One of my main goals in business ownership is to build an anti-fragile portfolio of companies with my partners.
Having a permanent investment time horizon means that I need to make sure the businesses are around for the long-term to accomplish my objectives.
Having a permanent investment time horizon means that I need to make sure the businesses are around for the long-term to accomplish my objectives.
The best way I know how to do that is to make the companies as bulletproof as possible.
Here are some key ways I believe I can de-risk my outcome:
- Buy good companies in growing industries (tailwind effect)
Here are some key ways I believe I can de-risk my outcome:
- Buy good companies in growing industries (tailwind effect)
- Use prudent leverage at entry, and work to deleverage (while balancing with growth)
- Once deleveraged, hold or be ready to inject enough cash to sustain a prolonged downturn and to capitalize on innovative or compelling growth initiatives
- Once deleveraged, hold or be ready to inject enough cash to sustain a prolonged downturn and to capitalize on innovative or compelling growth initiatives
- Eliminate single points of failure (employees, vendors, customers, systems) as much as possible
In many industries, to be a long-term winner you simply need to be a long-term survivor, so that's the goal.
In many industries, to be a long-term winner you simply need to be a long-term survivor, so that's the goal.
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