How does Warren Buffett get it right all the time?  This blog post, Big Blue Buffett, sheds light on the importance of being dynamic.

Buffett’s renowned investment in Coca-Cola in the 80’s has created a trend for people to follow his speculations.  The highly-respected investor believes in “value investing,” and avoids technology companies because they are ephemeral.  However, his recent buy-in of IBM proved otherwise.

Was it a wise investment?  Considering that IBM is not in the same position as it was last decade,  and that this investment goes back on his own philosophy, probably not.  But remember that Buffett invests profitably.  Also consider IBM’s shift from selling computers to selling higher margin products such as softwares and consulting services, the company may demonstrate a breakthrough.

This is a story for business to learn.  As the business world changes, companies and investors must be flexible.  IBM, once famous for computers, has changed direction in attempts to regain market power, and Buffett saw value in this.

By seeing the need to change and knowing when to change, one can be the creator of a trend instead of a follower, as exemplified in both IBM and Buffett.  And that, is the basis of their success.

Reference:
–Big Blue Buffett