Thread by @SmartSyncServ

We are going to tell you about 3 famous Capital Allocators in the world of business & investing.

All 3 of them:

~Started with almost 0 inheritance of capital

~Built a formidable empire from scratch

~Acquisitions of businesses have been an integral part of their strategy

They are Different

~In their style of acquisitions

~In industries they operate in

~In geographies they cater to

~In scale, and

~In how they communicate to their stakeholders

Imagine all 3 of them to be in the same room and they are asked one by one what is one key aspect of their acquisition which separates them from the rest:

Capital Allocator 1: "I never look for a perfect asset. If you are going to acquire a perfect asset then the whole world is

going to bid for it and it’s a very easy calculation to understand value and then you have to keep outbidding the next bidder. So there has to be some chink. That asymmetry which you can recognize that is there today — an inefficiency perhaps, or something wrong which you can

correct — that is where the value is created. In every acquisition of ours there was something that other bidders found wrong and that’s why they didn’t do it. And you know in many corporations nobody is willing to take the final decision. You need clearance from accounts,

you need clearance from legal and so on. If you asked a legal person is there a risk? Yes, there is a risk. But you have to evaluate the risk. Is it really going to materialize and if it does what would be the consequences? In MNCs nobody is willing to take a chance.

Instead, they always say we can't do it. And that's how we entered pharma industry."

Capital Allocator 2: "I found the first person’s story very interesting. I, however, follow a simple rule. I never call any company for acquisition. I patiently wait for them to call me.

That always gives me an upper hand.and that is what has made all the difference."

Capital Allocator 3: "I go one step further from the 2nd gentleman. Neither do I call companies for acquisitions nor do I wait for their calls. I am only focused on my customers.

When my customers call me and tell me that there is a company which is going to die, and if I do not buy it, my customers will have to suffer, then I come into the picture. This simple rule has worked wonders for me."

Isn't it fascinating?

If you are a long term investor in Indian market, you would have figured out who all 3 of them are.

If yes, share your answers in the comment section.

P.S. we have sourced parts of the above story from publicly available information.

We will share the source in due course.