Quiet Radiance of #NoMowMay & Buffet's Way: Embracing Patience and Long-term= The Permaculture of Prosperity: Designing a Life in Harmony with Nature

Welcome to #FixTheWorld or #GiveUp newsletter No. 54!

Let's dig into links between organic gardening and capitalism again this week, do share this newsletter with others: FixTheWorld.4Good.Space

Listen to this edition's theme song, one phrase of it seems like our legendary band Queen sang it.. wow, honoured (or Law Suit follows, please sue Suno, not me!)!?

Last week's Earth Day edition carried a somber tone (reality can hit hard, as it should!), so this time, I'm determined to lift spirits and inspire action. Let's dive into the uplifting world of NoMowMay and beyond. (Last year's #NoMowMay suggestions still valid!)

I challenge you to embrace NoMowing your lawn this month, and take it further with Multi-sown, No-Dig, and permaculture planting. Picture this: a pot filled with a variety of plants, thriving together, easily replanted year after year with a bit of care. Check out this GIF of me replanting a small brown turkey fig tree surrounded by flowers and mint.

Now, let's talk about Warren Buffett's ingenious strategy of not paying dividends but using insurance floats to support his portfolio companies. This approach has made Berkshire Hathaway a powerhouse, with Buffett wielding incredible influence in the market. Despite his immense power, Buffett remains humble and approachable, a rarity among billionaires.

In this article, I'll draw parallels between permaculture gardening and Warren's investment strategy, showcasing the beauty of both approaches. Let's explore the synergy between nurturing the earth and building wealth for a better future.

TLDR:

• Warren Buffett's approach to investing and Berkshire Hathaway can be seen as an analogy for organic gardening practices like no-dig, multi-sowing, and permaculture.
• Key principles like value investing, company analysis, transparency, and diversification align with permaculture practices like observing nature, using renewable resources, and creating self-regulating systems.
• Just as Buffett carefully selects undervalued companies he understands, organic gardeners carefully choose plants and methods suited to their environment.
• NoMowMay aligns with leaving garden areas undisturbed, allowing plants and soil life to thrive, much like Buffett avoids disrupting successful businesses.

Key Bullet Points:

• Berkshire Hathaway as a Permaculture Garden
• Value Investing and Selecting Quality Companies
• Transparency and Self-Regulation
• Diversification and Renewable Resources
• NoMowMay and Minimal Interference
• Patience, Long-term Thinking, and Yields
• Learning from Nature and Markets
• Managing Risk through Observation

The Buffett Way: Embracing Patience and Long-term Thinking for a Flourishing Life

In the world of business and investing, few names carry as much weight and respect as Warren Buffett, the legendary CEO of Berkshire Hathaway. His principles of value investing, company analysis, and long-term thinking have guided him to immense success over the years. Interestingly, these principles can be seen as an analogy for the organic gardening practices of no-dig, multi-sowing, and permaculture.

Berkshire Hathaway as a Permaculture Garden

At the heart of this analogy lies the concept of Berkshire Hathaway as a carefully curated permaculture garden. Each company in its portfolio can be likened to a plant that has been meticulously selected and nurtured to thrive in a sustainable, self-regulating system.

Value Investing and Selecting Quality Companies/ plants

Buffett's philosophy of value investing involves identifying and investing in undervalued companies with strong fundamentals and growth potential. This approach mirrors the organic gardener's practice of carefully selecting high-quality seeds or seedlings that are well-suited to the local environment and capable of thriving with minimal intervention.

Discounted stocks are like out of fashioned heirloom cultivars

Just as Buffett seeks out companies that are trading at a discount relative to their intrinsic value, organic gardeners often choose heirloom varieties or open-pollinated seeds that have been passed down through generations, preserving their genetic diversity and adaptability. By cultivating these resilient plants, gardeners can ensure a bountiful harvest while minimizing the need for synthetic inputs or intensive labor.

Feedback loop: Transparency and Self-Regulation

One of Buffett's guiding principles is a preference for transparent companies that are open about their challenges and willing to admit their mistakes. This aligns with the permaculture principle of self-regulation and accepting feedback, which encourages gardeners to observe their environment closely, identify areas for improvement, and make adjustments accordingly.

Autonomy: once invested/planted, let them grow, organically

In a well-designed permaculture system, each element plays a role in supporting the overall health and balance of the ecosystem. Similarly, Buffett's approach involves allowing the companies within Berkshire Hathaway to operate with a degree of autonomy while providing guidance and resources as needed, much like a gardener nurturing their plants while respecting their natural growth patterns.

Diversification and Renewable Resources : interplanting

Diversification has been a cornerstone of Berkshire Hathaway's success, with investments spanning various sectors and industries. This principle mirrors the permaculture practice of cultivating a diverse array of plants, each contributing to the overall resilience and productivity of the system.

