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"باید کسب و کارهایی را پیدا کنید که سرمایه‌گذاری در آنها بازده بالایی بر روی سرمایه ایجاد کند"

Bill Ackman
Bill Ackman Hedge Fund Manager
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Quote meaning
Imagine you’re chatting with a buddy at your favorite coffee shop. You’re discussing how to invest your money wisely. The core idea here is to seek out businesses that are really good at turning your investment into profits. Essentially, you’re looking for companies where every dollar you put in comes back with significant earnings. It’s like planting a seed and getting a whole apple tree instead of just a few apples.

This concept is all about choosing investments that offer a high return on capital. Historically, this advice has been crucial for investors. Think about Warren Buffett, one of the most successful investors ever. He looks for companies with a high return on capital because these businesses are more likely to grow and be profitable in the long run. The more efficient a company is at using its money to generate profits, the better it is for investors. So, when Buffett buys shares in a company, he’s not just looking at the current profits – he’s looking at the company’s ability to keep generating those profits without needing a ton of extra money.

Let’s take a real-life example: Imagine you’re considering investing in two different businesses. One is a small bakery that makes delicious, unique pastries. The other is a tech startup that’s developing an innovative new app. The bakery is doing well and has a steady stream of customers, but it needs to constantly buy more ingredients and equipment to keep up with demand. The tech startup, on the other hand, put a lot of initial capital into developing their app, but now they can sell it to millions without much additional cost. The tech startup has a higher return on capital because once the app is made, each new sale is almost pure profit.

If you’re thinking about how to apply this wisdom in your own life, start by looking at the businesses you’re interested in. Do some research – it might be more fun than you think. Look at their financial statements and see how much profit they’re making compared to their invested capital. You don’t have to be a financial wizard to get a basic understanding. Just check if the company is good at turning invested money into more money.

Now, let’s bring this closer to home. Imagine you and a friend decide to open a small coffee shop. You both put in $10,000. Your shop quickly becomes the talk of the town, and profits start rolling in. Instead of just using the profit to buy more coffee beans, you decide to introduce a delivery service. It costs a bit upfront, but soon, you’re reaching customers all over the city without much extra cost. Your initial investment keeps bringing in more customers and more profits, just by using the capital wisely.

So, next time you’re thinking about where to put your money, remember to look for that high return on capital. It’s not just about making a quick buck, but about steady, efficient growth. Keep an eye on those businesses that know how to use their money smartly – they’re the ones that’ll help your investment grow. And always remember, investing isn’t just about numbers; it’s about understanding the story behind the business and envisioning its future. Happy investing!
Related tags
Business growth Capital allocation Financial management Investment strategy Return on investment
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