must be calculated before the start of a good cost, because the cost of entrepreneurship determines whether the entire entrepreneurial path can go smoothly, and the following Xiaobian look at Buffett’s entrepreneurial story.
1965 Buffett acquired Berkshire, when the company is a textile factory, the main production of suit lining. "It took me years to figure out that it wasn’t a very good business," Buffett said. In the textile industry, though, our textile mills account for more than half of the market share of the men’s suits in the United states. If you wear a suit of men, it’s probably the lining of our Hathaway brand. Sears department stores us as " best supplier of the year ". They appreciate us very much. But the problem is, even if we only want to raise half cents per yard, they also do not agree, the reason is very simple: there has never been any person into a men’s clothing store to buy the use of specified Hathaway brand lining suit. Customers do not see who produced the lining."
1985, Buffett barely Berkshire textile business for 20 years, had to close the business, because the labor cost is too high: "most of our troubles can be directly or indirectly attributed to competition from abroad, the national workers wages and the minimum wage is only a small part of the."
1993 Buffett spent $475 million acquisition of the United States famous high-end brand shoes enterprises Dexter, thought that the company’s brand competitiveness can resist the cost of competition in the Asia Pacific shoe prices, he was wrong.