TAO OF WARREN BUFFET #6

Contract
Contract

It is impossible to unsign a contract,so do all your thinking before you sign.

Warren has learned that once you sign ,the deal is done.You cant go back and rethink whether it was a good deal or a bad one.So do all your thinking before you sign. This is easier said than done,for once that paper is shoved under your nose ,sound reasoning often flies out the window in the name of getting the deal done. Before signing a contract ,imagine all the things that could go wrong.the road of good intentions is paved with what were foreseeable troubles . Thinking long and hard before you take  the leap will save you from having to think long and hard about all the trouble you just signed on for.

Warren forgot to put a non- complete clause in his contract with eighty nine year old Rose Blumkin when he fought her Nebraska furniture mart. A few years later Mr.B got angry at the way things were being done at the store ,so she quit & started up a new store across the street – stealing tons of business from NFM. After a few years of suffering the stiff competition , Warren caved in and agreed to buy her new store for a cool $5 million .The second time around he had her sign the non complete agreement,and it is lucky for him that he did since she continued on in the business until she was 103.

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