What’s the price of creating a company with good, steady revenue growth and profitability? Boredom (potenially).
Here are a few quotes from Roger Lowenstein’s book on Warren Buffet and what it was like working for him when he was a board member at the Washington Post (he was calling the shots alongside Katharine Graham, the CEO).
- “It was the antithesis of an entrepreneurial company.”
- “Mark Meagher, the Post’s president, wrote a long letter when he resigned, urging that the Post go private – since, as he saw it, there was no point in such a stodgy company holding public capital.”
- “Richard Simmons, who replaced Meagher, dryly remarked after yet another proposal had been killed, “The sage of Omaha has spoken again.”
- “It is striking how little the Post did do during Buffett’s tenure on the board.”
- “Meanwhile, its revenue grew at a solid but unspectacular rate of 12 percent a year. The only dramatic change was in the level of profitability.”
Keep in mind: the Washington Post, because it’s an influential newspaper, is default an exciting place to work. Daily deadlines, breaking news, impact, etc. But once it got under Buffett’s control and became more financially successful…it was much more boring.
Also keep in mind: Buffett’s~$10m position turned into north of a billion.
There are a million ways to build a successful company (however success is defined as). Get big fast, like OpenAI. Grow a family dynasty over 100 years. Stay a small mom and pop business.
But there’s something that’s alluring about what Warren Buffett does. His businesses are on the more predictable side. He has this “aw schucks” attitude that makes things seem attainable to the average joe. He explains things simply.
As an entrepreneur, there are times I want what he has. Or want to do what he’s done. He’s the man!
But…I don’t think we think enough about the day to day work to achieve what he did and how it fits into our own tastes.
For example, boredom. That’s what it can feel like to run (or work) at a company that has Buffet-esque values.
Which, by the way, is 100% fine and can be awesome! I would kill to have his track record. And I think you can argue that to be the best at anything (sports, art, etc), it requires decades of tedious, boring work.
But I think reading from an employee’s perspective is a really helpful perspective on what it takes to create Buffet-like company. Its not for everyone, that’s for sure! And also is a great reminder to me, someone who’s speciality is starting and the more exciting parts of business, that greatness might occasionally require accepting tedious and boring.
