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BatBoy for the Yankees
The BatBoy Eddie Bennett! In 1919 Bennett started his career as BatBoy for the Chicago White Sox baseball team. That year, the White Sox found themselves in the World Series. The following year, Mr. Bennett went with the Brooklyn Dodgers, and they won the championship.
In 1921, Eddie Bennett changed team again, changing district to become BatBoy for the New York Yankees. The latter won their first championship that same year, Mr. Bennett, wisely, did not change team again. He saw what was coming. The Yankees won five championships for the next following seven years.
Warren Buffett makes the link with the management of companies. In 1927, Eddie Bennett received 700 $US because the Yankees won the World Series. It was quite a salary income for four baseball games in 1927 (The Yankees swept the series). This amount was the average wage for one whole year, for the BatBoys.
The difference: Mr. Bennett worked with champions and collected the results. Indeed, he had probably understood that it was not the way in which he maintained the baseball bats that was important , what made the difference, was to be associated to "the crème de la crème"!
"At Berkshire, I regularly give the bat to several of the best hitters of the business world in the United States", concludes Mr. Buffett.
The President of Berkshire makes this amusing parallel, to highlight the quality of his leaders: I believe that there is also a parallel to make with an intelligent investment on the Stock Market.
When you invest on the Stock Market, you have a choice between an incredible amount of companies and leaders. Do you choose the best? Do you concentrate on "the crème de la crème"? Because when you fill your portfolio with the biggest builders, you literally give the bat to the champion hitters, who will, day after day, bat the ball out of the stadium for you.
It's much more profitable, in the long run, than to bet on a bunt hitter or pinch hitter (even acquired at a very low price), who are likely to be retired from bat strike after strike.