Tag Archives: Berkshire Hathaway

Investing Errors Come From Psychology, Not Information — Howard Marks (1 of 2)

When two giants of investing, Charlie Munger and Howard Marks, emphasize a similar theme, it pays to take note.  It is interesting to me that they, and many other investors, eventually move well beyond the quantitative analysis of business to the “second level” of psychology,… Continue reading

Culture Eats Strategy for Lunch

The massage school where I am a co-owner, the National Holistic Institute, recently had our annual all staff gathering in Northern California.  It is a big investment, but also a critical culture investment to get everyone on the same page.  In a school, the interactions… Continue reading

Dodging Bullets Keys Investment Success

Great investors have skills to seize opportunities and get into good situations.  Equally as important can be the skill at “scrambling out of bad situations,” as Charlie Munger would say, or “dodging bullets” as it sometimes feels when helping companies solve challenges.  At the Berkshire meeting… 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

Portfolio Churn — Enemy of Investment Returns

Churn destroys investment return.  Strangely, traditional private equity builds itself to churn.  Churn reduces investment returns for several reasons such as transaction costs, business disruption, and the difference in tax rates between ordinary income and capital gains.  This last difference is the easiest to quantify as… Continue reading

Private Equity Trending Toward Longer Term Models Like Greybull Stewardship

Momentum is growing toward private equity structures with longer term time horizons and movement toward more “permanent capital” — structures that are more similar to Berkshire Hathaway and Greybull Stewardship (my private equity fund focused on companies with $1-3 million in profit). Blackstone private equity… Continue reading

Super Investor, Seth Klarman, on Lessons Learned from Buffett

Seth Klarman has a legendary hedge fund that you may not know, the Baupost Group.  His returns in that fund have been Buffett-like. He is a value investor . . . truly, not just someone who likes to say that word.  His insights are treasured,… Continue reading

Three More Lessons from Warren Buffett and Berkshire Hathaway

Two recent items helped me draw lessons for how I want to manage my investment firm, Greybull Stewardship.  The first is Warren Buffet’s memo that he sent last month to the managers of the 80 businesses of Berkshire, and the other is in the book,… Continue reading

Lessons From Hyatt Family Decisions on Selling Businesses

For many business owners, selling a business is both about the money and about finding the right home for their life’s work.  This was very true for the Hyatt family as they worked to sell family businesses over the last decade after the patriarch’s death.… Continue reading

Warren Buffett’s Strategy, Selling Your Business, and Other Topics in Podcast Interview

I was interviewed recently by a very good business broker, Jim Cumbee of the Tennessee Valley Group.  I have gotten to know Jim this year as we worked on a transaction and we had a fun discussion about several topics including: Lessons learned about selling… Continue reading