What type of work can best teach you what makes a company (generalized) successful for informed investing?
I guess this is with respect to Buffet's investment style.
Consulting probably? If so, what type specifically?
I know there isn't one right answer, but input would be appreciated. Thanks!
I think "Flexible Plan Investments" It sounds too good to be true.
The failure rate of start-up businesses is very high compared to established businesses with a history of successful operations. Business failure may be the result of a poor business plan or economic factors beyond the business owners’ control.
How would consulting help you become a better investor? Just because you learn what makes a good business (if you even learn this somehow via consulting) doesn't mean you'll make a good investor.
Warren Buffett didn't start out knowing what made businesses successful. He was familiar with a few businesses ie insurance and through years and years of studying, learning from other investors, business leaders, and his own failures, and constantly thinking about his investments, he refined his skillset to become who he is today. And even then, knowing how to spot good businesses sometimes, it's an entirely different problem to know whether it's a good investment and what you can do with it. There's no one job or one thing you can do to become an informed investor - that's an overly naive idea. The best thing you can do is invest and learn from successful investors for years and years.
I'll take some heat for this (considering the crowd I've encountered on WSO lately) but I would say Operations/Supply Chain Management.
Corporations, big and small live and die by how they execute their processes and deliver goods. Most people on WSO like to shit on Operations but imagine if those guys stopped showing up for work? Imagine if you had a group of people responsible for making sure the back-end system successfully executed trades, completely screw up and crash the system or fail to spot inconsistencies?
Take this into an O&G company. What if you didn't conduct quality checks and drilled in an area only to have your hydrocarbons leak everywhere?
The above examples would be terrible for any business and result in unnecessary expenses and potential lawsuits.
In short, if you understand how to connect the dots, how products start at Point A and end up at Point C, how variables such as a strike at the Port of Houston affects your ability to ship a product to customers outside the US it will give you a much better understanding of the business.
Sure Finance, Accounting, Banking, Engineering are important and play a role but Operations/Supply Chain are what keeps a company going.
Want to know why Apple is such a damn good company that Carl Ichan would sell his mother for? Want to know what world Tim Cook came from?
Operations/SCM...its what makes or breaks company's in today globalized world.
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