Investors buy or sell stocks based on short-term time horizons. We measure earnings against expectations. We turn thumbs up-or-down on acquisitions and management changes. We follow the drama of the action like spectators at a sporting event.
The best investments don't work that way. While there are swashbuckling CEOs who become their companies, so you bet the jockey and not the horse, the best long-term investments define their businesses simply, sometimes in just one word, then turn every energy into making that word manifest. It was the search for low costs that made Google the first leader in cloud computing. But Page was less interested in the technology than what it enabled, lower costs.
That story is easy to understand. Here is another one.
It's Red Hat (RHT). The word in this case is collaboration. I talked about it last month at SeekingAlphaand have been thinking about it more since.
Collaboration has driven Red Hat since its founding. Collaboration is a key value in open source, a natural consequence of letting customers see code and contribute to it.
Red Hat Enterprise Linux created a template.
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