When it comes to successful, sustainable businesses, slow and steady often wins the race. Sure, the headlines always go to the latest tech darling or high-flying Wall Street IPO. But look a little closer, and you’ll often find that the real value lies in the businesses that quietly chug along, year after year, weathering the storms and delivering reliable returns.
Isn’t this the Warren Buffett, Berkshire Hathaway philosophy? And it should be yours.
The Wall Street Journal recently reported, Honda just posted an 8.7% jump in quarterly profits, thanks to strong hybrid and motorcycle sales. Not sexy, but steady. And that reliability is a big part of why Honda remains one of the business world’s most respected brands.
The lesson here? When you’re looking to buy, sell, or invest in a business, don’t get dazzled by the razzle-dazzle. Focus on fundamentals like profit and cash flow, which are different, customer loyalty, and operational efficiency. Those may not grab headlines, but they’re the bedrock of long-term success.
After all, as we saw with that massive Windows crash, over-dependence on a single point of failure can spell disaster. Better to have a diversified, resilient business model – one that can keep humming along no matter what turbulence hits the market.
So take a page from Honda’s playbook. Slow and steady might not be flashy, but in the world of business, it’s the proven path to success.