Abelardo “Billy” Cortez l June 27, 2024 l Manila Bulletin
Some market observers feel the global economy remains resilient from the present global inflation issue. Other folks, however, that crunched the numbers think if there would be a global recession, it will be a mild one; it means some parts of the global economy will survive this kind of recession but some parts will remain struggling against this resistant global inflation.
If I may recall, during the financial crisis in 2008, a team of Harvard Business school students led by Max Anderson and Peter Escher wrote and produced what was then called as the MBA oath. That MBA oath quickly spread beyond Harvard, becoming a worldwide movement who cares about society as well as the bottom line.
The MBA oath begins this way, “As a manager, my purpose is to serve the greater good by bringing people and resources together to create value that no single individual can create for society over the long-term. As I reconcile the interests of different constituencies, I will face choices that are not easy for me and others…”
By the same token, Warren Buffett, chairman & CEO of Berkshire Hathaway and considered globally as one of the most successful investors of our time, might as well have written such similar MBA oath even if he did not belong to the MBA generation that produced it.
Along the line of Warren’s philosophy of running things are some promises mentioned in the MBA oath such as “I will safeguard the interests of my shareholders, coworkers, customers and the society in which we operate; I will manage my enterprise in good faith, guarding against decisions and behavior that advance my own narrow ambitions but harm the enterprise and societies it serves; I will take responsibility for my actions, and I will represent the performance and risks of my enterprise accurately and honestly.”
Warren Buffett, who was born on August 30, 1930 in Omaha, Nebraska, still continues to live in his modest home and office in Omaha, chalked up extraordinarily vast achievements and riches from the investment world, most of which he is handing back to society. As a result of his investment successes, Buffett is considered one of the best-known investors, if not the best in the world today. As of June 2024, his net worth is $135 billion, making him the tenth-richest person in the world.
The late US President John F. Kennedy once said, “Do not pray for easy lives. Pray to be stronger men. Do not pray for tasks equal to your powers. Pray for power equal to your tasks.” The point here is not for everyone to join a nonprofit, or to abandon life paths that may lead to riches. In other words, wherever you are, you work not just for the small dream of advancing yourself but also for the larger dream of making the world a better place.
If, as the old saying goes, the love of money is the root of all evil, then it’s pleasantly surprising or perhaps reassuring, as Stanley H. Brown, former senior editor of Forbes magazine, wrote “that we can turn to Warren Buffett whose legend has grown to the point where this very successful investor, who is world renowned for his modesty, is often cited by many financial people as a shining gold like the emerald city.”
Also think of it this way. There was no doubt in Warren’s mind when he once wrote to his Berkshire stockholders “to be suspicious of companies that trumpet earnings projections and growth expectations. Businesses seldom operate in a tranquil, no-surprise environment, and earnings simply don’t advance smoothly (except, of course in the offering books of investment bankers); managers that always promise to make numbers will at some point be tempted to make up the numbers.
J. Richard Munro, former chairman of Time also wrote, “I can tell you I have respect for Warren Buffett far beyond the business aspect. He is a legendary figure… what you see is what you get.”
That Warren Buffett has within him, by his very nature, the perfect combination of worthwhile qualities that you could ever wish to in an ideal investor would probably make it difficult to find his equal in the near future.
*** Atty. Abelardo “Billy” Cortez is formerly FINEX national president. He’s board director of IAFEI (International Association of Financial Executives Institutes) as well as independent board director at First Metro Investment Bank’s companies/subsidiaries (Metrobank Group). He’s an awardee of the Most Distinguished Bedan Alumnus in the field of banking and finance from San Beda College.
The views and opinions expressed above are those of the author and do not necessarily represent the views of FINEX. Photo from Pinterest. newtraderu.com