By incorporating a range of crop types, including vegetables, fruits, herbs, and flowers, organic gardeners create a rich tapestry of life that supports beneficial insects, pollinators, and soil microorganisms. This diversity not only enhances the ecosystem's ability to withstand challenges but also provides a continuous yield of renewable resources for the gardener.

NoMowMay and Minimal Interference

The concept of NoMowMay, which encourages homeowners to leave their lawns unmowed during the month of May, aligns beautifully with Buffett's approach of minimal interference in successful businesses. By allowing the grass and wildflowers to grow naturally, gardeners create a haven for pollinators and other wildlife, fostering biodiversity and ecological balance.

Similarly, Buffett's preference for buying entire companies or significant stakes in them reflects his belief in allowing capable management teams to operate with minimal disruption. Just as NoMowMay embraces the natural rhythm of the ecosystem, Buffett recognises the value in letting successful businesses flourish without unnecessary intervention.

Think And ACT Long

Patience, Long-term Thinking, and Yields Both investing and organic gardening require patience and a long-term perspective. Buffett's "buy and hold" strategy, where he acquires businesses with the intention of holding them indefinitely, mirrors the organic gardener's commitment to nurturing their ecosystem over many seasons.

In a no-dig garden, for instance, the gardener builds fertile soil by layering organic matter on the surface, allowing the soil life to gradually incorporate it into the earth. This process takes time, but it ultimately leads to a rich, living soil that supports abundant yields year after year.

Similarly, Buffett's approach to investing involves identifying companies with strong fundamentals and allowing them to grow and compound their value over time. By avoiding short-term thinking and remaining focused on long-term growth, both the investor and the gardener can reap the rewards of their patience and foresight.

Learning from Nature and Markets

At the heart of both organic gardening and value investing lies a deep respect for the lessons that nature and markets can teach us. Organic gardeners observe and learn from the intricate relationships and patterns found in natural ecosystems, adapting their practices to work in harmony with these systems.

Similarly, successful investors like Buffett study market trends, company financials, and industry dynamics, seeking to identify opportunities and mitigate risks through careful analysis and observation. This willingness to learn from the complexities of the natural world and the financial markets is a hallmark of both disciplines.

Managing Risk through Observation

While organic gardening and investing may seem worlds apart, both disciplines share a common thread in their approach to risk management. Organic gardeners mitigate risks by carefully observing their environment, identifying potential threats such as pests or diseases, and taking proactive measures to address them through sustainable practices like companion planting or introducing beneficial insects.

In the investing realm, Buffett's focus on thorough company analysis and understanding the businesses he invests in serves as a risk management strategy. By carefully evaluating a company's financial health, competitive position, and management team, Buffett and his team can make informed decisions and minimize potential pitfalls.

Just as organic gardeners learn to read the signs of an imbalance in their ecosystem, savvy investors like Buffett are attuned to market signals and shifts that could impact their investments. This shared emphasis on observation, analysis, and proactive risk management underscores the parallels between these seemingly disparate endeavors.

Conclusion

Our present world economy's challenges may stem from the relentless pursuit of growth and the pressure to go public or sell companies.

Long term Conglomerates are often not valued as highly as tech firms, but many family dynasties worldwide are in fact doing just that, think and act long (many great businesses like LVMH, but less ruthless)

High-valuation public companies that report quarterly earnings can feel compelled to make short-term decisions (hence it was such great news when Paul Polman refused to report quarterly earnings for Unilever). This can make it difficult to practice the long-term, patient approach that Warren Buffett takes with Berkshire Hathaway.

Similarly, industrial agriculture's focus on maximum growth through chemical inputs like fertilizers can lead to issues like nutrient runoff and overexploitation of local water resources, potentially threatening the sustainability of major population centers.

In contrast, NoMowMay and the beauty of untamed lawns exemplify principles of minimal interference, self-regulation, and allowing natural systems to flourish when nurtured with wisdom and care. Whether we are tending a garden or managing an investment portfolio, these principles remind us of the profound interconnectedness between business, nature, and our long-term well-being on this planet.

As we celebrate NoMowMay, let us reflect on the broader lessons it offers – lessons that invite us to embrace patience, diversity, and a respect for the self-regulating rhythms of the natural world. By aligning our personal and professional endeavours with these principles, we can cultivate a more sustainable, resilient, and interconnected approach to life and success.

I hope this FixTheWorld.4Good.Space post inspire you think and act long, why not? It is of course up to you, what do you think?

Let's internalise NoMowMay and Warren's strategy into our personal, societal and business lives.

Some great books recommendations below for you should you be interested in value investing:

1972 The Limits to Growth by D. Meadows Club of Rome, free Graeme Maxton

The Education of a Value Investor: My Transformative Quest for Wealth, Wisdom, and Enlightenment by Guy Spier

The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness by Morgan Housel

Truth is that we have limited number of small to medium size companies these days due to non sexy nature (not unicorn) ??, we need to create a culture to promote doing sustainable businesses that don’t scam people and maybe create more local, regional or societal co-ops? Tessa Clarke ??