Principles Friday Newsletter
The Woman who was Praised by Warren Buffet
Estimated reading time (2 minutes)
Happy Friday, everyone.
Welcome to Principles Friday, where I share one principle that can help you in your life or business, one thought-provoking question, and one call to action toward that principle.
If you also like to listen to the episode, here is an audio version.
Principle of the Week
“Tell the truth, sell cheap, and don’t cheat, don’t lie.” by Rose Blumkin
Rose Blumkin, also known as Mrs. B, was a remarkable woman who founded Nebraska Furniture Mart in Omaha, Nebraska. Despite having no formal education and arriving in the United States as a refugee from Russia with only $50, she built a multi-million dollar business empire based on her honesty, integrity, and hard work principles.
One of the fascinating stories about Rose Blumkin is how she negotiated the sale of Nebraska Furniture Mart to Warren Buffett's Berkshire Hathaway in 1983. She was 89 years old then, and the store was valued at $60 million. However, instead of relying on lawyers and complex negotiations, Mrs. B used her signature no-nonsense approach and her deep trust in people to make the deal happen.
According to reports, she and Warren Buffett met for lunch at a local steakhouse, where they scribbled out the terms of the sale on a paper napkin. When the lawyers arrived to finalize the deal, Mrs. B reportedly told them, "Lawyers are always trying to complicate things. Let's shake hands and get it done." And that's exactly what they did - the deal was sealed with a handshake and a smile.
This story is a testament to Rose Blumkin's unique combination of business savvy, practical wisdom, and unwavering principles. Despite facing countless challenges and obstacles throughout her life, she remained true to her values and built a legacy that continues to inspire and impress people worldwide.
Question to Ponder
What are some common situations where I'm tempted to compromise on honesty or integrity, and how can I stay true to these principles in those moments?
Call to Action
This week, make a conscious effort to practice honesty and integrity in one specific area where you've struggled in the past. This could be in your interactions with customers or clients, in your relationships, or even in your self-talk.
Whenever you're tempted to compromise on these principles, take a moment to reflect on your values and the long-term impact of your actions. Remember that even small acts of honesty and integrity can build trust, strengthen relationships, and make a positive difference in your life and the lives of others.
Video of the Week
Here is a rare Warren Buffett video on Mrs. B - Rose Blumkin and Nebraska Furniture Mart business.
If you want to learn more principles, I interview founders on my podcast, The First 100, where they share how they acquired their first 100 paying customers. This week:
Episode 53 - The First 100 with Don Bosco, the Founder of Bhuman.ai
Episode 52 - The First 100 with Dirk Lueth, the Founder of Upland
And that’s a wrap for now!
Thank you for giving your attention and checking this edition out.
If you enjoyed this edition, it would MEAN A LOT to me if you could take a few seconds and help me by sharing this article with your friends.
If you are not a subscriber, sign up and join others who receive it directly in their inbox weekly.
A very interesting question to ponder. For me, it’s when I am weighing up another person’s feelings or response to how honest am. I guess I’m conflicted in those situations - should I compromise my principles and let them take a hit or prioritise someone’s feelings. Of course it’s not binary, I know. And great read btw.
Thanks, Hadi!