Great Business Partnerships Quotes

Let me make two remarks. First I concentrate on the task ahead for 2016. I’m quite busy with that—thank you very much. And I’m looking with great interest in the American election campaign.’ For the second time during their press conference, the clicking sounds of the cameras was deafening.

In a nutshell, I was looking for meaningful work and meaningful relationships. I quickly learned that the best way to do that was to have great partnerships with great people. To me, great partnerships come from sharing common values and interests, having similar approaches to pursuing them, and being reasonable with, and having consideration for, each other. At the same time, partners must be willing to hold each other to high standards and work through their disagreements. The main test of a great partnership is not whether the partners ever disagree—people in all healthy relationships disagree—but whether they can bring their disagreements to the surface and get through them well. Having clear processes for resolving disagreements efficiently and clearly is essential for business partnerships, marriages, and all other forms of partnership

As World War II was ending, the great engineer and public official Vannevar Bush argued that America’s innovation engine would require a three-way partnership of government, business, and academia. He was uniquely qualified to envision that triangle, because he had a foot in all three camps. He had been dean of engineering at MIT, a founder of Raytheon, and the chief government science administrator overseeing, among other projects, the building of the atom bomb.4 Bush’s recommendation was that government should not build big research labs of its own, as it had done with the atomic bomb project, but instead should fund research at universities and corporate labs. This government-business-university partnership produced the great innovations that propelled the U.S. economy in the postwar period, including transistors, microchips, computers, graphical user interfaces, GPS, lasers, the internet, and search engines.

It all began in 1919 when ex-Marxist Benito Mussolini wrote the Fascist Party platform, calling for central planning through a “partnership” of government, business, and labor. By 1925 he was in total power. Not all of Mussolini’s admirers were in Italy. The cover story of the New York Times Magazine for October 24, 1926, gushed: The most approachable as well as the most interesting statesman in Europe. He is a voracious learner who never makes the same mistake twice. . . . The whole country is keyed up by his energy. . . . The whole economic structure of the nation has been charted out in a graph that shows it as a huge corporation with the Government as the directorate. He explains it clearly and patiently, reminding you that he started his career as a teacher. An earlier New York Times editorial (October 31, 1922) had explained: In Italy as everywhere the great complaint against democracy today is its inefficiency. . . . Neither the failures nor the successes of (Russia’s) Bolshevist Government offer much of an example to the Western world. Dr. Mussolini’s experiment will perhaps tell us something more about the possibilities of oligarchic administration.

Love, genuine passionate love, was his for the first time. This he had never experienced at Judge Miller’s down in the sun-kissed Santa Clara Valley. With the Judge’s sons, hunting and tramping, it had been a working partnership; with the Judge’s grandsons, a sort of pompous guardianship; and with the Judge himself, a stately and dignified friendship. But love that was feverish and burning, that was adoration, that was madness, it had taken John Thornton to arouse. This man had saved his life, which was something; but, further, he was the ideal master. Other men saw to the welfare of their dogs from a sense of duty and business expediency; he saw to the welfare of his as if they were his own children, because he could not help it. And he saw further. He never forgot a kindly greeting or a cheering word, and to sit down for a long talk with them (“gas” he called it) was as much his delight as theirs. He had a way of taking Buck’s head roughly between his hands, and resting his own head upon Buck’s, of shaking him back and forth, the while calling him ill names that to Buck were love names. Buck knew no greater joy than that rough embrace and the sound of murmured oaths, and at each jerk back and forth it seemed that his heart would be shaken out of his body so great was its ecstasy. And when, released, he sprang to his feet, his mouth laughing, his eyes eloquent, his throat vibrant with unuttered sound, and in that fashion remained without movement, John Thornton would reverently exclaim, “God! you can all but speak!

