Wednesday, September 24, 2008
Zig vs. Zag
by
Late yesterday astute investor Warren Buffett’s firm, Berkshire Hathaway, bought $5 billion in Goldman Sachs stock – a move that many will no doubt see as reckless or foolish. One of the things that has made Buffett the world’s richest human being is that he zags when the rest of the market zigs. The scared are running for safety. The savvy are looking for gains.
Smart companies that zag when other companies zig can reap similar benefits. Many firms would say, “There is a downturn; we need to cut our marketing budget.” Yet business pundits have suggested for decades that increasing your marketing and advertising during a recession –when everyone else is hunkering down – is one of the fastest ways to increase market share.
If you want to read more about how to build a high-performance brand using a contrarian approach check out Marty Neumeier’s excellent book, Zag.
