Investing and business success takes time. Cutting corners might provide great results in the short term but it eventually backfires.
In this episode we explore a few companies who took shortcuts to build their business. Harold Geneen of ITT and Michael Pearson of Valeant rhymed a similar tune and met a similar demise.
Intelligent fanatic Henry Singleton’s acquisition spree was slightly different. He had the capacity to pivot when the acquisition strategy was no longer good and to repurchase his cheap shares. Yet in the long-term, Teledyne did not thrive after Singleton’s departure.
True intelligent fanatic led organizations such as Berkshire Hathaway and all 3G partner led companies (Garantia, AB InBev, Lojas Americanas, 3G Capital, etc.) did not utilize shortcuts. They have taken their time to build their organizations slowly. The result has been a strong organization that has a much higher probability of succeeding once the intelligent fanatic leaders have left.