Warren Buffett several decades
In his famous letter for the 1983 shareholders, the legendary investor Warren Buffettknown as “The Oracle of Omaha”, showed an unusual philosophy in the corporate world: Does not seek that anyone buy actions from Berkshire Hathawayhis company, but seeks to attract only adequate investors.
“We try to attract those who understand our operations, attitudes and expectations, and dissuade those who do not,” he wrote then. A countercultural statement in a market where the usual is to maximize the number of shareholders.
Quality on quantity
The reasoning behind this position is clear. For buffett, The quality of the shares of your company imports more than the quantity. Investors aligned with a long -term vision provide stability and avoid pressures for immediate results.
On the other hand, speculators focused on short -term movements can generate volatility, distort the assessment and condition strategic decision making.
Your communication strategy is designed to reinforce this filter. The annual letters, the refusal to divide actions and the sober tone of their ads do not seek mass popularity, but to function as signals that attract compromised owners and move away speculators.
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This self -select mechanism was fruits: More than 90% of Berkshire Hathaway’s shares are in the hands of investors who have been in the company for at least five yearsa rare stability level in Wall Street.
Warren Buffett’s philosophy contrasts with the current world of actions
In the era of “meme actions”, social networks and trading applications “gamified” the investment, the lesson of Warren Buffett charges even more relevance.
A shareholders dominated by short -term operators can push companies to pursue unsustainable earnings, increase volatility and distract the direction of their long -term strategy.
But the message does not apply only to the large traded conglomerates. It is also one Guide for entrepreneurs and executivessince it is essential to clearly communicate the company’s philosophy, avoid adding to speculative fashions, be selective with capital partners and educate investors about operational reality.
The better the shareholders understand the course of the business, the less likely they will be pressed for decisions that compromise their future. In this way, it is clear that, for Warren Buffett, The essential thing is not to have more investors, but the best.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
