Craig and Andy discuss the importance of prioritization and the importance of capital efficiency. Craig explains that Warren Buffet cites Apple as an example of a capital-efficient company and wonders about whether his company is a capital-efficient company.
Andy says that often, people spend much of their time doing things that have no meaningful impact on their business. Craig asks if that’s because people don’t know what things do and don’t have an impact or whether it’s because they feel like they must do those things, even when they know those things are incorrect. Andy answers that it’s both, to some extent, and that people simply don’t evaluate deeply enough. He points out that the further away from the dollar you get, the more confident you have to be in the impact of an action to do it.
Craig discusses the difficulty of continuing to do the same thing that one has been doing and improving at it when it’s so easy to get distracted by something new and that it takes discipline to continue on the same path. Andy and Craig expand on that thought to point out that it’s still important not to keep doing the same things just because. You should keep doing things that are working, but not things that aren’t working just because other people do them or because someone says so.