One Building Block Then Mosaic Outward

“The facts, as Tex saw them after leaving Howard Hughes, were these. There was room in the market which Hughes had tapped for at least one more blue chip company similarly oriented in advanced technology, especially in electronics. Most of the smaller electronics companies that had begun rushing into the field would ultimately be eliminated or ab- sorbed; thus he must think from the beginning in terms of an enterprise capable of extremely rapid growth toward blue ribbon status. Such an enterprise could be created by the purchase of one solid, profitable company for a building block toward internal growth. Other companies could be acquired if necessary in order to buy time, which would be of the essence, but only if they were integral to Tex's master plan. A final fact of which he was certain, after his experi- ence at Ford and Hughes, was that the cream of executives, scientists, and engineers must be hired as rapidly as possible, and could be, not through high salaries but through the inducement of generous participation in responsibility, and in the fruits of potential victory via stock options. In sum, the market was there, in electronics and related technologies, with a tremendous growth potential, for a man who knew what he was doing and how to move fast.”

“canny instinct. The real explanation is less mysterious and lies in the yardstick he applied: would the company in question fill a space in the mosaic of Litton's overall design? (Not: is it a smart business coup per se?)”