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Hewlett-Packard Innovation in All Areas In 1938, Stanford graduates Bill Hewlett and Dave Packard formed their own electronics company just four years out of college. With $538 in working capital, they started out in a garage behind a house in Palo Alto, California. They flipped a coin to see whose name would come first in the formal partnership name. As the company grew, the founders became known for management by walking around and management by objective, both unusual practices at the time. When the partners began building their headquarters, they constructed the building so that it might be converted into a grocery store if the business failed to grow. The product line continued to expand, and revenue topped $2 million, then $5 million, then $28 million as the company went public in 1957, with around 1,800 employees on board. All employees with six months of service or more received a stock grant. The company then moved to a 50-acre hilltop site complete with horseshoe pits, volleyball courts, and a company cafeteria. In the late 1960s, H-P advertised the first personal computer and introduced the concept of flexible schedules to its offices. The company passed $2 billion in revenue in the

Now let s return to those other announcements on the list. They re rare, but when they do happen, you won t be able to plan for them. If the news hits the wire midday and it s immediately affecting the stock price, you should just stop trading that stock. Get out of your position quickly; take a loss if you have to. The price could drop 10 times faster then you re used to, and it could do that in seconds. As you would with the earnings announcements, avoid that ugly scene by trading other stocks for the remainder of the day. Trading on news is very risky and unpredictable. But it s dangerously easy for an amateur to perceive the news as a leading indicator for stock price predictions. If an analyst announces, quite of cially and with pomp, that he thinks the price target will reach X amount of dollars, then the amateur might be persuaded to trade in that direction. Don t. You should perceive the news as a tool, not an indicator. Then you ll understand that it s a mistake to trade on news. Your stock charts are indicators of where the stock is heading, and the news should only be heeded when it s the type of information that will clearly interfere, intraday. Having access to the news is a very useful tool, but remember that it is only a tool. When an earnings announcement gets released by the wire, you should know that within seconds, the charts will go crazy. Other than that and the other items listed, you should ignore all the buzzing and spinning that s part of the endless, cacophonous babble.

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we established a relationship It was obvious to me that both of these customers were capable of tremendous growth Within eight years, the organization with the more nurturing, touchy-feely culture surpassed $40 million in revenue The Pattonesque competitor was the direct antithesis They seemed to break every tenet of what a modern growth company s culture should be I regularly saw employees in tears and watched a phone ripped out of the wall during one of the owner s frequent tirades This organization reached a very profitable $25 million in revenue in the same period You would be hard pressed to tell Mr Patton that he didn t do it right.

What s my point There are many cultures that can lead to growth, but all things being equal, it s a heck of a lot more pleasant for everyone concerned if you adopt a culture that sees people as people, not as human capital THE IMPORTANCE OF MYTHOLOGY Any company that has been around for a while has plenty of stories to tell In the early years especially, private businesses go through all kinds of challenges and experience all kinds of mishaps and thrills These stories become part of the company mythology and are key to defining who they are Every culture in the world has its mythology, lore, and legends that speak to who they are Many times, these stories teach us values, reinforce our ideals, or highlight struggles we must all overcome Other times, they give us a historical grounding in where we came from.

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