I just listened to a good interview with Rob McEwen who is the founder and former CEO of GoldCorp. Here is the link to it.
Before entering the mining industry, McEwen spent 16 years in the investment industry running mutual funds, etc. Here is what he said about the mining industry after he entered it from the investment industry. It also applies to businesses in general.
“When I stepped into it [mining industry], I didn’t realize how slowly it moved … If you wanted to get out of a problem you couldn’t just turn around and sell it like you can in a market … like an investment, you can sell it, three days later, you get your money back … you might have taken a loss but it [problem] is finished.”
I think this quote is great and it is absolutely essential to being a good investor. Businesses move slowly, they encounter problems, they gain and lose customers, and all sorts of other things happen. This is reality. But the investment industry doesn’t like reality. Money managers do not like problems. All they care about is seeing prices of their stocks going up as quickly as possible so that they look good to their investors on a weekly, monthly, and quarterly basis.