TAO OF WARREN BUFFET #3

Ask too much
Ask too much

Never be afraid to ask for too much when selling

or offer too little when buying.

Warren understands that people fear embarrassment if they ask too high a price when selling or offer too low a price when buying.No one wants to be seen as greedy or cheap.Simply stated,in the world of business,how much money you get from a sale or how much you have to pay when making a purchase determines whether you make or lose money and how rich you ultimately become.Once negotiations begin,you can come down in your selling price or up in your buying price.But its impossible to do the opposite.

Warren has walked from many a deal because it failed to meet his price criteria.Perhaps the most famous example was his Capital Cities purchase of ABC .Warren wanted a larger share of the company for his money than Capital Cities was willing to part with-so he walked from the deal.the next day Capital Cities caved in and gave him the deal he wanted.Ask and you might just receive,but if you don’t ask…..

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