The Unrepentant Recalcitrant

Lessons for an accidental entrepreneur

Archive for the tag “catalyst”

All Entrepreneurship is Value Investing

It shouldn’t be a surprise really when you think about it.

Value investing has been described as buying a dollar for fifty cents. Warren Buffet, speaks of investing as delaying the economic gratification of spending money today to have more money in the future. This “more money” is wealth generation resulting from investing in a business that profits.

So, what exactly is a startup?

You have a (great) idea. You start a business. No one believes in your idea. Its crazy they tell you. It would never work. Why, they say, if its such a great idea are the big players in your space not already doing it? As soon as you start valuing your company, you start to see the discrepancy between what you believe the business is worth and what others (“experts”/”investors”) think its worth.

You see where I am going with this?

You “invest” time, effort, energy in this company denying yourself gratification in order to build wealth and if you are successful, the worlds view of the businesses worth now matches your own (or more likely there is froth and the pendulum has swung wildly to overvaluation…You sell into this as fast as you can hombre!)

Value Investing has the concept of a “catalyst”, the event/result that brings together the price of an investment to its real value and converges the two. You, my entrepreneur friend are the catalyst in your business. Believe in yourself and stop listening to the noise.



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