Last week Bill Jamieson in the Scotchmin reflected on the absence of a Warren Buffett in Scotchmanland. It was a philosophical and poignant piece – he’d been watching the BBC Documentary on the man and then shortly after had attended a Scottish Financial Enterprise dinner thing. It caused him to reflect on where our humorous, knowledgeable and shrewd billionaire was….where was our Warren McBuffett?
I’ve had similar poignant moments of reflection at various events over the past year, most notably wondering who we have in the Scottish VC/Angel world that could carry a crowd the way that Guy Kawasaki can (see earlier blog for a rather over emotional summary on that). So Bill’s column on “Where’s Warren” has stuck in my mind – which is just as well cos if I want to read it online I’ll need a premium subscription account with the Scotsman webpaper.
Today Warren Buffett came back up – I was at the Global Scot event in Glasgow and his name was referenced in questions and in answers as folk dug deep to validate their thoughts and opinions. I’d been to the last Global Scot event back in 2006 (I think) – it was excellent. And I’ve been at most of the recent Now Is The Time To Ask events – all excellent. All funded and organised by Scottish Enterprise – well done.
But today it wasn’t happening for me. Not enough Jam Doughnuts I suspect – perhaps I was looking for and hoping to find a Warren Buffett in the congregation. Having been spoiled by recent Scotch Enterprise events I was expecting the same but I came away (early) a bit deflated. It all sounded a bit too familiar, predictable and way too generic.
Clearly a huge effort had gone into pulling in the Global Scots and putting on a bit of a show. But something seemed to be missing. Although the various speakers and panels all knew their stuff I didn’t pick up any excitement from them, other than from Bob McDowell of Microsoft – though that was maybe something to do with the number 7.
So what was missing (apart from Warren)? Well I think….. and I hesitate to suggest this…. I think it was a lack of outrageous optimism. Not a lack of optimism you understand – but a lack of outrageous optimism. I think there was perhaps just a wee bit too much recognition of the challenges faced rather than the opportunities available. And that’s a Scottish thing…. isn’t it? But why is it a Scottish thing?
Well… Will Whitehorn of Virgin Galactic put his ET finger on it for me earlier in the day. It was an almost throw away remark that he made but it made such perfect sense. In an answer to “what are the credentials of the scots” he replied along the following lines….. “Scots have built a reputation of being financially astute and prudent but that does not sit well when investing in new start ups and technology – it’s a whole different risk profile”.
I’ve thought along similar lines to that before - but I have never ever characterised the entire nation as being a ”prudent banker” which seemed to be what Will was saying. Suddenly a lot of things made sense. We shouldn’t look at the Scots as being risk averse we should look at ourselves as being ”canny bankers”.
So if we accept (recent crunch cock ups aside) that we are “canny bankers” rather than being risk taking West Coast VCs does that help Scotland PLC? Well I reckon it does….Warren Buffett does not speculate (he claims), instead he invests over the long (very long) term, and he only invests in what he understands, and he invests a lot when he decides he has found something worthwhile . These are – I would propose – traits of any canny banker – and these are the same traits as Warren Buffett.
So what’s the point? Well maybe, just maybe Scottish Warren Buffetts are all around us. For a moment lets forget about VC exits in 5 years at desired multiples of 100 to justify investments and instead consider building businesses that produce dividends, steady growth and longevity. Seems to work for Warren – albeit that he is $ backed by his healthly insurance businesses…… but then so is Scotland.
Maybe we stop trying to be Silicon Valley, it seems that our prudent Scottish banker mentality won’t allow it anyway. Instead let’s do the Warren Buffett thing – lets build solid, strong businesses that grow and generate profits over the long term. We “get that” – we are a nation of bankers so let’s do what we are good at. That doesn’t mean we don’t do technology or invest – it just means we do it in a steady “canny” way – let’s fund newcos over agreed long (very long) terms, lets be boring about early growth, lets build longevity. Lets make Scotland a Warren Buffett economy.
Not convinced? Need another example? Well look to The Royal Bank of Scotland – a solid reliable “canny” bank until it decided it wanted to be like the big boys. And now it is like the big boys – its shedding jobs and getting split up for fire wood. It went for the fast track model to success and it died on it’s (now our) ass. Cue one of the infinite number of Warren Buffett quotes – this one from circa 2003 and reasonably appropriate – “derivatives are financial weapons of mass destruction”.
So despite the lack of Jam Doughnuts at the end of my Global Scot day I am in reflective mood. I missed the end speaker (sorry Will) and I never planned to go to the Black Tie (Mrs O makes great Teas) but at least I have decided that we are all Warren Buffetts bairns. So time for a rebrand….. from Scotland to Warrenland, and GlobalScots to GlobalWarrens
Just one last thing…….could somebody tell Bill Jamieson that I’ve found the man he was looking for – he was here all along. That’s the trouble with playing Where’s Wally - he’s always in the last place you look.