Business Owner

Not just a stock or a ticker symbol, but a share of an actual business.

When you view stock investing through the lens of a business owner, everything changes. Try it. You stop focusing on your stock’s ever-changing share price, and instead start diligently reviewing how your business is actually doing, operationally & financially.

Have we had any recent contract wins ? Is capex just to cover replacement or for expansion ? Will gearing ratios deteriorate and trigger debt covenant clauses if cashflow decreases ? Has senior management exhibited willingness to payout excess cash, or are they hoarders ?

Your time frame lengthens dramatically. The duration you use to measure success extends from weeks to quarters, months to years. You stop feeling anxious when you experience a 3 months, -30% correction in your stock price as global markets react to interest rate worries. Instead, you find yourself “tap-dancing to work” (thanks to Buffett) as your business’ cashflow from ops climbs to a 3-year high on the back of higher selling prices and gross margins.

Over your new, lengthened time frame, you realise that how your business does, so does it’s stock price.