Buffett wrote, “We did no ‘due diligence.’” On the basis of his prior experience, he concluded he “knew everything would be exactly as Wal-Mart said it would be—and it was.” A two-hour meeting and a handshake? With no due diligence! Think of the time, money, and effort saved, based on the simple fact that one party trusted the other to be true to their word. It’s an example of how trust can be a lever for turning modest effort into residual results.
