I Don’t know why but this one was difficult for me to understand.
In simple word, Warren Buffett is trying to tell us that every company is different. There is no need to copy anyone and more importantly there are times when it is totally acceptable if you just sit and don’t take any new developments. Simple.
The big thing that Warren Buffett need to highlight it is there are some companies in which management always need to perform. Because if there is inactivity, they will not receive salary for that Month.
Peter Lynch mentioned in his book that best business is most boring businesses. Hardly Any change. Somewhat Warren Buffett is also telling Same.
There are many companies which started their life as Small and with very small resources but they grow big and Large that whole world know them. Nike, Amazon, Microsoft, Google, INFOSYS. In fact Birkshire Hathaway was also Small Textile company. When Warren Buffett bought First Share of the company, the price of stock was $7. So starting small is not issue. Everyone was Small. But they know that they are different. They was not trying to copy their competitors.
When Jeff bezzos was setting up His company, Cadabra, that was the name of Amazon that Time. There were many companies but all of them are not alive right now. Why? They are different.
There are many browsers but not everyone has the power like Google. If they Stop Their work for Five minutes, 300 seconds, traffic on Internet will fall to half. When they started the company hardly anyone was interested to invest in their company. Why? They are different.
I think best example of this Tenet is Apple. Steve Jobs was not in search for keeping his JOB. He was not trying to duplicate of any of his competitors like Microsoft, IBM.
Itstopedia, one of the best website for finance, explain it very correctly. Credit goes to the writer.
This tenet seeks out management teams that resist a ‘Lust for Activity’ and the lemming like duplication of competitor strategy and tactics. – Investopedia (Warren Buffett’s investing style )
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