Posted by Kirsten Gibbs Last updated 11th August 2020 reading time
“I try to invest in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.” Warren Buffet.
There are 2 ways to make a business idiot-proof.
One is to build a business that generates and shares real value, making and keeping promises to customers and continually improving how it does that. All protected from a potential ‘idiot’ at the top, because there is no top. The people who do the business run the business, the way an orchestra plays a symphony, without needing a composer to be present.
The other way is to build and protect a racket, a monopoly (Buffett calls this ‘putting a moat around the business‘), that can’t help but make extraordinary profits, no matter who’s in charge.
The first way takes investment, but for most of us, it’s the affordable option (as well as being the right one).