Stick with big, “easy” decisions and eschew activity
In our search for new stand-alone businesses, the key qualities we seek are 1 durable competitive strengths; 2 able and high-grade management; 3 good returns on the net tangible assets required to operate the business; 4 opportunities for internal growth at attractive returns; and, finally, 5 a sensible purchase price.
What investors then need instead is an ability to both disregard mob fears or enthusiasms and to focus on a few simple fundamentals. A willingness to look unimaginative for a sustained period – or even to look foolish – is also essential.
The company and the man are inseparable.Tony Nicely and GEICO, 2018