Jun 19, 2023·edited Aug 3, 2023Liked by Low Risk Rules
What a wonderful piece. This idea of investing in things that don't change is absurdly wise. In Terry Smith letters, I found he always mentions the average foundation date of companies, which, in some way, shows the endurance of their business models and industries.
this is the same principle adopted by Jeff Bezos on Amazon. In a interview he said:
“I very frequently get the question: ‘What’s going to change in the next 10 years?’ And that is a very interesting question; it’s a very common one. I almost never get the question: ‘What’s not going to change in the next 10 years?’
And I submit to you that that second question is actually the more important of the two — because you can build a business strategy around the things that are stable in time … In our retail business, we know that customers want low prices, and I know that’s going to be true 10 years from now. They want fast delivery; they want vast selection.
It’s impossible to imagine a future 10 years from now where a customer comes up and says, ‘Jeff I love Amazon; I just wish the prices were a little higher,’ [or] ‘I love Amazon; I just wish you’d deliver a little more slowly.’ Impossible. […] When you have something that you know is true, even over the long term, you can afford to put a lot of energy into it.”
Yes, great quote by Bezos and frankly, very surprising given how much he disrupted retail! But even his disruption was built on a foundation of the "things that don't change."
Wonderful answer and quote. Extremely accurate in relation to the article's topic. Don't have much to add at the moment, unfortunately, but I will be writing about what are these things that do not change. Something I read has been on my mind for a couple of days and attempts to answer that, just as Jeff did. Thank you for sharing Joao!
What a wonderful piece. This idea of investing in things that don't change is absurdly wise. In Terry Smith letters, I found he always mentions the average foundation date of companies, which, in some way, shows the endurance of their business models and industries.
Thank you for sharing, excellent article!
this is the same principle adopted by Jeff Bezos on Amazon. In a interview he said:
“I very frequently get the question: ‘What’s going to change in the next 10 years?’ And that is a very interesting question; it’s a very common one. I almost never get the question: ‘What’s not going to change in the next 10 years?’
And I submit to you that that second question is actually the more important of the two — because you can build a business strategy around the things that are stable in time … In our retail business, we know that customers want low prices, and I know that’s going to be true 10 years from now. They want fast delivery; they want vast selection.
It’s impossible to imagine a future 10 years from now where a customer comes up and says, ‘Jeff I love Amazon; I just wish the prices were a little higher,’ [or] ‘I love Amazon; I just wish you’d deliver a little more slowly.’ Impossible. […] When you have something that you know is true, even over the long term, you can afford to put a lot of energy into it.”
Yes, great quote by Bezos and frankly, very surprising given how much he disrupted retail! But even his disruption was built on a foundation of the "things that don't change."
Wonderful answer and quote. Extremely accurate in relation to the article's topic. Don't have much to add at the moment, unfortunately, but I will be writing about what are these things that do not change. Something I read has been on my mind for a couple of days and attempts to answer that, just as Jeff did. Thank you for sharing Joao!