Category: Competitive Advantage & Differentiation

Investing Errors Come From Psychology, Not Information — Charlie Munger (2 of 2)

“A latticework of mental models” describes ways that Charlie Munger sees intelligence and wisdom. Mental models describe more than simple IQ, or Intelligence Quotient. Munger Avoids Investing Errors by Many Mental Models Munger believes a wise person is best served by 80 to 90 mental… Continue reading

The Business Cycle Also Rises – Hard-Earned Wisdom of Business Cycles

A business cycle increase the degree of difficulty in managing a business.  Watching (and experiencing) some unconnected sectors undergoing big cycles right now has me thinking about cycles.  Here are some big ones currently: a) Silicon Valley start-up valuations declining after a 7-8 year boom,… Continue reading

Network of Experts to Support Greybull Companies

“There are always more smart people outside your company than inside your company.” We are utilizing this idea in our strategy to assist our portfolio companies in Greybull Stewardship.  Network of Experts As we think about the future of Greybull, we have been thinking about… Continue reading

Cheers to the Greybull All-Star Management Teams and CEOs

I love the companies Greybull Stewardship has invested with and I love working with the all-star management teams running those businesses.  As we turn the corner into 2016, those are my overwhelming thoughts and feelings.  Greybull All-Star Management Teams Here are some of the reasons why:… Continue reading

Rational Investing vs Irrational Entrepreneurship (Admirable Idealism)

When asked at this year’s meeting, “What matters most at Berkshire Hathaway?”  Charlie Munger and Warren Buffett quickly agreed: “Seeing things the way they are.” Rational As Opposed to Smart Warren and Charlie then went to one of their favorite topics about how the success of… Continue reading

Podcast Interview about Competitive Advantage, Berkshire Hathaway, & Recurring Revenue

I recently enjoyed being interviewed for a podcast with Jock Purtle of Digital Exits where we discuss what Warren Buffett and Charlie Munger would invest in today — if they were young. Hint: competitive advantages, recurring revenue. What would Buffett and Munger invest in if… Continue reading

The Mirage and False Hope of an “Exit Strategy”

At best, an exit strategy becomes overrated and a waste of breath.  At worst, an exit strategy becomes a destructive mirage of certainty and false hope.  I realize that it is conventional wisdom for every entrepreneur to specify their exit strategy.  I have even heard… Continue reading

A Business Strategy to Capture More Value

The best entrepreneurs and business owners know that capturing value, not just creating value, is critical to success. The phrase “capturing value” is not meant to convey a zero-sum concept of one person capturing what another person loses. It is a way of saying that… Continue reading

2014 Berkshire Hathaway Annual Letter – Buffett and Munger Observations From 50 Years

Saturday, Feb. 28, 2015, Berkshire Hathaway posted their 2014 Berkshire Hathaway annual letter. As this is the 50th anniversary of Warren Buffett taking control of Berkshire, this letter included two extra sections. Both Buffett and Vice Chairman Charlie Munger wrote about their observations about the first fifty… Continue reading

Simple Strategy Lessons: Better before cheaper. Revenue before costs.

Sometimes the best ideas and best advice are the most simple. When I read the following article a while back, I loved it. And believed it. And continue to believe it. Michael Raynor and Mumtaz Ahmed from Deloitte Consulting performed a study that began with 25,000 companies… Continue reading