Wednesday, June 30, 2010

The First Rule of Business

is to stay in business. Cash flow is just the commonest means to remain so. Be open and flexible to all options. Always in the market there is a short term fool willing to act in ways that make doing the business difficult and unprofitable. In such times, you cannot do well, but you must figure a way to survive. Hogging the media now, I wouldn't be surprised if BP which was out competing many of its peers crash and burn as a result.

If governments play it fair, which they aren't likely to, Goldman Sachs, Citi, Morgan Stanley etc., should also have short lives.

If the government is your enemy, you cannot win. It is better to look for some other business to do.

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