Walt Disney gained worldwide fame with the animated film ‘Steamboat Willie,’ but Disney’s first studio went bankrupt. By the mid-1930s, he had produced over 400 animations, most of which suffered heavy losses. In 1938, Snow White and the Seven Dwarfs made $8 million in just the first half—more than ten times the earnings of other films. Meanwhile, with this animation, the company paid overdue wages to its employees and recovered the losses it had sustained. An unusual event that changes everything is called a “tail event.” 40% of publicly listed companies in the U.S. stock market lose nearly all their market capitalization 10 years after going public. Business and investing, after all, are based on probabilities. No one knows what the “tail event” will be. Therefore, to succeed, you need to try small, steady, many times with little impact, even if you fail. - Joseph’s “just my thoughts”
One of the most important essentials of business is cognitive dissonance resolution. When researching who watches the Ford Motor Company commercials the most, the results are not potential customers but purchased customers. They want to confirm that their decisions were right or to receive continuous support after their purchases. Because we can never go back to the past, getting confirmation and support from someone makes us easy and comfortable beyond our regrets. So the company's strategy should focus on repurchasing the existing customers, not the new ones. In many business cases, businessmen should avoid assumptions or predictions. We shouldn't run a business depending on our thoughts only. - Joseph's "just my thoughts