The Importance of Taking Responsibility for Bad Ideas

Kare Nielsen is possibly the best initial picker of stocks in the world. But he's not very good at managing the stocks once they're in his portfolio, because there isn't a process for saying, I was wrong. The right thing to do is to say I was wrong and turf the stock. Just turf it. And so you need your staff to be able to come to you and say that they were wrong. They must never be punished emotionally, psychologically, financially for telling you that they werewrong. You also have to reward them for giving you good ideas. It's psychologically very hard to run a business where your staff get all the credit and you get all the responsibility.