One of the famous quote by Legendary investor and Billionaire Warren Buffet : If you gave me $100 billion and said take away the soft drink leadership of Coca-Cola in the world, I’d give it back to you and say it can’t be done.
Here is info-graphics that shows How Buffet chooses stocks by Using Graham’s and Phil Fisher principles on investing in equity.
Shark Tank is American reality show where aspiring entrepreneurs from around the world pitch their business models to a panel of investors and persuade them to invest money in their idea. Investor is known as Shark here. Here are some of best quotes from Sharks that we must adhere ,
Follow the green not the dream : Mark Cuban : If your idea / business is profitable by following 1 strategy then you have to stick with it dont lose your focus to start or infuse another strategy. For example in one of the Shark Tank pitches that business was profitable with food trucks strategy but the owners want to have brick and mortar stores as it was there dream to start with it.
3C defficiency : Cash , Credit , Customer : Daymond John : Your Business / product should not be having these Cash , Credit and Customers defficiencies . (3C Defficiency)
It’s good to own 10 % of watermelon than 100% of Apple : Mark Cuban : On asking for investment and you really feel that investor will add tremendous value then you have to lose more equity .
What time is selling time , it’ always a selling time : Robert Herjavec : Some enterpreneurs complains due to lack of time , resources available or wrong season these reasons they complain due to less sales /download / of their product.
If your Business / Idea is not profitable or not providing ROI then its a hobby : Kevin O’ Leary : Kevin has a litmus test of startup or business if its not generating any revenue after 3 years then you should decide whether you need to hit refresh . ( Change strategy , target audience or redefin roadmap / vision.)
Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. Warren Buffet is a CEO and revenue of Berkshire Hathaway is $223 billion USD.
Every quarter and year Berkshire Hathaway releases / publishes their annual report to public. Here is a list of all of its annual reports. Buffets talks about its thought about its investing in all of its annual reports , these are some consolidated ones.
At Berkshire, we much prefer owning a non-controlling but substantial portion of awonderful company to owning 100% of a so-so business; It’s better to have a partial interest in the Hope diamond than to own all of a rhinestone (an imitation diamond, used in cheap jewellery and to decorate clothes.).
Our flexibility in capital allocation – our willingness to invest large sums passively in non-controlled businesses – gives us a significant advantage over companies that limit themselves to acquisitions they can operate.
Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors – whether pension funds, institutions or individuals – who employ high-fee managers.
Keeps things simple and dont swing on fences , when promised on quick profits respond with quick no.
If you don’t feel comfortable making a rough estimate of the asset’s future earnings, just forget it and move on.
Forming macro opinions or listening to the macro or market predictions of others is a waste of time. Indeed, it is dangerous because it may blur your vision of the facts that are truly important.
A “flash crash” or some other extreme market fluctuation can’t hurt an investor any more than an erratic and mouthy neighbor can hurt my farm investment.
When Charlie and I buy stocks – which we think of as small portions of businesses – our analysis is very similar to that which we use in buying entire businesses. We first have to decide whether we can sensibly estimate an earnings range for five years out, or more. If the answer is yes, we will buy the stock (or business) if it sells at a reasonable price in relation to the bottom boundary of our estimate.
The goal of the non-professional should not be to pick winners – neither he nor his “helpers” can do that – but should rather be to own a cross-section of businesses that in aggregate are bound to do well.
I can’t remember what I paid for that first copy of The Intelligent Investor. Whatever the cost, it would underscore the truth of Ben’s adage: Price is what you pay, value is what you get. Of all the investments I ever made, buying Ben’s book was the best (except for my purchase of two marriage licenses).
To be Continued from Part I , If you havent went through PartI here is link. Now lets see these 2 Sharks Daymond John and Lori Greiner how to get a deal from these Sharks. Here are some of my findings ,
3. Daymond John : AKA Fashion guru . Founder, President, and CEO of FUBU . He is fashion guy likes to invest in Clothing and various forms varieties of Mens , womens apparels also in retail products . He has very few investments in software / app etc.
He typically offers x amount of $ for 33% minimum , he hardly goes down below 33% equity / stake. If DJ makes an offer first and that you are eager to hear or hearing other Shark’s offer then usually withdraws his offer . He is very flexible in partnering with other Sharks . He has partnership / deal of HSN .
Successful deals on Shark Tank :
4. Lori Greiner : AKA Queen of QVC. She is a Inventor, entrepreneur, television personality, author, investor. She holds over 100 U.S patents. Lori sticks to equity what she offers , because she is know for lightning speed in retail products . She has very good relationship with some of largest retailers in U.S (Walmart , Target , Bed Bath and Beyond etc.) . She belives is her own strategy to bringing into retailer . Her majority of investment are in mass product which are appeal to larger cosumer rather than small target audience. She has very few investments in Bakery products / cookies / healthy products / software / mobile apps. etc.
She takes atleast 15% equity depends of product / Business idea. If your product is not yet make it to retail her first step will be get into retail.
Successful deals on Shark Tank :
All of these findings / analysis are based on my views might vary from person to person.