"Success is a journey, not a destination. The doing is often more important than the outcome.”
- Arthur Ashe
Good tennis is one of the best spectator sports. This week marked the end of the French Open, one of the four major tennis tournaments.
The biggest story from this year’s contest was that of Rafael “Rafe” Nadal. The 38-year-old Spanish tennis phenom has been a dominant force in tennis since his professional debut in 2001. This supremacy has especially been on display on the Parisian clay courts.
Dominance:
2 Olympic Gold Medals
14 Most French Open Championships
22 Major Championships
81 Consecutive wins on clay
112 French Open record (112-3)
209 Weeks ranked number 1 in the world
This impressive record has earned Nadal the honorary title, King of Clay. This French Open was rumored to be his last. In fact, the tournament was expected to host a celebration to honor him and commemorate his final appearance. But at the last moment, he declined, suggesting he might not be ready to hang up his pro tennis shoes just yet.
Nadal lost a hard-fought battle in the first round against Alexander Zverev.
Zverev would start the tournament with a win over one Spaniard, to lose in the final to another, Carlos Alcaraz.
Alcaraz, 21, spent his youth rushing home from school to watch Nadal on television. With his victory in Paris, Alcaraz became the youngest man to collect major championships on three surfaces: hard, clay, and grass.
Poetically, in just a few weeks, Alcaraz and Nadal, friends, countrymen, outstanding competitors, will once again meet on the clay courts of Paris. However, this time, they will share the same side of the net representing Spain as doubles partners in the 2024 Paris Olympics.
During the tournament, a commentator mentioned that Alcaraz was continuing down the path from “good to great” [great like Nadal]. I am sure we have all heard the term, but it reminded me of an old book. Shockingly, I was able to locate my copy of Good to Great by Jim Collins. Coincidentally, it was published the same year Nadal went pro, 2001.
I remembered that Collins had identified a brief list of companies (11) that he felt had moved from good to great. This book was released in the shadow of the dot-com market collapse and 2001 terror attacks.
The contrarian in me could not resist the urge to find the list of companies to see how they had fared since being identified by the author as great. Of the eleven companies listed, three are essentially out of business, and another three have faced significant lawsuits and hurdles.
I did some rough calculations, and including dividends, an equal investment in each of the companies would have increased almost fivefold since then – not bad.
In reviewing the marked pages and my notes in the margins, the much more interesting facet of the book turned out to be the factors Collins used to make his argument and how transferable they are to life and individual investing.
- Level 5 Leadership: Great companies have leaders who blend humility and willpower. Successful individual investors combine modesty with strong determination, prioritizing long-term success over short-term gains.
- First Who, Then What: Focus on getting the right people before setting a direction. We should prioritize surrounding ourselves with the best advisors to develop an overall strategy and direction.
- Confront the Brutal Facts: Facing the realities, however difficult, is crucial. Honest assessment and informed decisions are key to long-term success.
- The Hedgehog Concept: Focus on a simplified strategy. Complexity does not equal success.
- Culture of Discipline: Discipline in thought and action is essential. A consistent investment and planning lead to the best outcomes.
- The Flywheel and the Doom Loop: Building wealth is a gradual process. Consistent, incremental efforts will build momentum over time. Avoid erratic changes and quick fixes.
Collins concludes that greatness is a matter of conscious choice and discipline, rather than circumstances or luck. The principles outlined in the book are applicable beyond companies.
Tune in to the Olympic Men’s Tennis Doubles. Also, let me know if you have any questions about Alcaraz, Nadal, Collins, or anything else on your mind.
My Best,
Ryan