Part 3/10:
Perhaps surprisingly, companies like 3M, Amazon, Costco, and Kohler Co. serve as prime examples of this concept. Kohler Co., for instance, built its wealth through the humble manufacture of toilets. Over decades, Kohler evolved from producing farm tools to generating billions of dollars in revenue from everyday products that most people take for granted.
The Four-Step Rule
Buffett and other savvy investors apply a straightforward four-step rule to spot these boring businesses:
They are rarely recognized for the work they do.
It’s challenging to muster excitement in starting such endeavors.
Demand and pricing for their services are easily predictable.
These businesses will continue to exist at least a decade into the future.