Exercising Patience and Entrepreneurship Through Economic Uncertainty
Team,
This year, we find ourselves in a turbulent business and economic environment. The past several months have proven very volatile, with inflation affecting every product and service, geopolitical uncertainty having far-reaching and likely long-term impacts, and central banks tightening monetary policies after years of easy money and fiscal stimulus. All of this creates uncertainty in our own personal lives, as well as within our companies.
As all of you navigate this tumultuous environment with your families, my hope is that you feel that our company leaders are doing everything we can to create stability and give you reason for optimism in your professional lives.
In our company’s history, we have repeatedly realized the greatest opportunities during and following times of the greatest challenges in the overall markets – something that Donald Sull coined as “the upside of turbulence.” I know that good times are ahead, and in order to take advantage of the opportunities that will surely come from such times of turmoil, I am focused on two things: patience and liquidity.
During times of uncertainty, it is important that we be patient with how we deploy capital and thoughtful in how we focus our time and resources to ensure that we are concentrating on the opportunities that are of the highest value. We opportunistically deployed large amounts of capital in 2020 during a disruptive period. Now, in preparation for a possible economic downtown, we have built a significant stockpile of financial resources. By maintaining focus on these two things – patience and liquidity – I feel confident we are well positioned to take advantage of the exciting opportunities that will surely be on the horizon.
Thank you for your resilience, your teamwork, and the way you live out our Guiding Principles every day.
Geordy Johnson
President, The Johnson Group