SCANDALS AND MISMANAGEMENT If Secretary Clinton’s political career had ended with her defeat for the Democratic presidential nomination in 2008, her skills as a manager would have been judged by her disorganized and drama-filled campaign for the presidency and her disastrous Health Care Task Force as First Lady. President Obama, who defeated her calamitously run campaign, should have been wary of nominating Clinton to a post that was responsible for tens of thousands of federal employees throughout the world. While her tenure in Foggy Bottom didn’t have the highly publicized backstabbing element that tarnished her presidential campaign, Secretary Clinton’s deficiencies as a manager were no less evident. There was one department within State that Secretary Clinton oversaw with great care: the Global Partnerships Initiative (GPI), which was run by long-time Clinton family aide Kris Balderston. Balderston was known in political circles for creating a “hit list” that ranked members of Congress based on loyalty to the Clintons during the 2008 presidential primaries.[434] Balderston was brought to Foggy Bottom to “keep the Clinton political network humming at State.”[435] He focused his efforts on connecting CEOs and business interests—all potential Clinton 2016 donors—to State Department public/private partnerships. Balderston worked alongside Clinton’s long-time aide Huma Abedin, who was given a “special government employee” waiver, allowing her to work both as Secretary Clinton’s deputy chief of staff, and for other private sector clients. With the arrangement, Abedin would serve as a consultant to the top Clinton allied firm, Teneo, in a role in which, as the New York Times reported, “the lines were blurred between Ms. Abedin’s work in the high echelons of one of the government’s most sensitive executive departments and her role as a Clinton family insider.”[436] Secretary Clinton and her allies have placed great emphasis on the secretary of state’s historic role in promoting American business interests overseas, dubbing the effort “economic statecraft.”[437] The efforts of the GPI, Abedin, and Balderston ensured that Secretary Clinton’s “economic statecraft” agenda would be rife with the potential for conflicts of interest reminiscent of the favor-trading scandals that emanated from her husband’s White House. While the political office and donor maintenance program was managed with extreme meticulousness, Secretary Clinton ignored her role as manager of the rest of the sprawling government agency.[438] When it came to these more mundane tasks, Secretary Clinton was not on top of what was really going on in the department she ran. While Secretary Clinton was preoccupied with being filmed and photographed all around the world, the State Department was plagued by chronic management problems and scandals, from visa programs to security contractors. And when Secretary Clinton did weigh in on management issues, it was almost always after a raft of bad press forced her to, and not from any proactive steps she took. In fact, she and her department’s first reaction in certain instances was to silence critics or intimidate whistleblowers, rather than get to the bottom of what was actually going on. The events that unfolded in Benghazi were the worst example of Secretary Clinton neglecting her managerial responsibilities. This pattern of behavior, which led to the tragedy, was characteristic of her management style throughout her four years at Foggy Bottom. “Economic Statecraft” A big part of Secretary Clinton’s record-breaking travel—112 countries visited—was her work as a salesperson for select U.S. business interests.[439] Today, her supporters would have us believe her “economic statecraft” agenda was a major accomplishment.[440] Yet, as always seems to be the case with the Clintons, there was one family that benefited more than any other from all this economic statecraft—the Clinton family.

Bill Gates told me after Steve’s death. “You know, if you were going to do hardware and software together, and you’re going to do a few super, super nice designs, and you’re going to do it end-to-end where partnerships aren’t the key thing, where you control that experience totally. He managed a great organization that was purpose-fit to that.” We had been chatting about why so many books had been written promising to reveal how to do business “the Apple way,” or “the Steve Jobs way.” Bill was describing why Steve is a unique managerial case, someone whose model has limited applications. “Maybe you should call your book Don’t Try This at Home,” he said, only half joking. “So many of the people who want to be like Steve have the asshole side down. What they’re missing is the genius part.” One

To me, great partnerships come from sharing common values and interests, having similar approaches to pursuing them, and being reasonable, and having consideration for each other. At the same time, partners must be willing to hold each other to high standards, and work through their disagreements. The main test of a great partnership is not whether the partners ever disagree, people in all healthy relationships disagree, it’s whether they can bring their disagreements to the surface and get through them well. Having clear processes for resolving disagreements efficiently and clearly is essential for business partnerships, marriages, and all forms of partnership.

One assumption that is already being shattered is the idea that only routine, semi-skilled jobs like taxi driving, food delivery, or household chores are susceptible. Even traditional professions like medicine and law are proving to be susceptible to platform models. We’ve already mentioned Medicast, which applies an Uber-like model to finding a doctor. Several platform companies are providing online venues where legal services are available with comparable ease, speed, and convenience. Axiom Law has built a $200 million platform business by using a combination of data-mining software and freelance law talent to provide legal guidance and services to business clients; InCloudCounsel claims it can process basic legal documents such as licensing forms and nondisclosure agreements at a savings of up to 80 percent compared with a traditional law firm.11 In the decades to come, it seems likely that the platform model will be applied—or at least tested—in virtually every market for labor and professional services. How will this trend impact the service industries—not to mention the working lives of hundreds of millions of people? One likely result will be an even greater stratification of wealth, power, and prestige among service providers. Routine and standardized tasks will move to online platforms, where an army of relatively low-paid, self-employed professionals will be available to handle them. Meanwhile, the world’s great law firms, medical centers, consulting partnerships, and accounting practices will not vanish, but their relative size and importance will shrink as much of the work they used to do migrates to platforms that can provide comparable services at a fraction of the cost and with far greater convenience. A surviving handful of world-class experts will increasingly focus on a tiny subset of the most highly specialized and challenging assignments, which they can tackle from anywhere in the world using online tools. Thus, at the very highest level of professional expertise, winner-take-all markets are likely to emerge, with (say) two dozen internationally renowned attorneys competing for the splashiest and most lucrative cases anywhere on the globe.

