Few businesses plan to die (although most new businesses do). In that way, legal people (a company has legal rights and is subject to obligations) have the ultimate advantage over real people. Given that the most powerful investment tool is time, even modest real returns will compound into the gargantuan with a long enough time frame. The key is survival, even if the nature of the business changes dramatically. Nokia was founded as a pulp mill. Berkshire Hathaway (Warren Buffett’s Engine) started as a textile factory. Wells Fargo, the bank, started life along with American Express carrying deliveries in Stage Coaches. The two key elements besides what they do, that most real people tend not to think about, that are essential for the survival of legal people are (1) Capital, and (2) The Container. A good business is not a good business if it can’t survive. It doesn’t matter how good the idea, if it can’t pay its bills when they come due, or survive periods of disruption and destruction. If you want to build wealth, the key ingredient is capacity for time.
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