Maintaining even a small annual profit is advantageous in investing. Survival remains the most critical factor in business. People have sought the secret to Warren Buffett’s success, which is the power of compounding, but they overlook the real key: he has invested consistently for 75 years without pause. You can indeed succeed in your business endeavors through sheer survival; conversely, you cannot survive solely because of your success. Survival is only achievable if you have the strength to keep going, even with minimal returns. To do this, you must do what you love. Invest in stocks you like, and continue investing even if it is volatile. Next, you need to secure a “margin of safety.” Even a small margin ratio is crucial because a business can’t survive without margins. Frugal spending, flexible thinking, loose schedules—anything that helps during tough times—can all contribute to building a margin of safety. - Joseph’s “just my thoughts”
The phenomenon where an organization prioritizes self-interest over cooperation between departments is called the silo effect. A silo refers to a chimney-shaped grain storage warehouse, named for its high, stacked walls that isolate it from the outside. If someone controlled the opening by creating only one funnel-shaped outlet at the bottom of the storage room, they could monopolize the grain. This phenomenon often arises when there are ‘irreplaceable talented individuals’ in an organization, which presents a challenge for a boss desiring to develop such individuals. It undermines all the positive functions of the organization. Exceptional individuals organize their impressive performance so that the organization can sustain that performance even in their absence. Misusing talent can ruin a business. - Joseph’s “just my thoughts”