By John Garrett
“Long term, culture is enormous in terms of one business doing better than another.” Paul Black, WCM Investment Management
Culture counts. And sometimes it’s the most important competitive advantage a business has. And unlike other forms of competitive advantage, it can be almost impossible to replicate.
One fund manager that places a specific focus on culture is US investment firm WCM Investment Management (WCM). And it’s paid dividends. The fund manager has significantly outperformed its benchmark MSCI All-Country index for more than ten years, in fact by more than 5% pa.
“Seemingly small annual return differences, compounded over long periods of time, will result in significant differences in the amount of money at the end of the period. There can be a very large payoff from selecting a manager and a strategy that provide value above the index return over the long run.” William Browne
WCM was founded in 1976 and are based in Laguna Beach, California. Kurt Winrich and Paul Black are the two co-CEOs and their firm manages in excess of A$40bn in global equities.
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