We encourage our people to deal with problems without flinching. At its best, the method means that people deal with each other very bluntly.
An Outsider’s Intellectual Objectivity
If existing management want to keep their jobs when the basics of the business are undergoing profound change, they must adopt an outsider’s intellectual objectivity. They must do what they need to do to get through the strategic inflection point unfettered by any emotional attachment to the past.
Memory
Memory is what is left when something happens and does not completely unhappen.
Every Exit Is An Entry
Herds
Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, one by one.
Management Is Battling Entropy
Management is always an exercise in battling entropy. Order tends to disorder and the application of energy is required to restore order. It’s an immutable law of the universe and it’s a law of management. In tough times, the disorder comes at you a whole lot faster and requires a lot more energy to manage.
Making High Quality Active Management Decisions
The most important distinction in the investment world does not separate individuals and institutions; the most important distinction divides those investors that have the ability to make high-quality active management decisions from those investors without active management expertise. Few institutions and even fewer individuals exhibit the ability and commit the resources to produce risk-adjusted excess returns.
