I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.
Interpretation
Invest in businesses that can succeed regardless of the management, as eventually poor management will occur.
Warren Buffett's quote emphasizes the importance of investing in fundamentally strong businesses that are resilient to poor leadership. He implies that the stability and robustness of a company should be such that its success is not solely dependent on the intelligence or capabilities of its leaders, which highlights the need for sound business models that can endure various challenges.
In practice
During a financial seminar, I quoted Warren Buffett to encourage attendees to focus on strong business models.
I have no views as to where it will be, but the one thing I can tell you is it won't do anything between now and then except look at you. Whereas, you know, Coca-Cola (KO) will be making money, and I think Wells Fargo (WFC) will be making a lot of money and there will be a lot - and it's a lot - it's a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that.
If the world couldn't see your results, would you rather be thought of as the world's greatest investor but in reality have the world's worst record? Or be thought of as the world's worst investor when you were actually the best?
Cash never makes us happy, but it's better to have the money burning a hole in Berkshire's pocket than resting comfortably in someone else's.
I think you should read everything you can. In my case, by the age of 10, I'd read every book in the Omaha public library about investing, some twice. _x000D_ You need to fill your mind with various competing thoughts and decide which make sense.
The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer.
Oneβs objective should be to get it right, get it quick, get it out and get it over. Your problem wonβt improve with age.
The ability to bounce back after a setback is the single most important trait an entrepreneurial venture can possess.
The success [of Mary Kay Inc.] is much, much deeper than just dollars and cents and buildings and assets. The real success of our Company is measured to me in the lives that have been touched and given hope.
A familiar name on its own, however, does not carry its bearer far unless the talent is there, and the will to work.
When I was 12 years old, I was just horrible. My parents were ashamed to watch my matches. I would play on a court at the local club and they would watch from the balcony. They would scream, 'Be quiet' to me and I would scream back, 'Go and have a drink. Leave me alone.' Then we would drive home in a very quiet car. No one speaking to each other.
You know, I never looked down the road and said, 'Hey look, one day, the Hall of Fame.' It's always about playing each and every game 100 percent and I thank my teammates for getting me into the Hall because football is a team sport, not an individual sport.
In our business, things look like a failure until they're not. It's pretty binary transitions.
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