Farnam Street helps you make better decisions, innovate, and avoid stupidity.

With over 350,000 monthly readers and more than 88,000 subscribers to our popular weekly digest, we've become an online intellectual hub.

Alice Schroeder on Buffett and Kraft

Warren Buffett is really a master at creating no lose situations.

From Alice Schroeder:

What really jumps out at me is that Buffett arranged something like one of his classic “no-lose deals.” These are deals in which Buffett can’t lose no matter how events turn out. Buffett spends a lot of time finding ways to reduce risk, and it’s worth studying the myriad techniques he uses. Here the only scenario in which Buffett could look bad is if he had killed the deal over price, and it turned out to be a home run for someone like Hershey. People would say that he made Rosenfeld drink the Gatorade.

Continue Reading