Very nice article Gary and thank you for sharing. I think there is one statement in there that might benefit from some qualification.
"However, if that leader translates their greatness into enduring business characteristics, then the competitive advantage can become permanent (e.g. Steve Jobs and Apple)"
The 'if' here should come with a health warning. Jack Welch and GE looked like a great bet at the time of Jack's retirement. He seemed to have GE all set up to weather any storms. He himself was very confident in their success as he retired and, although the market was still suffering the .com slide, the general consensus was that GE would continue to be a good long-term investment. As it turns out, the moats were ephemeral and the succession plan was a disaster.
Even with the benefit of a seat at the boardroom table, reliably predicting how a business will fare following the replacement of a charismatic and strong leader seems doomed to failure.
Iger and Walt Disney Company has a similar ring to it, though we're on a new chapter there.
Great Comment. The lesser I feel one's comepetence, the more they should look for higher Margin of safety and diversify more. Often, we think we understand all the drivers impacting a business, only to find out we were blindsided.
Very nice article Gary and thank you for sharing. I think there is one statement in there that might benefit from some qualification.
"However, if that leader translates their greatness into enduring business characteristics, then the competitive advantage can become permanent (e.g. Steve Jobs and Apple)"
The 'if' here should come with a health warning. Jack Welch and GE looked like a great bet at the time of Jack's retirement. He seemed to have GE all set up to weather any storms. He himself was very confident in their success as he retired and, although the market was still suffering the .com slide, the general consensus was that GE would continue to be a good long-term investment. As it turns out, the moats were ephemeral and the succession plan was a disaster.
Even with the benefit of a seat at the boardroom table, reliably predicting how a business will fare following the replacement of a charismatic and strong leader seems doomed to failure.
Iger and Walt Disney Company has a similar ring to it, though we're on a new chapter there.
Great Comment. The lesser I feel one's comepetence, the more they should look for higher Margin of safety and diversify more. Often, we think we understand all the drivers impacting a business, only to find out we were blindsided.
Great piece. Thanks for putting it out there for us!