Growth5 Blog

Wednesday, January 20, 2010

Best Advice I Ever Got: Wilbur Ross

Fortune recently ran a piece titled, "The Best Advice I Ever Got" with Wilbur Ross, CEO of W.L. Ross & Co. Ross specializes in leveraged buyouts and distressed businesses. The advice that has made the most difference in his career:
1. "You're better off backing a mediocre idea that's brilliantly implemented than a brilliant idea that's badly executed."

2. "The biggest risk is the question you forget to ask, because the danger is always something you don't know."

3. "Set a walking-away price. Before I go into negotiations, I lay out what our real limit is - where we'll go on price and other key terms. You have to have that discipline, because auction fever is a lethal disease."

4. "Keep your cool. Remind yourself that no one deal is crucial. If you can't get reasonable terms, just let it go. There's always another one later."

5. "Study before you leap. We usually study an industry for a year before going in. First, we make a big list of everything that's wrong with the industry. Then we make a second list, asking, if we were in control, what would we do differently? When the two lists match, we're ready to get going."

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At January 24, 2010 at 12:32 PM , Blogger Debbie Dreher said...

Great advice!


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