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Author:
Brendan Ford
The Oracle of Omaha (Warren Buffett) famously said, "Be fearful when others are greedy and greedy when others are fearful". The quote couldn't be more applicable than in the times we find ourselves in. As we move toward the end of another financial year, I felt it was appropriate to reflect. To share a story that set the scene for what the smart money did and is now doing in a post-COVID economy.
In March/April of 2020, I spent endless hours on the phone like many business owners did, shoring up clients, suppliers and strategies to ride out what was going to be the zombie apocalypse. As I rang through clients, assuring them that we had the resources, both in capital and operations, to support them through the tumultuous times ahead, I noticed a clear difference in approaches.
The smart money was measured, poised and considered. They valued human capital and did whatever they could to keep good staff and operations in place. They often said, "when we come out of the other side of this thing", referring to being ready for the next chapter. They had a long-term vision. More telling was when Scomo and P Lowe cranked up the money machine; they were opportunistic but restrained. They weren't greedy.
The other side of the equation could only be described as 'shitting the bed'. Sack everyone, turn everything off. Any form of resolve flew out the window and was immediately replaced with pure panic. Ironically when the stimulus started, those took the money, claimed the credit, and assumed the goods times would never end. It's me, not the market they proclaimed. Essentially the opposite of what Mr Buffet prescribed.
The Oracle of Omaha (Warren Buffett) famously said, "Be fearful when others are greedy and greedy when others are fearful". The quote couldn't be more applicable than in the times we find ourselves in. As we move toward the end of another financial year, I felt it was appropriate to reflect. To share a story that set the scene for what the smart money did and is now doing in a post-COVID economy.
In March/April of 2020, I spent endless hours on the phone like many business owners did, shoring up clients, suppliers and strategies to ride out what was going to be the zombie apocalypse. As I rang through clients, assuring them that we had the resources, both in capital and operations, to support them through the tumultuous times ahead, I noticed a clear difference in approaches.
The smart money was measured, poised and considered. They valued human capital and did whatever they could to keep good staff and operations in place. They often said, "when we come out of the other side of this thing", referring to being ready for the next chapter. They had a long-term vision. More telling was when Scomo and P Lowe cranked up the money machine; they were opportunistic but restrained. They weren't greedy.
The other side of the equation could only be described as 'shitting the bed'. Sack everyone, turn everything off. Any form of resolve flew out the window and was immediately replaced with pure panic. Ironically when the stimulus started, those took the money, claimed the credit, and assumed the goods times would never end. It's me, not the market they proclaimed. Essentially the opposite of what Mr Buffet prescribed.
Right or wrong. Good or bad. Time will tell. Well, that time is now. Fast forward a couple of years and it's not the free-loving summer of 69' anymore. It's the economy that the smart money was waiting for. It's 2023/24. And it's time to get greedy. And we're seeing it in droves, at least with our clients. Whilst many shut the doors, call the administrators, blame the RBA and wonder where things went wrong. Those with a long-term vision, a growth mindset and the maturity to capitalise are investing in their businesses. They're being greedy while others are fearful.
We don't all have to have been in business since 1951 like Mr Buffet, but we can definitely learn from those before us. Just as 2020 forced every business owner to make some hard decisions. 2023/24 will require exactly the same investment of thought. Except this time, there's no fire truck coming to put the fire out. Our advice is simple. Listen to an expert. Lean on their advice. Trust someone who has been through a few winters. We're now in a market where value matters. Your product or service has to deliver real value. Ironically, it was the value that the Oracle has been investing in all these years and with a net worth of $117 billion, he seemed to do ok from it.
Right or wrong. Good or bad. Time will tell. Well, that time is now. Fast forward a couple of years and it's not the free-loving summer of 69' anymore. It's the economy that the smart money was waiting for. It's 2023/24. And it's time to get greedy. And we're seeing it in droves, at least with our clients. Whilst many shut the doors, call the administrators, blame the RBA and wonder where things went wrong. Those with a long-term vision, a growth mindset and the maturity to capitalise are investing in their businesses. They're being greedy while others are fearful.
We don't all have to have been in business since 1951 like Mr Buffet, but we can definitely learn from those before us. Just as 2020 forced every business owner to make some hard decisions. 2023/24 will require exactly the same investment of thought. Except this time, there's no fire truck coming to put the fire out. Our advice is simple. Listen to an expert. Lean on their advice. Trust someone who has been through a few winters. We're now in a market where value matters. Your product or service has to deliver real value. Ironically, it was the value that the Oracle has been investing in all these years and with a net worth of $117 billion, he seemed to do ok from it.
Right or wrong. Good or bad. Time will tell. Well, that time is now. Fast forward a couple of years and it's not the free-loving summer of 69' anymore. It's the economy that the smart money was waiting for. It's 2023/24. And it's time to get greedy. And we're seeing it in droves, at least with our clients. Whilst many shut the doors, call the administrators, blame the RBA and wonder where things went wrong. Those with a long-term vision, a growth mindset and the maturity to capitalise are investing in their businesses. They're being greedy while others are fearful.
We don't all have to have been in business since 1951 like Mr Buffet, but we can definitely learn from those before us. Just as 2020 forced every business owner to make some hard decisions. 2023/24 will require exactly the same investment of thought. Except this time, there's no fire truck coming to put the fire out. Our advice is simple. Listen to an expert. Lean on their advice. Trust someone who has been through a few winters. We're now in a market where value matters. Your product or service has to deliver real value. Ironically, it was the value that the Oracle has been investing in all these years and with a net worth of $117 billion, he seemed to do ok from it.
