Takeaway #13: Slow & Steady or Flash-free

**A jeep — doesn’t he make enough ends?

A genius like him should drive a Benz

Well he believes clothes don’t make the man or a car

And the man still makes five hundred grand

Every six months yo the kid is no dunce***

Chubb Rock     I’m the Man I Gotta Get Mine Yo!  (1992)

 

  There is no doubt that everyone wants to be in the business that is sexy.  It sounds great at a dinner party.  People like the shiny stuff.  Unfortunately some of us make widgets or even the parts that keep the widget running smoothly.  The widget parts manufacturer is making great earning per share but may be tempted to get into the sexy widget movie business, even though the numbers do not add up.  Stay in the widget biz.  The widget brought you to the dance; don’t fall for the flashy product.

   The company has a decent market capitalization should we buy another entity that will raise our profile?  No.  Should we spend on the trophy building?  No.  Take a look at the stark Wal-mart headquarters inArkansasand tell me if the money was spent on real estate and lobby furniture.  Should we put on an over-the-top road show for the institutional investors?  You put on the show and you will be struggling quarter-after-quarter to meet analyst numbers that exceed guidance and expectations.

When Chubb Rock wrote this people were getting car jacked in hustler-mobiles or pulled over by profiling police officers.  The herb in the Jeep was getting home safely, night after night.  He is the predecessor to the “Millionaire Next Door” profile.  The low-key profile is the best.

 

BPM TAKEAWAY#13:

  • NO FLASH, JUST CASH

  • SLOW AND STEADY WINS THE RACE