The reason our clients hire us in the first place! If only I could tell them not to go into derivatives (another Buffett staple, by the way).
On experience: "There are certain things that cannot be adequately explained to a virgin either by words or pictures."
We are hired for our experience and practical knowledge, also known as the "battle scars." There is no substitute for experience.
On long term thinking: "Someone's sitting in the shade today because someone planted a tree a long time ago."
In fast-paced society, our focus naturally gets attracted to quick hits, the next earnings report, etc. We focus our business on the foundation of successful businesses and making intelligent decisions, as opposed to the eye candy.
On focus: "I tell college students, when you get to be my age, you will be successful if the people who you hope to have love you, do love you."
It’s motherhood and apple pie but we need a reminder at times that we are employed to fulfill the needs of our client, nothing more and nothing less. In our business, the client is looking for insight, experience-based lessons and action but we cannot get overly principled about the work.
On simplicity: "There seems to be some perverse human characteristic that likes to make easy things difficult."
Consistently focus on what matters most, say no a lot and make sure approaches and solutions are as simple as possible.
On having a set of symbiotic skills: "I am a better investor because I am a businessman, and a better businessman because I am an investor."
I'm a better strategy consultant because I've implemented the structures and systems I recommend; and I'm better at delivering that technology or operations change because I know what the business is trying to achieve by adopting them.
On staying proactive: "In the world of business, bad news often surfaces serially: You see a cockroach in your kitchen; as the days go by, you meet his relatives."
One of the benefits of experience is being able to build in positive routines and behaviors early and often. We can also identify bad habits early and make sure they are caught.
On value: "Forget what you know about buying fair businesses at wonderful prices; instead, buy wonderful businesses at fair prices."
In an era of vendor consolidation in our highly regulated industry, there are fewer "great deals" waiting for investment managers when it comes to technology and operations solutions or partners. It can be a hard lesson to learn but you get what you pay for. Finding partners that can align, listen and execute doesn't often come in the form of a bargain basement deal.
Thanks to Warren for the inspiration!