2.5 • 884 Ratings
🗓️ 3 May 2024
⏱️ 11 minutes
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| 0:00.0 | So I buy businesses based on balance sheets and I build businesses based on dreams. |
| 0:06.9 | So for instance, these businesses that you're going out to buy right now when you buy them you don't want to put |
| 0:13.4 | into the price of the business your hustle and drive that's yours the business |
| 0:18.2 | doesn't get that right yeah oh yeah yeah of course yeah so I think a lot of times what happens is when you start thinking, |
| 0:25.5 | when you think at the buy, this business could be a hundred million dollar |
| 0:28.4 | business, you're already biasing yourself |
| 0:31.3 | that this business could be that big. |
| 0:33.5 | It's like, no, this is what the business is. |
| 0:35.4 | This is how we look at it. |
| 0:36.6 | We buy businesses that hit these valuation metrics. |
| 0:40.4 | And then we see if they could scale in a big way. |
| 0:44.0 | But you know, I told Lala and Alex Formosie the biggest problem they'd have |
| 0:48.0 | when they started their portfolio because we're Buds |
| 0:51.0 | was going to be that they would do too small of deals, they'd do too many of them, |
| 0:56.8 | and they'd take two minority of a share. And what happened... |
| 1:00.8 | That's what I was going to touch on. And if you've noticed, they said that's exactly what happened. And if you've noticed, they said that's exactly what happened. |
| 1:05.0 | You know, they're like, we started off with businesses that we're doing 3 million. |
| 1:08.0 | Now we're at businesses that are doing 10 million. |
| 1:10.0 | We started off doing really small micro equity deals. |
| 1:12.0 | Now we're at looking for a bigger piece of it because if you're We started off doing really small micro equity deals. |
| 1:12.6 | Now we're looking for a bigger piece of it because if you're good as an investor and |
| 1:17.1 | if you're good as a business builder, you want to own a significant portion of any business |
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