When the 'long game' pays off

Interesting to read the most recent and excellent Pearson plc results.

Just over a decade ago Pearson (no relation) was a conglomerate of diverse businesses-from oil to books to fine china. Then Marjorie Scardino was recruited to replace the ‘old guard’ and re-shape it into a publishing, education and information powerhouse.

Pearson had frequently been criticised for underperformance, and the new direction of the business- ‘focussed’ by comparison- was held out to be the answer.

But the initial ride was bumpy.

Off-loading behemoth’s like Lazards whilst trying to acquire businesses that were either ‘content rich’, or relied heavily on guessing accurately the impact of the then immature Internet on future business, was no easy task. The dot.com boom and bust came and went, globalisation and education moved higher up the economic and social agendas, but the report card by the city scribblers continued to read ‘could do better’ year on year. However, Dame Marjorie held out that it would all come good and that her long-term strategy was not for the faint-hearted.

Now the latest set of results, just over a decade later bear her strategy out.

The share price continues to climb…with the underlying message that to ‘set the sails’ is preferable to ‘tacking with the wind’ and heeding the hecklers.