This is particularly true in small cap cos because the lack of liquidity inhibits institutional interest. These cos have to significantly outperform their market cap before institutions take an interest and properly value the company. That timing disparity is the opportunity.
Companies started in difficult economic times are built with a set of values that make them sturdier than those started in easier times. Scarcity helps foster good habits that are lost in times of plenty. The best learnings for entrepreneurs and investors are happening now.
“The most important thing to remember is that inflation is not an act of God, that inflation is not a catastrophe of the elements or a disease that comes like the plague. Inflation is a policy.”
— Ludwig von Mises
A simple playbook many companies are or should be pursuing:
1. Delight customers
2. Focus on profitable growth
3. De-lever/strengthen balance sheet
4. Optimize working capital to generate cash
5. Acquire more customers efficiently
(Go back to #1)
I’ve come to appreciate over time that social skill and relational skill are different things. It’s common in my industry to find people who are socially strong but relationally weaker. You will also find less commonly people who are relationally strong but socially weaker.
Social competence seems to index more on speaking skills and comfort with group dynamics, but relational competence indexes more on asking good questions, listening, empathy, and depth coupled with comfort with one-on-one interactions. They can be quite different skill sets.
The most common misperception I see in this industry is people who are socially strong and relationally weaker conflating the two and not realizing their own relational weakness.
On the flip side, people who are relationally strong but socially weaker often don’t fully appreciate their own relational strength because social skill can be a more viscerally observable and valued trait.
@EdKrassen I don’t think America needs another billionaire president. The backbone of America needs a new fresh humbled person down to earth that the people feel they can relate to. Billionaires are not the nations favorite right now.