Stan Druckenmiller, reflecting on his unbelievable success as an investor, said that the only way to make superior returns is to concentrate heavily. He thinks “diversification and all the stuff they’re teaching at business school today is probably the most misguided concept everywhere. And if you look at great investors that are as different as Warren Buffett, Carl Icahn, Ken Langone, they tend to be very, very concentrated bets. They see something, they bet it, and they bet the ranch on it… . [T]he mistake I’d say 98 percent of the money managers and individuals make is they feel like they got to be playing in a bunch of stuff.”4

I still sometimes get comments from partners like: “Say, Berkshire is up four points—that’s great!” or “What’s happening to us, Berkshire was down three last week?” Market price is irrelevant to us in the valuation of our controlling interests. We valued B-H at 25 at yearend 1967 when the market was about 20 and 31 at yearend 1968 when the market was about 37. We would have done the same thing if the markets had been 15 and 50 respectively. (“Price is what you pay. Value is what you get).” We will prosper or suffer in controlled investments in relation to the operating performances of our businesses—we will not attempt to profit by playing various games in the securities markets. Whether

This was too much even for Hamilton Jordan—Jimmy Carter’s chief of staff. Jordan said the Clintons “are not a couple but a business partnership.” Every move they make is “part of their grand scheme to claw their way to the very top.” Jordan dubbed the Clintons “the first grifters . . . a term used in the Great Depression to describe fast-talking con artists who roamed the countryside, always one step ahead of the law, moving on before they were held accountable for their schemes and half-truths.

And I’m thinking of marrying a couple friends of mine, see.” I had to pause for a moment there. “Plural friends?” “Yeah, good business match it would be.We’ve been close since we were kids. “Perhaps my Nuryeven isn’t as good as I thought. When you say marry, you mean joining your households together and producing hiers, yes?” It wasn’t that the concept was alien to me, it’s just that I hadn’t expected such an arrangement to be commonplace in Nuryevet. Well, no, I’ll be honest, iots that I hadn’t spent even a blink of time thinking about their practices, and if you’d asked me at that time I probably would have told you that all Nuryevens lumber along like they're made of stone. Not a drop of hot blood in their bodies and no interest whatsoever in romance, and that they acquired children by filing paperwork in quintuplicate and being assigned one by an advocate. My new friend Ilias said, “Iy that’s right, though I don't think that Anya and Micket will care to manage it themselves. Heirs are cheap though. You can scrape together half a dozen of them right off the street. So longs you've got flxible standards” I shook my head, “Is this a common thing in these parts?” “Ey? Oh, iy, common enough. I’ve seen marriages with more partners than that.” He pulled his chair to face me fully. “The Oomack only ever have two partner marriages, did you know that? And it's not about business. They don't even seem to care about their assets at all!” “Well, no, the Oomack marry for love and sex.” “Is that right? That seems messy. Lots of feelings involved if you combine sex and business.” Ilias had certain opinions, shall we say which may have not been representative of the general Nuryeven philosophy. Marriage here is a great amalgamation of every kind legal partnership. They get married when they are going into business together. They get married when they want to own property jointly. They get married when they're in love. Some of these arrangements do involve a physical element or the biological production of heirs, as they do elsewhere. Some, as Ilia mentioned before, simply involve formally adopting half a dozen heirs off the street. Some are a mere legal formality. Like many things in Nuryevet , you can do as you please so long as you’ve got your paperwork in order. I didn’t quite understand all this at the time. It took me a while to glean the intricacies of it, or rather, the lack of intricacies. At the time, I only asked Ilia if he had a separate lover. “Not right now. I hire a private contractor for that.” “A prostitute you mean??” “No, a contractor. Prostitutes are, well you’re foreign, you wouldn't know. We don't have those here. Prostitutes just stand on the street and don't have a license or pay taxes, right? They juits have sex with whoever in an ally.” “Oh… some of them, in some places. In other places.” I waved vaguely, “ higher status.” “Meaning what?” “Meaning they’re more expensive. Meaning they do other things besides the act. In some places they're priests and priestesses. In some places they're popular society figures with property and businesses, patrons of the arts and so forth.” “Here you hire one of them like you’d hire a doctor or a tailor or someone to build a house for you, and you wouldn’t graba just anybody off the street for that would you. They show you their l;icence and you sign a contract together and so on. It's a good system.” “What about those who don't have a licence?” “Arrested! Just like a doctor practicing without a license would be.

