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The Test of Time

September 19th

Time is the friend of the wonderful company, the enemy of the mediocre.

Warren Buffett

In business and investing, time is both a potent ally and a relentless adversary. It rewards the exceptional and punishes the mediocre without prejudice.

An exceptional company, with its steadfast management, innovative spirit, and robust business model, leverages time as an asset. It uses each moment to adapt, grow, and consolidate its strengths. Over time, these qualities are revealed, and their value increases, ultimately leading to significant returns for the patient investor.

On the other hand, time is less kind to a mediocre entity. Without the essential qualities that define an exceptional company, it struggles to sustain itself. Its flaws, hidden beneath the surface, gradually start to show. Over time, these weaknesses become evident, and the value of such a company may stagnate or diminish.

In investing, patience is paramount. Quick returns might be tempting, but only time can truly reveal the worth of an investment. So, as we navigate our investment journey, let us remember that time is the friend of the wonderful company, the enemy of the mediocre, and the ultimate test of an investor's wisdom.

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