Founders
Episode 303 #303 Rose Blumkin (Warren Buffett’s Favorite Founder)
Founders

Episode 303: #303 Rose Blumkin (Warren Buffett’s Favorite Founder)

Founders

Episode 303

#303 Rose Blumkin (Warren Buffett’s Favorite Founder)

David Senra is the host of Founders, where he studies history's greatest entrepreneurs. This is what he learned from reading The Women of Berkshire Hathaway: Lessons from Warren Buffett's Female CEOs and Directors by Karen Linder.

What I learned from reading The Women of Berkshire Hathaway: Lessons from Warren Buffett's Female CEOs and Directors by Karen Linder. 

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I have these bronze busts of Warren Buffett and Charlie Munger in my home. If you want them in your house or office go to https://www.berkshirenerds.store. A fun side project by my friends at Tiny

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Follow one of my favorite podcasts: Invest Like the Best and listen to episode 326 Alexis Rivas—A New Blueprint for Homebuilding 

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[6:55] Mr. Buffett, we're going to put our competitors through a meat grinder. — Buffett: The Making of an American Capitalist by Roger Lowenstein. (Founders #182)

[9:06] There are several "Going Out of Business" advertisements from competitors' stores framed and hanging on the wall.

[13:26] As a general rule, bet on the quality of the business, not on the quality of the management-unless, of course, you've got a Mrs. B. in your hand. If that is the case, go all in. She was a business genius. —  The Tao of Charlie Munger (Founders #295)

[20:46] Retirement is fatal. — David Ogilvy (Founders #189)

[21:17] Business like raising a child, you want a good one. A child needs a mother and a business needs a boss.

[21:44] What is your favorite thing to do on a nice evening? Drive around to check the competition and plan my next attack.

[22:48] He was 52 and famous. I was 33 and a junior account executive. Early on, he wrote a letter to one of my clients. After listing eight reasons why some ads prepared by the company’s design department would not be effective, he delivered his ultimate argument: The only thing that can be said in favor of the layouts is that they are “different.” You could make a cow look different by removing the udder. But that cow would not produce results. So began my “David” file. Almost everyone who worked at the agency kept one.

The King of Madison Avenue: David Ogilvy and the Making of Modern Advertising by Kenneth Roman. (Founders #169)

[27:21] Buffet said: If she ran a popcorn stand I’d wanna be in business with her. She's just plain smart. She's a fierce competitor and she's a tireless worker.

[27:37] Buffett “on how Mrs. B ran her business:

One question I always ask myself in appraising a business is how I would like, assuming I had ample capital and skilled personnel, to compete with it. I'd rather wrestle grizzlies than compete with Mrs. B.

They buy brilliantly, they operate at expense ratios on to t competitors don't even dream about, and they then pass on to their customers much of the savings.

It's the ideal business—one built upon exceptional value to the customer that in turn translates into exceptional economics for its owners."

[30:32] She hired a chauffeur who drove her around Omaha each day. The driver took her to other stores. She looked in the windows and checked to see how many cars were in their parking lots. It didn't take long for her to plan her revenge.

[31:41] There was no looking back. She just swung.

[33:12] I had lunch with Sam Zell (Founders #298)

[34:07] Aspiring business managers should look hard at the plain, but rare, attributes that produced Mrs. B’s incredible success. Students from 40 universities visit me every year, and I have them start the day with a visit to NFM. If they absorb Mrs. B’s lessons, they need none from me.

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I have listened to every episode released and look forward to every episode that comes out. The only criticism I would have is that after each podcast I usually want to buy the book because I am interested so my poor wallet suffers. ” — Gareth

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#303 Rose Blumkin (Warren Buffett’s Favorite Founder)

Introduction

The tale of Rose Blumkin is a quintessential immigrant success story. She was born in a village near Minsk, Russia. She and her seven siblings lived in a two-room log cabin and had to sleep on straw mats. Her father was a rabbi and spent his days in religious study. Her mother ran a small general store. “My father was so religious”, she said, “that my mother had to support us. He only prayed”. Rose never attended school. She started helping her mother in the store at the age of six. She once woke up in the middle of the night and saw her mother washing clothes and baking bread for the next day. Rose said, “When I grow up, you're not going to work so hard. I can't stand it, the way you have to work day and night”.

When Rose was 13, she left home walking barefoot for 18 miles to get to a train. She stowed away on the train and got off 300 miles away at a small town near the Ukrainian border. She went from shop to shop looking for a job and a place to stay. “You're just a kid”, one store owner said. “I'm not a beggar”, Rose shot back. With only $0.04 in her pocket, she asked to sleep in the house that night. “Tomorrow, I go to work”, she said. The owner relented, and Rose got up before dawn the next morning and cleaned the store.

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