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"Estoy buscando obtener un rendimiento justo del capital acorde con la cantidad de riesgo que hemos asumido y la oportunidad que hemos ayudado a crear"

Bill Ackman
Bill Ackman Hedge Fund Manager
Translations
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Quote meaning
The essence of this quote is pretty straightforward. It’s about someone wanting to earn a fair return on their investment, considering both the risk involved and the potential opportunities they've helped to create. Simple, right? Let’s break it down.

Imagine you’re putting money into a new coffee shop in your neighborhood. You’re not just handing over cash and walking away; you’re assessing how much risk you're taking on. Is this a bustling area with a lot of foot traffic, or is it a quieter spot that might struggle to attract customers? You’re also looking at how much you’re contributing to make this coffee shop a reality. Maybe you’re bringing in not just money, but also your business savvy, connections, or marketing expertise. You want your return to reflect both the risk you’re taking and the value you’re adding.

Historically, this mindset is rooted in the principles of investment. Investors always weigh risk against potential rewards. Think about the stock market crash in 1929. That event underscored how risky investments can be and the importance of balancing risk and return. If you’re not cautious, you could lose everything, but if you’re too cautious, you might miss out on significant opportunities. This quote encapsulates that balance beautifully.

Let’s dive into a real-life example: Shark Tank. When entrepreneurs pitch their businesses to potential investors, they’re essentially negotiating the same balance. The sharks, or investors, consider the risk involved in the business venture. Is this product innovative? Is the market saturated? They also look at the opportunity – could this business blow up and make a ton of money? Then, they decide what a fair return would be for their investment. If they’re taking on a lot of risk, they’ll want a bigger piece of the pie.

So how do you apply this in your life? First, always assess the risk. If you’re investing time or money into something, make sure you understand what you’re getting into. Second, recognize the value you bring to the table. Don’t sell yourself short. Your skills, knowledge, and network are incredibly valuable. Make sure your return reflects that. Lastly, be fair. Greed can ruin deals and relationships. Aim for a return that’s fair for everyone involved.

Picture this: You and your friend decide to start a small catering business. You’re putting in the initial capital, and your friend is handling the cooking. To be fair, you both need to agree on how to split the profits. You’re taking a financial risk, and your friend is contributing her culinary skills. If you remember to balance the risk and the value each of you brings, you’ll be more likely to set up a successful, long-lasting partnership. Maybe you agree that you get a slightly higher return initially to recoup your investment, but as the business grows, the profits are split evenly. This way, both of you are motivated and feel appreciated.

In conclusion—just kidding, we'll avoid that phrase. But seriously, think about your investments, whether they’re financial, personal, or professional. Weigh the risks, recognize the opportunities, and make sure the returns are fair. It’s a balanced approach that keeps everyone happy and invested in the success of the venture. And next time you’re at a coffee shop, maybe even one you helped start, you’ll understand that the right balance of risk and reward makes all the difference.
Related tags
Capital allocation Financial goals Investment Investment strategy Return on investment Risk and reward Risk management
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