Revisiting the Roots: Why Companies Shouldn’t Forget What Got Them There

In today’s fast-paced business world, it’s easy for companies to get caught up in the pursuit of growth and expansion. However, it’s important for companies to remember the core values and principles that got them to where they are in the first place.

The recent decision by Vale to only take a 40% stake in its logistics business is a prime example of a company staying true to its roots. While infrastructure is important for any mining company, Vale recognizes that it doesn’t need to be fully responsible for every aspect of its operations. By focusing on what it does best and partnering with others for the rest, Vale is able to streamline its business and stay true to its core competencies.

Similarly, BHP Billiton and Rio Tinto have also made strategic decisions to shed assets and focus on their core businesses. This move not only allows them to become more efficient and profitable but also ensures that they stay true to the values that made them successful in the first place.

As investors, it’s important to pay attention to companies that are staying true to their roots and not getting caught up in the hype of expansion for the sake of expansion. By focusing on what made them successful in the first place, companies can ensure long-term sustainability and growth.

So, next time you’re considering investing in a company, remember to look for those that haven’t forgotten what got them there in the first place. Stay true to your core values and principles, and success will surely follow.