding. Warren Buffets demand of 11.50$ per share was accepted by Berkshire management and deal was done.
But when Warren Buffet received letter from Berkshire management; share price was mentioned $11.375 as against the agreed price of $11.5. Warren Buffet did not like this attitude of Berkshire management, he felt cheated. He rejected the deal and started buying more shares of Berkshire Hathaway from market. He kept on buying till the time he got full control of Berkshire Hathaway. The moment he got full control of company; his first decision was to fire the cheater management of Berkshire Hathaway.
Learning from the story
1. Know your values and do not compromise on your values.
2. If you compromise on your values; you will never be happy.
Questions to ask ourselves
1. What Values do we have as an Organisation?
2. How do we make sure all our stakeholders abide by and follow the values?
If you really want to build a value based culture in your organization consider this as a personal invitation to our seminar Put your Business On Autopilot
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