In “The Essays of Warren Buffett: Lessons for Corporate America,” the Berkshire Hathaway CEO lays out a problem that plagues many businesses: prioritizing short-term goals over long-term success.
“If management makes bad decisions in order to hit short-term earnings targets, and consequently gets behind the eight-ball in terms of costs, customer satisfaction or brand strength, no amount of subsequent brilliance will overcome the damage has been inflicted,” Buffett writes.
If you don’t think long-term, you will be left behind. Sears is learning this now with Kmart. By focusing on the current quarter, they’re not investing in their future.