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johnnywat14

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Everything posted by johnnywat14

  1. I finally got around to reading the Netflix book (No Rules Rules) and would highly recommend it. There is no doubt that NFLX culture is unique and a big part of their success, although it is certainly not for everyone. The big question will be - is the culture enduring post-Reed or not? Also, thanks for the Chick-Fil-A video. It does seem like every time I leave their restaurant I always feel like it is just a much better experience than any other fast food or quick service experience.
  2. Yep Liberty's newsletter is what really got me thinking about how inefficient my current workflow is and how it needed to be improved. All the tools out there are a bit overwhelming.
  3. I feel like my research work flow is antiquated and inefficient. I am curious to know how others organize their process and hopefully will be able to use these learnings to modernize my process. Currently, I mostly use word/excel to manage my research. I have a folder for every company with individual word docs for things like company notes, earnings call notes, investment thesis, etc. in addition to excel models. For PDFs, I copy them to GoodReader where I highlight/annotate and then email myself the annotated file (saved in folder) and highlights, which I copy to a word doc. I also have individual word docs for things like book quotes, investment quotes, weekly investment journal, quarterly commentary brainstorming, etc. Everything is there it is just hard to find stuff since it is not searchable. I have dabbled with OneNote a bit, but haven't fully committed due to the learning curve. I also save article using Pocket to read later and highlight, but don't love it. With the current tools out there like OneNote, EverNote, Notion, Roam, Obsidian, etc. it seems like there might be a much better way to manage the process and make it more searchable intuitive. I would love to hear how others use these products and/or point me to any videos or articles that you feel are helpful. Thanks!
  4. I think this is spot on and an interesting way to frame it. Putting in place the correct inputs like the ones listed above is perhaps the way to give it the best chance of enduring past the founder or current leader. IMO, many of the examples I listed previously have these inputs and as a result have a unique culture. It does seem quite rare in practice, and I am always trying to find additional examples that I am unaware of. Certainly culture isn't the end all be all and can't save a bad business, but I view it more as an added cherry on top when I find a company that meets my other criteria. One of the best ways I have found to evaluate culture is to read annual letters to shareholders going as far back as possible. Look for consistency of message and how they discuss their customers and employees. I wish more companies had these. Netflix is probably a good example that I didn't think of. Reed sounds like he is staying for a while, but it will be interesting to see if the culture he created endures. I have never spent any time on BABA or Jack Ma, so I will add that to the list to read about. Thanks!
  5. SD - I completely agree that it is pretty rare in publicly listed companies. However, I disagree that it only lasts as long as the current strategic plan. Often it is perpetuated by a truly wonderful leader or "jockey" (think Iger at Disney) and can be fleeting once that leader leaves. But there are very real examples of unique culture characteristics that transcend the current leader. I would highlight Home Depot from Frank Blake to Craig Menear, Progressive from Glenn Renwick to Sue Griffith, Expeditors from Peter Rose to Jeff Musser, and Costco from Sinegal to Jelinek. These companies have a culture that has endured several leaders over much longer than 4 years and been through strategic changes along the way. Again, I do think this is quite rare and often is not enduring over the long term. Ideally, you find a truly special leader and he/she sticks around for a long time. When it does endure for a long period it can be pretty special. And because it is so rare as well as hard to analyze, it can be pretty valuable.
  6. Long time lurker, decided to finally make the jump and post about a topic that I find to be extremely important to long term investing but not discussed as often because it is more subjective and harder to understand - corporate culture. I tend to hold positions for a decade or longer, so in addition to finding advantaged businesses run by astute allocators of capital at reasonable prices, I have found that companies that truly excel over the long term often have a corporate culture that is different or unique compared to the vast majority of companies. Some characteristics that I believe could signal a unique culture would be (this list is certainly not exhaustive): Decentralized organization that fosters entrepreneurial thinking Shunning Wall Street's short term orientation and truly thinking like a long term owner of the business Going above and beyond to take care of your employees A customer-first mentality whereby you do what is right for the customer before worrying about shareholders Mission-driven, passionate leaders I am sure there are others I am blanking on. Companies that I believe have at least some of these characteristics are Home Depot, Progressive, Berkshire Hathaway, Charles Schwab, CarMax, Fastenal, O'Reilly, Expeditors, Disney, Amazon, Costco, Starbucks, and Satya Nadella's Microsoft. I am curious as to people's thoughts on (1) agree/disagree that culture is extremely important over the long term, (2) other cultural characteristics I am not thinking of, and (3) other companies that fit the mold of a unique corporate culture. Thanks!
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