SEARCHERS! Find your needle in the haystack.
April 02, 2024
by a professional from The University of Texas at Austin - Red McCombs School of Business in Austin, TX, USA
What does Warren Buffet do to spot a good deal that you can do too?
It's the answer I give all searches who ask how to spot a good deal……
“Look at 100 deals
AND talk to the owner of any business in that 100 that you remotely like.”
For a brokered search, that means at least 100 teasers.
Maybe 20 CIMs, and maybe 5 owner calls.
That means tracking the deals in a Google sheet, having formulas for deals to calculate key deal metrics, having written criteria, and documenting industry trends.
Each deal is teaching you something.
There is NO shortcut.
The more deals you see, the better you get at saying no.
LOOK AT 100 DEALS before saying you understand the market.
Buffet can say yes to a multi-billion dollar deal quickly because he spends all day reading about deals and business. And he's been doing it for longer than you've been alive.
You don’t have to be Buffet-level good at deal spotting, but you can be great at deal-spotting for the deal you need to find.
Where you are saying yes to a $1M or $25 M deal…
LOOK AT 100 Deals…
To find your needle in a haystack.
from University of Southern California in North Palm Beach, FL, USA