Remember Montgomery Ward?

Philosopher George Santayana stated, “Those that cannot remember the past, are condemned to repeat it.” Over the years, the same message has been delivered in a variety of forms, all basically delivering the same inference that if we do not learn from history, we will, in all likelihood, repeat the experience.

Santayana’s philosophy or message is also applicable to investors. As a history enthusiast, I recognize that there are valuable lessons to be learned by observing companies that have succeeded and those that have failed. An example where we might seek some lessons from the past is in the failed company of Montgomery Ward.

Montgomery Ward originated in the 1860s by Chicago resident Aaron Montgomery Ward who created a niche in the retail industry by undercutting his rural competitors by means of mail order. This was a new concept, perhaps the forerunner of online ordering and further extended his “economic moat” by his creation and the first to use the slogan, “Satisfaction Guaranteed or Your Money Back.”