Warren Buffett, one of the richest men in the world, who is roughly worth $87 billion, often talks about the concept of “circle of competence”. Though he is an investor, this concept applies beyond investing. He says:
“What an investor needs is the ability to correctly evaluate selected businesses. Note that word “selected”: You don’t have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.”
To explain to this concept further, he gives an example of one of his business managers who was a poorly educated immigrant, but she built the largest and probably the finest furniture store in Nebraska.
“I couldn’t have given her $200 million worth of Berkshire Hathaway stock when I bought the business because she doesn’t understand stock. She understands cash. She understands furniture. She understands real estate. She doesn’t understand stocks, so she doesn’t have anything to do with them. If you deal with her in what I would call her circle of competence… She is going to buy 5,000 end tables this afternoon (if the price is right). She is going to buy 20 different carpets in odd lots, and everything else like that because she understands carpet.”
Specializing in Metal Marking machine distribution
What is your carpet? What is the business that you understand? What lies in your circle of competence? Well, distributing metal marking machines is our niche!
Purshotam started its journey before India gained its independence and after over 7 decades of being at the top of our game,we still continue to be the leading distributor of metal marking machines, especially the French SIC marking machines.
Why? The answer is simple. We understand our products and our market. Probably better than any of our competitors, which gives us an unfair advantage, and that is why we have been able to lead our industry.
Charlie Munger, Buffett’s business partner, believes:
“You have to figure out what your own aptitudes are. If you play games where other people have the aptitudes and you don’t, you’re going to lose. And that’s as close to certain as any prediction that you can make. You have to figure out where you’ve got an edge. And you’ve got to play within your own circle of competence.
If you want to be the best tennis player in the world, you may start out trying and soon find out that it’s hopeless-that other people blow right by you. However, if you want to become the best plumbing contractor in Bemidji, that is probably doable by two-thirds of you. It takes a will. It takes the intelligence. But after a while, you’d gradually know all about the plumbing business in Bemidji and master the art. That is an attainable objective, given enough discipline. And people who could never win a chess tournament or stand in centre court in a respectable tennis tournament can rise quite high in life by slowly developing a circle of competence-which results partly from what they were born with and partly from what they slowly develop through work.”
The secret to Purshotam’s success
We often get asked, what is our secret? What is our trick? How are we able to sustain our momentum and strengthen our presence in the metal marking machine distribution game?
The advantage that we have in distributing metal marking machines is not merely based on our aptitude but also decades of experience, which translates into better sales, higher customer satisfaction, and consistent performance. Through our competence, we have evolved into being the world’s largest distributor of SIC marking machines.
It is no secret and definitely not a trick. It is years of dedication in providing superior quality products, services, and support to your clients.
We understand our niche. We know our area of expertise. We prioritize the needs of our clients and ensure that all our marking machines:
- Have relatively lower maintenance cost and low consumable usage
- Provide good flexibility and variety in marking, which can be easily controlled by software
- Can be easily integrated on production lines to increase productivity
At Purshotam, our philosophy goes beyond the cliché idea of “doing what you are passionate about”. We believe in “doing what we are passionate about and doing it the best”. This allows us to serve our clients better.
By knowing our circle of competence, which primarily includes metal marking machines along with shop floor automation, autoloader gantry solutions, and gauging solutions, we not only increase our chances of success in this competitive market, but we are also able to significantly improve the ROI of our clients. Irrespective of the scale and scope of your company, we will have a product that will enhance your productivity.
As we have defined our sphere of competence, we have also defined our goals.Purshotam strives to keep learning and adapting to the ever-evolving market. We embrace the latest tools and technology to bring the best solutions to our clients, providing immense value to them.Our products are customer-oriented and service is customer-centric. We lay an emphasis on integrity and ethics. We do not just focus on selling you a product once, we work hard to give you a business experience which will eventually become the foundation of our long-lasting relationship.
Moving on from a conventional customer-distributor relationship, we hope to create a sustainable partnership, where we assist you in fulfilling your business objectives and achieve the results that you desire. We specialize in our circle of competence so that you never have to worry about it.
What are you waiting for? Do not settle for mediocrity while you can choose Purshotam, a company with an impressive heritage, a company which has witnessed the market evolve and has continued to be at the top for several decades.
For more information about Purshotam and our offerings, reach out to us now!
