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The Power of Diligence

October 2nd

A line from Bobby Bare’s country song explains what too often happens with acquisitions: 'I’ve never gone to bed with an ugly woman, but I’ve sure woke up with a few.'

Warren Buffett

In investing, the initial allure of a company can be irresistible, with glossy presentations and promising projections. But it's essential to look past the surface, to delve into the company's fundamentals, and scrutinize their long-term viability.

The overnight sensation, the company that bursts onto the stage, is often the one teeming with risk and uncertainty. These are the investments that grab headlines, but they can lead us astray, causing us to chase momentary success over long-term sustainability.

Contrastingly, the quiet achiever, the company making steady progress, may not generate much excitement or attention at first. This is the investment that is easily overlooked in the flurry of market activity. Yet over time, these are the investments that yield consistent, reliable returns, forming the bedrock of a robust investment portfolio.

True investing isn't about chasing the next big thing, but about patient, diligent analysis. It's about understanding that an investment, much like a relationship, needs time to reveal its true nature. The quiet, consistent effort in investing is often the most rewarding.

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