Seven Words that Change the Game

This past weekend, I saw a documentary on Warren Buffett, one of the world's richest men. Warren's "secret" to investing is simple...and extremely difficult. Simply locate undervalued companies, whose businesses you understand and buy them.

The documentary focused on Berkshire Hathaway's most recent acquisition, a company based in Israel, that makes cutting tools, used in a wide variety of manufacturing companies.

This is significant because it's the first time he has purchased a non-American company.

But this isn't what caught my attention.

Rather, it was an offhanded comment he made discussing where to search for the next great value. The reporter didn't catch it and never followed up with a question.

The comment was: "Your competitors know everything that you do."

As soon as those words were spoken, a lightbulb went on in my head. I have spent years in various businesses talking strategy, identifying core competencies, trying to identify and leverage competitive advantage.

These exercises were both energizing and comforting. We, after all, had a competitive advantage - core competencies that we could rely on to drive us "to the next level". We could take solice in the fact that we possessed the magic, secret sauce (whatever that was) that allowed us to continue to make money and keep the shareholders happy.

I wonder how the tenor of the sessions might have changed, had Warren Buffett been in the room and had made the statement.

Would we have had a heightened sense of urgency? Would we have become more action oriented? Would we have stressed results accountability more? Would we have generated "bigger ideas"?

"Your competitors know everything that you do". Seven words that change the game.

Try opening your next strategy session with Warren Buffett's statement and see if it changes the entire nature of the debate.