Synopses & Reviews
Every great business—whether it's a popular pizza restaurant or a baby formula maker—is built on the same core fundamentals. Warren Buffett figured out this universal business truth at an early age, and used it to turn an initial investment of $105,000 into a massive $40 billion fortune.
Building a Small Business that Warren Buffett Would Love takes this sound investment methodology and adapts it for small business owners looking to build, grow, or improve their own businesses.
Taking a long, hard look at Buffett's investment choices, business and investing guru Adam Brownlee identifies the common principles that link the many companies that populate Berkshire Hathaway's impressive portfolio. Highlighting the essentials that make these businesses great—from their strong earnings track records to their ability to successfully raise prices to match inflation—the book presents a road map for transforming your business using the same simple values that define these economic powerhouses.
Humorous and accessible, Building a Small Business that Warren Buffett Would Love looks at some of the world's most successful businesses—Coke, Hershey's, McDonald's, and many others—to demonstrate the sound logic and plain-to-see success of Buffett's way of doing business. Packed with essential information for start-ups and existing small businesses looking to take things to the next level, the book includes everything budding entrepreneurs need to know to build fundamentally sound small businesses that will not only survive but thrive in today's uncertain economic climate.
Warren Buffett redefined successful investing when he figured out exactly what makes a successful business tick and then put his money into those businesses—and only those businesses. It worked for him, and it can work for you. With this book in hand, you've taken the first step towards creating the kind of small business that not just Buffett, but any intelligent investor, will love.
Synopsis
The guide to making money the Warren Buffett wayThe book that presents the same fundamentals that Warren Buffet used to turn an initial $105,000 investment into a $40 billion fortune in a way the general reader can apply, Building A Small Business that Warren Buffett Would Love is a succinct, logical, and straightforward guide to financial success. Highlighting one simple message: that Warren Buffett successfully invests in great businesses with strong fundamentals, it argues that these fundamentals can be replicated in a small business to yield outstanding results. Offering a solution for people wanting to start a business to provide additional income in today's uncertain economy, and designed to help entrepreneurs build fundamentally sound, small businesses using Warren Buffett's business investment perspective, the book covers:
- An overview of Warren Buffett's investment methodology and how it applies to small businesses
- The details of the Buffett investment criteria—a consumer monopoly, strong earnings, low long term debt, and high ROE with the ability to reinvest earnings—and the application of these fundamentals to both start-up and existing small businesses
An approach to building a small business that applies the well respected principles of Warren Buffett, the book presents an exciting new look at the steps to success that have been proven trustworthy by one of the richest men in the world.
Synopsis
Warren Buffett's legendary fortune shows that he knows what makes a great business—now use his investment savvy to make the most of yoursThe small business owner's guide to making money the Warren Buffett way, Building a Small Business that Warren Buffett Would Love outlines and explains the core principles that define the businesses Berkshire Hathaway has embraced. Strong fundamentals make a strong business, and in this succinct, logical, and straightforward guide to financial success, business and investing expert Adam Brownlee shows how you can use Buffett's blueprint for investing to make your company the best it can be. Establishing a consumer monopoly, strong earnings, low long-term debt, and the ability to reinvest are just some of the markers of success that define the companies that Buffett loves, and this book shows how to apply these and other fundamentals to both start-ups and existing small businesses.
A unique new approach to building a small business that applies the well-respected investment principles of Warren Buffett, Building a Small Business that Warren Buffett Would Love shows you the steps to success that have been proven trustworthy time and time again by one of the richest men in the world.
About the Author
Adam Brownlee is the author of three books on business and investing. As the former Director of the Kentucky Small Business Development Center at Western Kentucky University, he has assisted hundreds of small business owners in making key decisions about the refinement and reformation of their businesses.
Table of Contents
Foreword ixAcknowledgments xi
Introduction Painting the Picture of the Ideal Business 1
Chapter 1 Buffett and the Fundamental Business Perspective 9
Chapter 2 The Importance of a Consumer Monopoly or Toll Bridge 19
Chapter 3 Strong, Consistent, and Growing Earnings 31
Chapter 4 Emphasizing a High Return on Equity 51
Chapter 5 Retained Earnings—The Fuel for the Engine of Compounding Returns 81
Chapter 6 The Tumor of Long-Term Debt 131
Chapter 7 Keeping Up with the Joneses 147
Chapter 8 With Healthy Net and Gross Margins 157
Chapter 9 Building a Small Business That Warren Buffett Would Love—Finishing the Landscape 167
Epilogue 175
Notes 185
About the Author 189
Index 191