Longevity

Longevity in life, business and investing is massively under-appreciated in my opinion in this short term focused constant stimuli world that we live in. By longevity I mean a long lived life or a long term track record of a business or investment or a career in a profession that one is passionate about. Longevity in life is driven by very simple things that people do and incorporate in their life as a habit and not some fancy diet or exercise regime. If you look at people who live longer, it’s mostly because they eat less and a healthy balanced diet, do regular exercise or some activity, are content with their life and spend their time on things they really like and have a good community around them.

Likewise if you observe sports persons who have built very successful careers, it's because they are totally passionate about that sport, have healthy eating habits and exercise to keep themselves fit but also incorporate things in their lifestyle or style of play that prolong their career. For example Messi has figured out how to play football by moving less than everyone else. He is mostly seen walking on the pitch, observing the game, plotting where the ball is, where his team mates are, where the opponents are and where the goal is and the moment he spots the opportunity he makes the move with lightning speed. This walking has helped him prolong his senior career to now 19 years and counting.

Similarly in business other than the overall focus, strategy and a thought through business model, great companies are built around doing small small things which improve their competitive advantage and give them the resilience to not only weather the tough times but also build the business that will last for decades if not centuries. Similarly in investing long term track records are built by following a focused strategy that works for you and being disciplined and patient. In our approach of buying good quality businesses run by good management and holding them for a long time, “doing nothing” for the most part is the key while continuously enhancing our knowledge as we wait and when the time comes and the market offers us the right price for a great investment, like Messi we move big. 

Another key attribute for longevity is the ability of companies or people to calibrate their pace of activity and optimize it so that it can be sustained for long periods of time. People burn out because they increase the pace of activity beyond the levels which their bodies and mind can sustain. Similarly for businesses that aim to grow very fast or improve profitability or market share too much, results in attracting competition and thus a need for a bigger moat which can sometimes be counterproductive because resources will be diverted to build a stronger moat. The ability of management to strike a balance between growth, market share & margins to sustain a healthy return on capital for long periods of time is the key.

Longevity by definition comes with time and is not easily built or replaceable and there are no shortcuts!. It signifies stability, credibility, reliability, sustainability, consistency & loyalty all attributes you would want in a partner, your loved ones, investments and employer.