Founders – #303 Warren Buffett’s Favorite Founder: Rose Blumkin

Intro

In this episode of the “Founders” podcast, host Andrew Wilkinson explores the inspiring story of Rose Blumkin, Warren Buffett’s favorite founder. Rose Blumkin, also known as Mrs. B, was a relentless and dedicated entrepreneur who built a successful furniture business and became the first female manager at Berkshire Hathaway. Her story is a testament to hard work, determination, and the power of honesty in business.

Main Takeaways

Rose Blumkin’s Journey to Success

• Rose Blumkin’s childhood was filled with hard work and poverty, inspiring her to seek a better life.
• At 13, Rose left home and walked 18 miles barefoot to catch a train and find work.
• Rose worked her way up to become a store manager at the age of 16.
• Rose immigrated to the United States and worked hard to save money to bring her husband over.
• Rose became the first female Berkshire Hathaway manager when Nebraska Furniture Mart was acquired by Warren Buffett in 1983.

Rose Blumkin’s Business Strategies

• Rose founded the Furniture Store in Omaha at the age of 43, which grew into a business with annual profits of over $15 million.
• Rose’s dedication to selling furniture continued throughout her lifetime, with furniture in her house available for purchase by guests.
• She grew her business by selling in large volumes and making a small profit of 10%, which angered her competitors.
• Rose faced discrimination from furniture merchants in Chicago and vowed to kick them out of her store one day.
• She signed a non-compete agreement with Warren Buffett at age 99 to protect her business.

Rose Blumkin’s Impact and Legacy

• Rose was a business genius who believed in honesty and making things right for her customers.
• She was a brilliant salesperson with a savant capacity for arithmetic.
• Rose’s dedication to sale continued throughout her lifetime, with furniture in her house available for purchase by guests.
• Warren Buffett considered Mrs. B a partner and said she had forgotten more than he’ll ever know.
• Nebraska Furniture Mart is the ideal business, one built upon exceptional value to the customer that in turn translates into exceptional economics for its owners.

Summary

Rose Blumkin’s Journey to Success

Rose Blumkin’s inspiring journey began with a childhood filled with hard work and poverty. At a young age, she left home and walked 18 miles barefoot to find work. Through her determination and hard work, she worked her way up to become a store manager at the age of 16. After immigrating to the United States, she saved money to bring her husband over. Her entrepreneurial spirit caught the attention of Warren Buffett, who later acquired Nebraska Furniture Mart and made Rose the first female manager at Berkshire Hathaway.

Rose Blumkin’s Business Strategies

Rose Blumkin’s business strategies were rooted in simplicity and honesty. She founded the Furniture Store in Omaha at the age of 43 and grew it into a highly profitable business. Rose believed in selling furniture in large volumes and making a small profit, which set her apart from her competitors. She faced discrimination from furniture merchants in Chicago but remained determined to succeed. Rose’s dedication to her business was unwavering, even allowing guests to purchase furniture from her own home. Her partnership with Warren Buffett and the non-compete agreement she signed at age 99 showcased her commitment to protecting her business.

Rose Blumkin’s Impact and Legacy

Rose Blumkin’s impact on the business world was significant. She was known for her honesty, brilliant sales skills, and dedication to her customers. Warren Buffett considered her a partner and admired her business acumen. Nebraska Furniture Mart, the business Rose built, exemplifies exceptional value to customers and exceptional economics for its owners. Rose’s story serves as a reminder of the power of hard work, determination, and integrity in achieving success.

Conclusion

Rose Blumkin’s journey from poverty to becoming Warren Buffett’s favorite founder is a testament to the power of determination and honesty in business. Her story inspires entrepreneurs to persevere through challenges, embrace simplicity, and prioritize the needs of their customers. Rose Blumkin’s legacy lives on through Nebraska Furniture Mart and her impact on the business world.