The test of time

Is a marriage that is one year old considered a success? And is a company that is one year old considered a success?

A company and a marriage are very similar. They both are built to last. Well, that is the idea.

In the "new economy" we have had a big wake-up call in the past few years as those organizations that were built to flip started to get pounded back down to Earth.

Think about this for a minute: Why do so many people always want to look up company share prices? No wonder there are so many services that offer live stock market numbers to your phone, fax, e-mail, TV, etc. If you are a stockbroker then it would make sense. But most of the world are not stockbrokers. And wait a minute, isn’t the world full of hypochondriacs too? You don't see everyone walking around with a thermometer or stethoscope? Sadly, in these modern times, the world appears to care more about stock prices than anything else (including our physical and mental well being). So, how long should one wait until selling those new hot tech stocks. A day? A week? A month? A year? Try a decade or two.

Go and read up on any real investor (I mean an old school investor, in his sixties or seventies or even eighties) and look at how long they have held onto their investments. A new company, like a new marriage, needs to stand the test of time, for it to showcase real substance. Anyone can put on a false smile and fake it for a short time. In my opinion this is what happened in the world with so many listed companies. The “fundamentals” these days are so sadly lacking and, more often than not, all it turns out to be is hype and more hype.

You can’t cheat nature. It seems we are learning this most obvious lesson the hard way.

Posted by Ronnie Apteker