Lessons From the River
“Many men go fishing all of their lives without knowing that it is not fish they are after.” - Henry David Thoreau
I’ve escaped life’s normal bustle and have temporarily relocated to a beautiful river cabin. Surrounded by old, tall trees, with a light breeze, the wild sounds of the birds and bugs somehow cancel each other out. It takes no more than two seconds of staring out past the dock to have the water lend its clarity—and it’s undoubtedly much calmer than the waters discussed last week.
Thoreau was right—there is an absolute beauty in raw simplicity.
While appreciating my simple surroundings, I’ve been thinking, what makes a great business? Searching for a simple answer, my mind keeps wandering to the general stores I’ve come across on my past escapes. Each one is uniquely located in a different remote part of the American heartland, yet all share remarkable similarities and a familiar tale.
The General Store
It’s a bit rundown and rather unassuming from the outside—right next to the boat ramp, it looks like it might be as old as the river itself. Most people wouldn’t think there’s anything spectacular about this business. But I do.
If you walk inside, you’ll see that foodstuffs and supplies take up a fair amount of the shelving. Locally-sourced eggs and meat are for sale. They also carry fishing tackle and all the specialty live bait that is required to catch the big one. And to no surprise, the turnover in alcohol and tobacco products is off the charts—which makes sense, as they, along with the right bait, are required by most fishermen if they are going to catch the aforementioned big one.
Most critically is the unmistakable local bond. Residents and vacationers alike conveniently buy almost everything from the general store—a tradition probably spanning back generations. They have no interest in shopping anywhere else, and big-box competition is unwelcome in these parts. They will fight to protect the general store—one of their last remaining connections to simpler times.
Overall, this is a very simple business to understand.
Critics will push back and correctly point out that this isn’t a hot ‘compounder.’ There is absolutely nothing flashy about it. But so what?
The property has been paid off for decades, the business delivers value to the community, and its cashflows have been providing the owners their livelihood for generations. This place was around before I was born and will likely keep earning well after you and I are gone. Not every business has to be the next up-and-coming take-the-world-by-storm phenomenon to be great. Most that promise to be that don’t live up to the hype anyway, and this general store will outlive most of those too.
This only touches the surface, but the water is clear:
In business, investing, and life—simplicity and endurance are worth fishing for.
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Disclaimer
This publication’s content is for entertainment and educational purposes only. I am not a licensed investment professional. Nothing produced under the Invariant brand should be thought of as investment advice. Do your own research. All content is subject to interpretation.