Repeat What Works
“We’ve had enough good sense that when something is working well, we want to keep doing it…We’re demonstrating what might be called the fundamental algorithm of life: repeat what …
The Ultimate Marketing Hack is Telling the Truth
It’s 2016 and I’m at the Guinness Storehouse in Dublin on the third of eight floors. A video called Sapeurs plays–and I’m transfixed. It’s set in a bustling, impoverished town in the Congo. One man …
Return on Equity: The Most Important Business Metric You’re Not Using
Teenage Warren Buffett and a friend bought a broken down pinball machine for $25. The friend, a future engineer, fixed the machine while Buffett convinced local barber shop owner, Frank Erico to let …
The Empty Lake: Why We Buy Stuff We Don’t Use
Malibu delivered my wakesurf boat last week. It’s winter in Austin, but it’s 74 degrees outside and the water is comfortable with a $200 3/2 wetsuit. The lake–even on a beautiful sunny Sunday–is …
Best Finance Books for Entrepreneurs
“It’s been my experience in life if you just keep thinking and reading you don’t have to work.” – Charlie Munger Yesterday I ordered five finance books–928 total pages–for …
Grow Sales or Increase Profits? (Use the Paperclip Principle)
In 1996, the natural soda and juice company Hansen Beverage produced $357,000 in net income on $35.6 million in sales. In 1997, it introduced Hansen’s Energy Drink. Five years later, it launched a new …
The Best Investment Portfolio for Entrepreneurs
In 2015, I force-fed my business cash. $480,000 per year on office rent, $500,000 on a mobile app, $500,000 on a custom community, $1 million on a marketing campaign, much more hiring too many people. …
How to Invest $100,000 Today
Each entrepreneur I know who has sold a business for millions of dollars lost money investing. They buy real estate because they can see it; they invest in friends’ startups because they can talk to …
The Top 5 Mistakes Every Investor Makes
“Diversification is for the know-nothing investor.” — Charlie Munger Mistake One: Diversifying too much It was May 3rd, 2008. The two leaders, Warren Buffett and Charlie Munger–aged …
What is a Stock, and Why Should You Care?
“Although over the short term, Mr. Market may set stock prices based on emotion, over the long term, it is the value of the company that becomes most important to Mr. Market.” — Joel …