We’ve all been there. Staring at a stock chart, paralyzed by questions: “Is it too expensive?” “Is this a ‘fair price’?” “What if I buy at the wrong time?”
We get so lost in the “what” and “when” that we forget the single most important question: “Who?”
It’s like trying to understand how the Sistine Chapel ceiling was painted. You could waste your life asking what brand of paint they used, how many people were on the staff, or what school they went to.
But all of that pales in comparison to the real answer. The secret wasn’t the paint; it was the artist. The only question that mattered was: “Are you Michelangelo?”
This is the most important, and most overlooked, secret in investing. We spend all our time analyzing the “paint”: the quarterly earnings, the P/E ratio, the daily news.
But true, life-changing wealth isn’t built on finding the perfect paint. It’s built on finding a “Michelangelo”, a great leader, a brilliant capital allocator, and letting them work their magic for decades.
🥗 The Crisis That Created a Masterpiece
Think about American Express in the 1960s. The company was nearly destroyed by a massive fraud known as the “Salad Oil Scandal.” A con man had tricked AmEx into backing loans for non-existent vats of salad oil.
The stock was toxic. Everyone panicked. It looked like the end.
But Warren Buffett saw something different. He didn’t see a scandal; he saw a “Michelangelo.” He saw a powerful, durable business run by smart people who could navigate the crisis. He bought the stock heavily while everyone else was selling in a panic.
Here’s the key: Even if you weren’t as brave as Buffett, just buying AmEx after the scandal and holding it for the next 50 years would have made you a fortune. Why? Because the company’s leaders (the “artists”) brilliantly reinvested the profits year after year, compounding the wealth of their shareholders.
They didn’t just survive the crisis; they used it to build a masterpiece.
📈 How to Spot an “Artist” (And Why You Should Look at Winners)
So, how do we find these “Michelangelos” in the wild? They leave clues.
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They Are Resilient: They’ve been around a long time. Look at a bottle of Johnnie Walker scotch. The label proudly states “Since 1820.” A company that has survived wars, recessions, and global pandemics is built differently.
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They Are “Anti-Social”: Great leaders don’t care about Wall Street’s “quarterly earnings” game. They are focused on a 10- or 20-year plan, not a 90-day one. They are willing to look “wrong” in the short term to be right in the long term.
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They Are Smarter Than You: As investors, our egos get in the way. Sometimes, the best move is to find a leader who is famously brilliant, even if you don’t understand every complex move they make. You don’t have to be the genius; you just have to bet on one.
Here’s a final, surprising tip. Most investors love digging in the “bargain bin” (the “new low” list).
Instead, try looking at the “new high” list first.
Why? Because that list shows you “where somebody is doing well.” It points you directly to the winners. It’s often the “Michelangelos” who are hitting new highs, because they are the ones actively creating value.
Stop asking if a stock is cheap. Start asking, “Is the CEO a Michelangelo?”
What’s one company you believe is run by a true “artist”? Let me know in the comments!
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