If you want to become an investor, you better become a long-term investor and a business investor first. Then, you can go from your business mentality to an investor mentality. It’s much easier to go that way.
Chaos is what you find in most businesses, financially speaking… Somehow Warren Buffett came up with the Gibraltar of American business… we liked the idea and tried to implement it.
I was very privileged in my life of taking the M.B.A. in Corporate Finance, I studied how the knowledge of great people like Warren Buffett learned, but I didn’t know it at that time.
I had a Business Administration degree and thought that was enough. However, my view of economics, the world, finances, and capital allocation grew immensely after I started thinking like a corporate financier.
There are a few options to take this kind of knowledge, which can be completely different from my approach. I rely on this knowledge because I was already a businessman, running sales in more than ten countries, and I thought that kind of knowledge would be needed sometime.
Some years passed, and we needed a restructuring; because we weren’t smart on capital allocation, we borrowed money and ended up buying assets that could not bring new money to the table. But then, the costs of the money went to the sky, and we needed to save the business from massive debts.
Then, it was the right time to use the knowledge I had learned and built; I led the restructuring that would take four years to be managed. Then in the third year, we could see a new horizon, then in the fourth year of restructuring, we got significant earnings again.
It’s not easy to learn or teach this kind of knowledge. But, it’s something that you need to be together on the practical side to understand how to manage capital and how important is your capital allocation decision or strategy.
Everything could seem to be well, then the nightmare begins, so you better be prepared, and that was what we did, so now we are prepared again and improving much of our Gibraltar…
To provide you with a way of learning it, if you don’t want to watch some of our classes, you could read this book to help you understand business… it’s an excellent start for the new and experienced businessman.
Right action brings excellent returns in life.
Keep walking the path.
Never to late to share this with our subscribers…so we also want to share this Owner’s manual that we believe can be helpful https://www.berkshirehathaway.com/owners.html