(3) a continually-enlarging commitment of our resources to investment in partially-owned, nonoperated businesses; accounting rules dictate that a major part of our pro-rata share of earnings from such businesses must be…
(3) a continually-enlarging commitment of our resources to investment in partially-owned, nonoperated businesses; accounting rules dictate that a major part of our pro-rata share of earnings from such businesses must be…
Adam Smith:The Wealth of Nations, Book II, Chapter II, Paragraph 757
Adam Smith《The Wealth of Nations》· Book II, Chapter II · Investing
Over and above the expenses which are common to every branch of trade, such as the expense of house-rent, the wages of servants, clerks, accountants, etc. the expenses peculiar to a bank consist chiefly in two articles: first, in the expense of keeping at all times in its coffers, for answering the occasional demands of the holders of its notes, a large sum of money, of which it loses the interest; and, secondly, in the expense of replenishing those coffers as fast as they are emptied by answering such occasional demands.
It was only a few years ago that we told you that the operating earnings/equity capital percentage, with proper allowance for a few other variables, was the most important yardstick of single-year managerial performance…
(3) a continually-enlarging commitment of our resources to investment in partially-owned, nonoperated businesses; accounting rules dictate that a major part of our pro-rata share of earnings from such businesses must be…
A long-lived company keeps its mission fixed while its strategy changes.
Context
In the same letter, Ma tied Alibaba's 102-year ambition to an unchanging mission: making it easy to do business anywhere. He presented longevity as a matter of organizational renewal rather than a fixed business model. The mission is the constant; strategies and leaders are expected to change.
Today's question
If your company had to last 102 years, which of today's decisions would survive that time scale?
(3) a continually-enlarging commitment of our resources to investment in partially-owned, nonoperated businesses; accounting rules dictate that a major part of our pro-rata share of earnings from such businesses must be…