A SIMON SAMPLER

ON REVITALIZING A COMPANY: "Picasso says that creativity is a series of destructions. You really don't create anything until you knock something else out of the way. You have to tear down homes before you put in a freeway. But in professional management, and in the investment process, you recognize that you should tear down only so much before it is time to build anew, for excessive tearing down takes the destructive process beyond the realm of creativity. Something destructive goes in before the constructive comes out. The question is, how much destruction can be tolerated?"

ON BUSINESS & EDUCATION: "Many educational institutions have become businesses and factories, while many businesses have become fine educational institutions. You can do just as much educating in the steel or food business as you can in the educational system. By measuring everybody equally, the university becomes a factory, destroying motivation and giving the kids something to complain about. But business is the great instructor."

ON ENTRENCHED MANAGEMENT: "The not very good thing that happens in most corporations is that the president appoints a lot of the directors. Some companies oper>> ate a mutual protective society for presidents. They all cross-exchange. They stay on each other's boards and they protect each other. They put out a ballot with one slate and you can vote yes or no, but there is a 99% vote because there is only one slate. You have no alternative but to vote with management. Not all of the stockholders' suggestions can be bad; some should be listened to. But most management doesn't listen and it still gets that 99% vote year after year, no matter how lousy a job it does."

ON THE ECONOMY: "I am inclined to believe that much of our economy is based upon the feelings of people rather than upon reality. And therefore the primary belief I have is never to be too sure about anything."

ON THE FUNCTION OF A CORPORATION: "Most companies will say: 'We are in business to make a profit.' I think the better companies could just as well say: 'Our primary purpose in business is sociological. Our whole objective is to treat our customers right, and treat our stockholders right, and treat our employees right.' I think many businesses are run on the basis of putting sociological needs first. We are beyond the day and age of the need of capitalism for survival. We need it for only one thing--the betterment of the human being. Certainly we have a lot more than we can eat, haven't we?"

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