Brad Feld maintains a great blog, and yesterday he linked to this terrific post called Notes From Buffett Meeting, dated Feb. 15. The notes are from a Q&A session that Buffett gave to students at the Emory’s Goizueta Business School and McCombs School of Business at the University of Texas at Austin. Buffett is known for his willingness to reach out and mentor young people — including guy he’s pictured with above!
As always, Buffett’s advice is directed to investing, but his wisdom is so universal it doesn’t take much of a leap to see how it applies to entrepreneurs too. Right off the bat, for example, consider the following Buffett analogy, employed to express when it makes sense to diversify, and when it doesn’t …
If it’s your game, diversification doesn’t make sense. It’s crazy to put money into your 20th choice rather than your 1st choice. “Lebron James” analogy. If you have Lebron James on your team, don’t take him out of the game just to make room for someone else. If you have a harem of 40 women, you never really get to know any of them well.
Consider this when you’re considering a new hire, a new partner, a new advisor or investor. Focus founders!