During this time when South African business is under siege from lawless and increasingly entitled trade unions, we might all learn from one of Berkshire Hathaway chairman Warren Buffett’s favourite people, the inimitable Mrs Rose Blumkin. In the 1983 annual report, Buffett explains how, at 23, Rose talked her way past a border guard to leave Russia for America. Mrs B had no formal education and knew no English. She learnt the language from her elder daughter who taught her, every evening, the words she learnt in school during the day.
After many years of selling used clothing, Mrs B had saved $500 which she used to realise her dream of opening a furniture store. When her resources ran out, says Buffett, “she sold the furniture and appliances from her home” to pay creditors as promised. Her competitors used fair means and foul, says Buffett, and after pressurising manufacturers to stop supplying her, hauled her into court charging her with violating Fair Trade laws. But “she not only won all the cases….at the end of one case she sold the judge $1400 worth of carpet.”
Mrs B was 89 when, in 1982, Buffett bought control of her Nebraska Furniture Mart, the biggest furniture and appliance store in the world. She was on the floor until retiring at 103, and died the following year. Buffett says “One question I ask myself when appraising a business is how I would like to compete with it. I’d rather wrestle grizzlies than compete with Mrs B and her progeny.” Wonderful thing competition. As is an economic system where Mrs B lookalikes are encouraged. One where the spirit of entrepreneurship is celebrated. Not South Africa right now.
Yesterday’s top stories:
Pistorius: If guilty, can he appeal? Would he win it?
Global executive Ann Nurock: Why I left North America for my SA start-up
Matthew Lester: Trusts and estate duty – the big issues
How a Bishop and a lawyer overcame ANC politicking to end platinum strike
Licence to loot: Democracy, leadership and poor service delivery. Brilliant insights.
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