When I want to buy an overpriced company I open locations or offices or sales teams at its fringes. Most companies cannot tolerate a 20% decline in sales. If you can cause a 20% decline in sales you can cause an 80% decline in purchase price. Mostly because talented people will flee to you. This is why you want free capital, and not to create too much debt or take too much profit. Most companies extract rents and profits and debt to the point where you can’t use capital to extract high ratio wins through acquisitions of people, operations, and customers at windfall discounts. The number of long established companies I have bought this way would astound you.
Theme: Incentives
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Curt Doolittle updated his status.
When I want to buy an overpriced company I open locations or offices or sales teams at its fringes. Most companies cannot tolerate a 20% decline in sales. If you can cause a 20% decline in sales you can cause an 80% decline in purchase price. Mostly because talented people will flee to you. This is why you want free capital, and not to create too much debt or take too much profit. Most companies extract rents and profits and debt to the point where you can’t use capital to extract high ratio wins through acquisitions of people, operations, and customers at windfall discounts. The number of long established companies I have bought this way would astound you.
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They only regret having kids until they’re old enough to understand the returns
They only regret having kids until they’re old enough to understand the returns on having kids. It’s endless.
Source date (UTC): 2018-11-09 22:32:54 UTC
Original post: https://twitter.com/i/web/status/1061023853533650949
Reply addressees: @NightmareFuelNF
Replying to: https://twitter.com/i/web/status/1061023652282388480
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WHY THE MIDDLE MUST RULE by John Mark The Middle is only population segment with
WHY THE MIDDLE MUST RULE
by John Mark
The Middle is only population segment with natural incentives to succeed honestly. The top likes to steal (corruption) cuz they can (they have the power to do so unless the middle punishes them for it). The bottom wants/tries to steal because they are too low-IQ to succeed much honestly. The middle is capable enough to succeed honestly but not powerful enough to have the opportunity to gain much by stealing/corruption.
Thus the middle must rule, and restrain the bottom and top.
Actually the law (natural law of reciprocity, Curt’s work and new constitution) must rule, but it will be primarily enforced by the middle whose incentives line up most with natural law.
Source date (UTC): 2018-11-09 11:57:00 UTC
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So the only question of any merit is, which of the strategies will achieve the n
So the only question of any merit is, which of the strategies will achieve the necessary ends, and will any of them come at lower cost? Not, ‘there is a low cost I am wiling to bear for this good’.
Source date (UTC): 2018-11-08 19:14:20 UTC
Original post: https://twitter.com/i/web/status/1060611495308992512
Reply addressees: @readomain
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Ergo, if you dn’t want to pay that price you are not a customer in the market fo
Ergo, if you dn’t want to pay that price you are not a customer in the market for survival. Because there is no limit that I know of to costs of survival.
Source date (UTC): 2018-11-08 19:12:24 UTC
Original post: https://twitter.com/i/web/status/1060611010422292481
Reply addressees: @readomain
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The problem with efficient supply chains is that they lack a supply sufficient f
The problem with efficient supply chains is that they lack a supply sufficient for shocks.
Source date (UTC): 2018-11-08 12:46:00 UTC
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“Looking at small scale niches, they see incentives, because that’s the scale th
—“Looking at small scale niches, they see incentives, because that’s the scale they see. Looking at large scale outcomes we see counter incentives because that’s the scale we see.”—Micah Pezdirtz
Feminine short term and consumptive, masculine long term and conservative.
Source date (UTC): 2018-11-06 20:40:52 UTC
Original post: https://twitter.com/i/web/status/1059908495510827008
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“Uncompetitive organisms pursue parasitism – if they can. As any organism would.
—“Uncompetitive organisms pursue parasitism – if they can. As any organism would. One doesn’t simply accept his reproductive strategy is suboptimal.”—Martin Štěpán
Source date (UTC): 2018-11-06 15:43:00 UTC
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“Looking at small scale niches, they see incentives, because that’s the scale th
—“Looking at small scale niches, they see incentives, because that’s the scale they see. Looking at large scale outcomes we see counter incentives because that’s the scale we see.”—Micah Pezdirtz
Feminine short term and consumptive, masculine long term and conservative.
Source date (UTC): 2018-11-06 15:40:00 UTC