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Rose Blumkin: Women of Berkshire Hathaway [Outliers]

May 6, 2025 43m 58s 21 insights
Rose Blumkin didn’t just build a business. She revolutionized retail. After fleeing Russia with $66 in her purse, she opened a basement furniture store in Omaha at 43 years old—with no English, no education, and no connections. Her formula? Sell cheap, tell the truth, don't cheat the customer. Nebraska Furniture Mart would survive depressions, fires, lawsuits, tornadoes—and eventually become a billion-dollar empire Warren Buffett called “the ideal business.”  Learn how Mrs. B’s relentless focus, radical simplicity, and unbreakable work ethic built an empire from scratch—and what her story teaches us about business, resilience, and the power of earned trust. This episode is for informational purposes only and most of the research came from "Women of Berkshire Hathaway" and oral history interviews with Rose Blumkin and her daughter Frances. Check out highlights from this book in our repository, and find key lessons from Blumkin here — ⁠fs.blog/knowledge-project-podcast/outliers-rose-blumkin
Actionable Insights

1. Embrace Core Principles

Adopt a clear, simple business philosophy like ‘sell cheap, tell the truth, don’t cheat the customer’ and take these ideas seriously to guide all decisions and interactions.

2. Cultivate a Win-Win Mindset

Prioritize long-term customer relationships by offering genuinely good deals, understanding that short-term profit sacrifices lead to greater volume and goodwill over time.

3. Develop High Agency

Refuse to accept artificial constraints and view circumstances as variables you can change. Instead of complaining about problems, actively create solutions and alternative paths.

4. Bias Towards Immediate Action

Don’t wait for perfect conditions; create momentum by taking immediate action, especially in the face of adversity. Action generates options that passivity never reveals.

5. View Disasters as Opportunities

Approach catastrophes not as endings but as forced opportunities for reinvention. Be transparent and authentic during crises to transform potential ruin into marketing opportunities that deepen trust.

6. Build an Unshakeable Reputation

Understand that your reputation, built on the collective positive experiences of others, creates opportunities and determines which doors open for you, even before you enter a conversation.

7. Focus is a Superpower

Maintain a singular, disciplined focus on your core business or goal, eliminating distractions. This immersion creates a depth of experience and knowledge that competitors cannot match.

8. Prioritize Character Over Credentials

When hiring or partnering, look past formal education or pedigree and assess for intelligence, energy, and integrity. Trust is paramount, as a good deal cannot be made with a bad person.

9. Maintain Unreasonably High Standards

Set extremely high standards for performance and customer focus, acting decisively when those standards are not met. Character reveals itself in the smallest actions, and excellence demands unreasonable commitment.

10. Practice Hands-On Quality Control

Maintain direct product experience and view quality control as a personal responsibility that cannot be delegated, even as the business grows. Personally inspect shipments and feel the product to ensure quality.

11. Choose the Right Co-Pilot

Select partners whose strengths complement your weaknesses, amplifying your overall impact. A strong partner provides a steady foundation and balances your intensity.

12. Leverage Slights as Fuel

Turn being discounted, overlooked, or slighted into a powerful, enduring source of motivation. This ‘chip on your shoulder’ can drive you to work harder and push further.

13. Endure Discomfort (Salt Water)

Cultivate a ’taste for salt water’ by developing the capacity to endure discomfort and work through pain. Exceptional people don’t avoid pain; they push through it.

14. Seek Small Opportunities

Be vigilant for every opportunity to make even a small profit, no matter how insignificant it seems. Value every customer and every potential transaction.

15. Innovate Marketing & Sourcing

Think creatively to attract customers and source products, especially when conventional channels are blocked. For example, rent out products or find alternative suppliers.

16. Utilize Competitive Intelligence

Empower customers to gather pricing information from competitors. Use this data to strategically price your products and offer better deals.

17. Show Gratitude & Build Goodwill

Express genuine appreciation for support, such as giving gifts to firefighters who helped in a crisis. These gestures build goodwill and can also serve as strategic marketing.

18. Invert the Interview Process

Instead of relying on rehearsed interview personas, observe people in their natural state or during interactions to assess their character and suitability for a role.

19. View Customers as Investors

Adopt a perspective where customers are ’loaning’ you money, creating an obligation to provide them with genuine value and a return on their investment in you.

20. Live by Core Beliefs

Do not optimize your life around what others think of you. Instead, let your unwavering core beliefs and principles guide your decisions and actions, even if it leads to conflict.

21. Simple Scales, Fancy Fails

Strive for simplicity in your business philosophy and operations. Simple approaches eliminate friction, move faster, and scale with less overhead and fewer bottlenecks than complex systems.