My past life as a paperboy

I got my first job quite young thanks to the era I was born into.

There was no publicly used internet in the 1970s, so people’s informational options were limited. We expanded our understanding by directly interacting with each other in person or over the phone, or by reading books or newspapers.

It was that last form of communication that allowed me to make real money as a kid.

I was your quintessential paperboy at the tender age of 12. And let me tell you. It was a lot of work with a lot of responsibility.

Every day, I had to get up at 6:00 in the morning to handle the stacks of papers my employer would leave at my door. That was pretty much the extent of the company’s involvement in my operations.

The rest was up to me, starting with counting the papers and sorting them. If it was raining or snowing, I also had to bag each one to keep it safe and dry from the elements.

As paperboys went, I was pretty fortunate since I didn’t have to walk the whole route. My mom saved up to buy me a little scooter, and I rode that thing around the neighborhood, stopping at every subscriber’s house.

Subscribers who I knew by name.

I had to. They weren’t just addresses on a route for me. Part of my job was to know their preferences on how they wanted their papers delivered.

Most were okay with me just throwing their papers on the driveway or sticking them in the appropriate slots beneath the mailbox. But others wanted them placed on their doorsteps or inside their screens.

I also had to interact with them directly once every quarter to collect their dues. I got to know them that way, including whether they had pets, when they were going on vacation, whether they liked to garden…

The overall experience taught me so much, setting me up to be the investor I am today.

When you talk to other paperboys of the 1970s, 1980s, or even 1990s, they’ll generally tell you how impactful the experience was.

One big life lesson we all learned was the importance of responsibility. We knew that our customers relied on us no matter whether it was raining, snowing, or so muggy we were soaked with sweat by the time we finally got back home.

There was no shirking that responsibility even if we weren’t feeling well or were off on vacation. In those cases, we had to delegate the job to someone else. And if they didn’t get that job done right for whatever reason, we were the ones to pay.

We also learned to be respectful along the way. Not that the 1970s are known for extremely rude children, but paperboys had to go the extra mile.

Customer service was key to making tips, and so we had every incentive to make the route about the people instead of the company or ourselves alone. I can’t speak for all my fellow paperboys here, but I still imagine I wasn’t alone in learning that people have value in and of themselves.

Not just for the money they represented.

But here’s a big benefit of being a paperboy that isn’t talked about very much. Not as far as I’ve heard, anyway…

That job taught me how I should expect businesses to treat me as a customer.

I know the effort, much less anything extra, can be tough. However, I also know it’s doable. If I could do it as a 12-year-old boy, then a teenager, young adult, or adult can pull it off as well.

Can and should.

I’m not asking to be treated like a prince whenever I step into a Starbucks, let’s say. But I do look for pleasant tones of voice, clean facilities, my drinks done right – with quality ingredients – and, if a mistake does happen, proper steps taken to acknowledge the problem.

That’s what I’m paying for. So that’s what I should get.

No ifs, and, or buts about it.

It should be equally simple to expect quality service from the companies you consider buying into.

When you pay for shares of a business, you become a partial owner, not “just” a customer. And so you should get treated as such.

As a shareholder, I’m not asking for paperboy-level treatment. Management doesn’t need to know my name or what my personal preferences are.

But I do expect them to treat their collective shareholders with respect, making decisions that directly benefit them alongside their customers, employees, and management.

I’m more than happy for the latter two categories to be properly compensated, mind you – just as long as those salaries, bonuses, and other perks enhance their ability to make me money over the long-term.

This is a topic I could write about over and over again. But here’s a summary from the last book I published, REITs for Dummies:

This doesn’t mean they’re always buying or always selling. A company that’s obsessed with expansion is a company that doesn’t actually value its shareholders.

Really, it’s more focused on the short-term spotlight for its own benefit than any long-term investor value.

Management that prioritizes you prioritizes a healthy balance sheet, where growth and savings are both valued. They make opportune purchases of quality assets at fair value or better (i.e., bargain) prices.

If there are no assets that fit that description, they don’t buy, putting money aside for when worthwhile opportunities do present themselves. And they maintain that business mantra no matter the economic weather.

Like all those paperkids from yesteryear who knew they had to deliver the news rain or shine… the companies you invest in should prove themselves over and over again no matter what. Even when they do make mistakes, they should stand out by owning up to what happened and working hard to improve from there.

It can take a bit more time and effort to spot these kinds of companies, admittedly. You’ll have to do research not only into how their stock prices perform but also who’s behind that movement and how.

You’ll have to monitor them and what they’re doing, paying attention to their news releases, quarterly statements, and everything in between.

But don’t you think you’re worth the far-superior end results?

This former paperboy does. That’s why I run the services I do, demanding only the best not only from myself but the companies I recommend…

All for the good of the customer. You.

Happy SWAN investing!

Brad Thomas
Editor, The Wide Moat Daily

Price is what you pay. Value is what you get.

And these seven high-quality stocks are valued well.

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