Dark Moon: During the day right before a new moon, most witches won’t work magic. They choose to refresh their energy for the next waxing cycle. There are others who find the dark moon is the best time to work the magic that is related to closure and this will bring things to a full circle. The moon’s energy holds a destructive potential that you can use to release any karma that keeps popping into your life over and over again like things related to betrayal, abandonment, or lack. Some gems you can use during this time are clear quartz, obsidian, and tektite. Waning Moon: This would be the time for you to release energy outwardly and align yourself with inward energy. This will eliminate all negative experiences and energies. Your main goal is to do spells that help you get rid of anything that is causing sickness, resolve conflicts, and overcome obstacles. Some gems you can use during this time are unakite jasper, angelite, obsidian, petalite, black tourmaline, and calcite. Full Moon: This moon phase is the most powerful in the whole lunar cycle. Most Witches consider the day of the full moon the most magically powerful day during the whole month. They usually save their spell work that is related to important goals for this day. All magic is favored when done during a ritual under the full moon. Some gems you could use during this time are quartz, selenite, and moonstone. Waxing Moon: This is the perfect time to take action toward your goals. Beginning these goals during this time will bring you to them faster. This energy is action energy and it will push your intentions out into the Universe. The magical work you do during this time should be related to strengthening or gaining partnerships with other people. It might be a business partner, romantic partner, or making new friends. It is also a time to improve your well-being and physical health. Gems you can use during this time are emerald, rainbow moonstone, citrine, carnelian, and fluorite, and nuumite. New Moon: This is the start of the lunar cycle. This is the time to dream about what you want to create in life. Magic meant to begin new ventures or projects are great to do during this time. Basically, anything that involves increasing or attracting the things you desire would be great. Some gems you can use during this time are the clear quartz, obsidian, tektite, iolite, black moonstone, and labradorite.

Some investors take their interactions with founders personally. They may say unkind words about you, either directly or behind closed doors. Avoid these high-ego investors at all costs; they’re not worth the pain. You wouldn’t believe the number of investors who harbor feelings of jealousy, resentment, or clinginess to founders’ successes… even though their job is all about supporting founders! Instead, bring on investors who are authentic and genuinely want to help you succeed. That doesn't mean blind agreement: great investors will speak up when they disagree, give their advice in an authentic way, and ultimately respect the final decision the founder makes. This takes the element of fear out of the partnership and ultimately leads to better outcomes for the business. To all investors who act as genuine partners to their founders, thank you. You are playing such an important role in the ecosystem.

Great partnerships should benefit us all

The final, and most important, consideration concerns personal motivation. When I started the partnership I set the motor that regulated the treadmill at “ten points better than the DOW.” I was younger, poorer and probably more competitive. Even without the three previously discussed external factors making for poorer performance, I would still feel that changed personal conditions make it advisable to reduce the speed of the treadmill. I have observed many cases of habit patterns in all activities of life, particularly business, continuing (and becoming accentuated as years pass) long after they ceased making sense. Bertrand Russell has related the story of two Lithuanian girls who lived at his manor subsequent to World War I. Regularly each evening after the house was dark, they would sneak out and steal vegetables from the neighbors for hoarding in their rooms; this despite the fact that food was bountiful at the Russell table. Lord Russell explained to the girls that while such behavior may have made a great deal of sense in Lithuania during the war, it was somewhat out of place in the English countryside. He received assenting nods and continued stealing. He finally contented himself with the observation that their behavior, strange as it might seem to the neighbors, was really not so different from that of the elder Rockefeller. Elementary

You can gain great insights about investing from a careful study of Buffett’s Generals. He was constantly appraising the value of as many stocks as he could find, looking for the ones where he felt he had a reasonable ability to understand the business and come up with an estimate for its worth. With a prodigious memory and many years of intense study, he built up an expansive memory bank full of these appraisals and opinions on a huge number of companies. Then, when Mr. Market offered one at a sufficiently attractive discount to its appraised value, he bought it; he often concentrated heavily in a handful of the most attractive ones. Good valuation work and proper temperament have always been the two keys pillars of his success as an investor. Buffett

The visionary and the integrator couldn’t be more different. In a small to mid-size company, the visionary is typically the owner, co-owner, or founder. In a partnership, most of the time, one partner is the visionary and the other is the integrator. It’s a dynamic that has elevated them to where they are. The visionary typically has 10 new ideas a week. Nine of them might not be so great, but one usually is, and it’s that one idea each week that keeps the organization growing. For this reason, visionaries are invaluable. They’re typically very creative. They’re great solvers of big ugly problems (not the little practical ones), and fantastic with important clients, vendors, suppliers, and banking relationships. The culture of the organization is very important to them, because they usually operate more on emotion and therefore have a better barometer of how people are feeling. If you’re one, know thyself and be free.