HH What We Can Learn From Jamie Dimon And Warren Buffett

Dimon and Buffett were very clear that they were NOT against quarterly and annual reporting. They still believe this is an essential aspect in providing transparency to investors as to their recent performance.

What We Can Learn As Investors

There is an old business parable called "The Bucket Carrier and the Pipeline Builder", that perfectly illustrates the lesson we can learn from this editorial.

The parable goes like this. Years ago, there was a small village located some distance from a river. The villagers needed water from the river for drinking, for cooking, for bathing... etc. Two villagers with entrepreneurial spirit decided to attack and solve the problem for their village.

The first villager though to himself: "This will be easy! I can carry two buckets of water back and forth, and charge customers for the water. I can do over 100 buckets a day at a coin each! I will make 100 coins a day and be wealthy!" Sure enough, that day he gathered his buckets and started lugging water from the river, earnings his coins and feeling pretty good about himself.

The second villager, though, took some time to think about the problem. "I could do the same thing", she thought, "but there might be a way I could get water to the village more cheaply, reliably, and with less work." She settled on building a small pipeline from the river to the village, spending her money and time to start constructing it.

The first villager thought this was crazy and laughed to himself. "You are SPENDING money, not making it!" he laughed. He continued to merrily lug his buckets and collect his cash.

Weeks and months went by. After a time, though, the pipeline was finally completed and water rushed into the town's well. The second villager, with a steady and automatic supply of water, decided to charge just half a coin per bucket. Overjoyed, the villagers flocked to her well, eagerly paying the same for double the amount of water! And now, they didn't have to wait for the buckets to be delivered, could bathe every day instead of once a week, could afford enough water for more livestock... Life was so much better!

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Disclosure: Steve owns no stocks referenced here.

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