A
really interesting article by Gary Connolly in the Sunday Times of 23rd April
on Warren Buffet.
Loads of books have been written about the most successful
investor of all time and whose like will probably never be seen again. A
phenomenal investment genius whose performance has beaten all comers’ hands
down over his 58-year investment period.
As Gary points out, a $1 invested in the S&P500 would
have grown to $247 in this period. A $1 invested in Warren Buffet’s
Berkshire Hathaway would have grown to $37,875 over the same period.
One might expect Mr Buffet to lavish the praise on himself for
such an incredible, sustained performance. But the term he uses is:
“Our SATISFACTORY performance…”
Very justifiable self-praise, No. Loads of humility,
Yes.
Two factors have helped in achieving such incredible results.
First of all, picking some outstanding winners. Secondly, the benefit of
compounding over a period.
So, what relevance (if any) does this have for anyone in
business as we are never going to be picking the types of winners Mr Buffet has
done.
But we can benefit from both the immediate and the compound,
long-term effects of small, incremental gains in our day-to-day work that if
sustained can bring compounded gains over a period.
How are these achieved and what might be the compound effect?
Any of us humble enough to ask ourselves these questions
might start looking at the potential gains that could be achieved.
Have you looked in the right places and with the right plan
of action to see what’s achievable and sustainable?
I’d suspect with the right approach you might award yourself
a bit more than a satisfactory grade!
