Partnership: We can’t operate alone. Transactions involve counterparties. Ultimately, business is about establishing and managing relationships with others. Without mutual benefit, trade falters and conducting business becomes difficult. When starting a business, keep a partnership in mind. The key to a partnership is “how to share,” not “how much to earn.” If the distribution isn’t rational, distortions will occur within the organization, which can harm the bottom line. Failing to distribute fairly or according to the situation increases the risk of business failure. Breaking up with a partner might seem better sometimes, but the core conflict remains; only it shifts from internal to external. To succeed in business, focus on distributing profits effectively rather than solely increasing them. Learning to distribute well is essential. - Joseph’s “just my thoughts”
At Berkshire Hathaway ’s 2013 shareholders’ meeting, Warren Buffett said, “I’ve owned 400 to 500 companies’ stocks in my lifetime, but only about 10 of them made the most money.” His lifelong friend and investment partner, Charlie Munger , added, “With the exception of some of Berkshire Hathaway’s best investment practices , long-term performance is near-average.” Many people know Warren Buffett’s return on investment better than his mistakes or failures. It’s because of those 10 companies that he succeeded in investing. If there is a positive, there must be a negative. It’s better to prepare a realistic alternative in case you fail than to try to avoid failing. Humans are probabilistic beings . - Joseph’s “just my thoughts”