This saga reminds of Warren Buffet's advice to invest only in businesses that possess "excellent business economics and an outstanding manager." In my business

This saga reminds of Warren Buffet's advice to invest only in businesses that possess "excellent business economics and an outstanding manager." In my business we've conducted several off-shoring experiments, and they have largely failed to realize a significant return. The lesson I learned from observing and assisting in those experiments is that the secret sauce in business is reputation. Finding people who are honest, reliable, and intelligent can be very difficult. When you find people like that, "grapple them to thy soul with hoops of steel." If, like Michael Arrington, you wander into an industry with nothing but your hubris to guide you, you'll most likely be taken for a ride.