Henry Ford had a lot of spunk. His famous quote, “Sir, you can have a Ford in any color you want, as long as it is black” is a great little encapsulation of his attitude towards business and life. Perhaps my favorite thing about him is that he embraced failure, but rejected the kind of negative attitudes that largely accompany failure.
When it comes to investing, I am not particularly interested in owning the kinds of companies that will be growing the fastest in good times. Rather, I am interested in owning the kinds of companies that will still be churning out profits without much of a hitch in an environment similar to The Great Recession economy of 2008-2009.
Originally posted 2013-07-02 15:44:20.
If you ever read Phil Fisher’s “5 Points” on the questions to ask yourself when looking for a stock to buy, you may remember Mr. Fisher’s point number two that you should ask yourself “Does the management have a determination to continue to develop products or processes that will still further increase total sales potentials of currently attractive product lines that have largely been exploited?”
The problem, of course, is that unless you are the wife or husband of a top executive, you probably have little indication ahead of time regarding whether a management team is sufficiently motivated to grow profits and take care of shareholders over time (as opposed to resting on its laurels). Seriously, how the hell are we supposed to know whether the CEO at Procter & Gamble is any more motivated than the CEO at Philip Morris International? It’s just rank speculation.
Originally posted 2013-07-02 05:03:53.
Thought you had a good day, today? Probably not as good as Bobby Bonilla.
On January 3rd, 2000, the New York Mets bought out the final year of Bobby Bonilla’s $5.9 million salary with the team.
The terms of the agreement? Every July 1st for 25 years (from 2011 through 2036), the New York Mets organization has to pay Bobby Bonilla $1,193,248.20 (and as an aside, this money counts towards the team’s payroll).
For Bobby Bonilla, that was a brilliant execution of delayed gratification principles.
Originally posted 2013-07-01 23:11:52.