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Warren Buffett does deals with a handshake and one-page contracts on multi-billion dollar companies. Because he makes everything simple to close a deal. Normal
by FrontierPsych 4y ago
Warren Buffett does deals with a handshake and one-page contracts on multi-billion dollar companies. Because he makes everything simple to close a deal.
Normally, companies spend a year to close. They quibble over tiny little things of no consequence - like a variance of .7% from one month's revenue in last March's revenue to April's revenue. Weeks of accountant's time, sales managers' time, all the owner's time.
I've screwed up deals because of lengthy contracts for small fry shit. That nobody in their right mind would accept.
I understand contracts more than most. I don't buy and sell nuclear power plants with that level of detail. My businesses are small - standard boilerplate, I know what all the clauses mean. It's not that difficult to understand basic business legal documents. Could one word or comma make a difference if I do it? Sure. As attorneys are always glad to point out. But that might be the case in 1 out of 100,000 contracts. I don't want to get a car like the President of the United States limo that costs $15 million - or whatever the fuck it costs - to keep him safe. I'm ok with a used 3 year old Toyota Camry that costs me $15,000. But am I as safe as the $15 Presidential limo? Do I give a fuck if I'm not as safe? That's a rhetorical question.