Buffett’s $50 million credit card blunder
March 1, 2010 Edited by Brahm Canzer
Filed under Part 3 Management: Empowering People to Achieve Business Objectives, Part 4: Marketing Management
Description: Peddling credit cards isn’t so easy that a caveman can do it. That seems to be the conclusion Berkshire Hathaway (BRKA, Fortune 500) chief executive Warren Buffett reluctantly reached last year, when he shut down a money-losing credit card business he had dreamed up for Berkshire’s Geico car-insurance unit.
Source: CNNMoney.com
Date: 02/27/2010
Link: http://money.cnn.com/2010/02/27/news/companies/berkshire.geico.fortune/index.htm
Questions for discussion:
- Explain the failure of this product?
- Does this article suggest that Warren Buffett might be a better financial analyst than a marketing expert?
