If you can trust yourself when all men doubt you,

If you can trust yourself when all men doubt you,
But make allowance for their doubting too;
If you can wait and not be tired by waiting,
Or being lied about, don’t deal in lies,
Or being hated, don’t give way to hating,
And yet don’t look too good, nor talk too wise:

If you can dream—and not make dreams your master;
If you can think—and not make thoughts your aim;
If you can meet with Triumph and Disaster
And treat those two impostors just the same;
If you can bear to hear the truth you’ve spoken
Twisted by knaves to make a trap for fools,
Or watch the things you gave your life to, broken,
And stoop and build ’em up with worn-out tools:

If you can make one heap of all your winnings
And risk it on one turn of pitch-and-toss,
And lose, and start again at your beginnings
And never breathe a word about your loss;
If you can force your heart and nerve and sinew
To serve your turn long after they are gone,
And so hold on when there is nothing in you
Except the Will which says to them: ‘Hold on!’

If you can talk with crowds and keep your virtue,
Or walk with Kings—nor lose the common touch,
If neither foes nor loving friends can hurt you,
If all men count with you, but none too much;
If you can fill the unforgiving minute
With sixty seconds’ worth of distance run,
Yours is the Earth and everything that’s in it,
And—which is more—you’ll be a Man, my son!

"The Power of Perseverance and Self-Belief"

In the poem "If—" by Rudyard Kipling, the author emphasizes the importance of self-belief and perseverance in the face of doubt and adversity. These qualities are not only relevant in personal development but also in the world of investing. Warren Buffett, one of the most successful investors of all time, embodies these principles and has achieved remarkable returns through his long-term investment approach.

Buffett's investment strategy revolves around identifying high-quality companies with strong returns on capital and smart capital allocation policies. He understands that the most value is created in companies that see increasing returns on capital, as this indicates efficient use of invested capital. In addition, Buffett looks for companies with low valuations, as this enhances returns and creates value per share.

Many investors tend to focus solely on a company's growth potential, ignoring factors such as change in multiple and capital returns. However, Buffett recognizes the importance of considering all three engines of value creation: growth, change in multiple, and capital returns. By incorporating these factors into his investment decisions, Buffett has been able to consistently outperform the market.

Another key aspect of Buffett's investment philosophy is his disregard for narratives or growth stories. He is solely interested in finding undervalued businesses that make a lot of money relative to the money invested in them. This aligns with Kipling's message in "If—" to not be influenced by outside opinions or perceptions, but to trust oneself and make rational decisions.

Buffett's interest in Japanese and energy stocks, despite their lack of exciting narratives, can be attributed to their possession of the key ingredients found in quality investments: strong returns on capital, smart capital allocation, and low valuations. These common themes are what make a business good and undervalued. By recognizing these qualities, Buffett has been able to identify great investments and achieve remarkable success.

To apply the lessons from Buffett's investment strategy and Kipling's poem, here are three actionable pieces of advice:

1. Focus on the three engines of value creation: growth, change in multiple, and capital returns. Do not solely rely on growth potential but also consider factors such as valuation and capital allocation policies.

2. Ignore narratives and growth stories. Instead, look for undervalued businesses that generate high returns on capital and allocate their cash flow wisely.

3. Trust yourself and persevere in the face of doubt and adversity. Believe in your investment decisions and stay committed to your long-term strategy, even when others may doubt or criticize.

In conclusion, the combination of Buffett's investment strategy and Kipling's message in "If—" emphasizes the power of perseverance, self-belief, and rational decision-making in achieving success. By incorporating these principles into our investment approach, we can increase our chances of identifying high-quality investments and achieving remarkable returns. Remember, a good business isn't just about an exciting narrative or growth potential, but about making a lot of money relative to the money invested into it.