I think you are asking bad question though. If you manage to find next Teledyne and invest into it, you'll become very rich. There is no need to find the next BRK even if it would make you super rich. 8) Especially, since it's quite likely that there are Teledynes around, but quite possibly there won't be another BRK (as Munger has implied couple times). ;)
Munger may have been implying longevity, but I think not.
But as to your second point. You misread my question. Not how you find the next [fill in the blank] although that would be glorious, rather how to be a better investor, i.e. what did Buffett do for that extra 10 to 15% that enabled him to outclass Singleton. Once you are rational, apply yourself, have a circle of competence, etc. what else to do? Perhaps Buffett was/is more focused on this than Singleton was. Thus was willing to go through every publicly traded stock from A to Z, repeatedly.
I think longevity of the performance is part of the answer, but what gives Buffett's performance such longevity?
I would argue that Singleton was just as focused in the capital allocation game. His partner George Roberts was the one who focused on the day to day management. Teledyne had positions in insurance businesses and they had a slightly different version of Birkshire's "Float".
I think it comes down to Buffett's business reputation. Over the years he carefully crafted a "fair and friendly" capitalist image, and Birkshire a "happy business family". Stories like Rose Blumkin and a series of friendly business deals definitely helped. And reputation is another thing that compounds.
A lot of times he even gets good businesses presented to him. He was able to gain trust and owners don't have to worry about things like business relationships and family control issues after selling the company to him. Boards and companies aren't scrambling to install poison pills if Buffett buys up their shares.
On the other hand Singleton seemed to prefer to keep his cards close to his chest. His deal making ability was, i would argue, even better than Buffett's. He was very rational but lacked a bit of "human touch". His communication style with the public and even with his own investors were "delphic" and ambiguous. It was as if he was playing mind games with his own investors so that they would tender him teledyne's shares for cheap.
Knowing that, if you have a great family business you have to sell, would you rather sell it to Buffett or Singleton, if both were giving you similar offers? I'd just pick the one I trust more.
Buffett vs Singleton or how to be a better investor
in General Discussion
Posted
I think longevity of the performance is part of the answer, but what gives Buffett's performance such longevity?
I would argue that Singleton was just as focused in the capital allocation game. His partner George Roberts was the one who focused on the day to day management. Teledyne had positions in insurance businesses and they had a slightly different version of Birkshire's "Float".
I think it comes down to Buffett's business reputation. Over the years he carefully crafted a "fair and friendly" capitalist image, and Birkshire a "happy business family". Stories like Rose Blumkin and a series of friendly business deals definitely helped. And reputation is another thing that compounds.
A lot of times he even gets good businesses presented to him. He was able to gain trust and owners don't have to worry about things like business relationships and family control issues after selling the company to him. Boards and companies aren't scrambling to install poison pills if Buffett buys up their shares.
On the other hand Singleton seemed to prefer to keep his cards close to his chest. His deal making ability was, i would argue, even better than Buffett's. He was very rational but lacked a bit of "human touch". His communication style with the public and even with his own investors were "delphic" and ambiguous. It was as if he was playing mind games with his own investors so that they would tender him teledyne's shares for cheap.
Knowing that, if you have a great family business you have to sell, would you rather sell it to Buffett or Singleton, if both were giving you similar offers? I'd just pick the one I trust more.