Entrepreneurship Archives

How to Build the Next Trillion-Dollar Business

What do you need to build the next trillion-dollar business? What are the factors that can affect businesses in the 21st century? To build your company into the next trillion-dollar business, you will need exceptional brand recognition, enduring customer loyalty, and scale. You must also recognize the impact of the depreciating dollar, technology, and changing consumer purchasing power on your business goals. Read on to discover more about what it takes to build the next trillion-dollar business.

3 Pro Tips From Charlie Munger on Investing

3 Major Tips From Charlie Munger on Investing

Why should you listen to Charlie Munger on investing? What are Munger’s recommendations on investing? You should listen to the recommendations of Charlie Munger on investing because he along with Warren Buffet successfully built Berkshire Hathaway from a textile mill into a massive conglomerate. Their success has made them legendary in the investment community. Munger’s advice to investors is to always wait patiently for great opportunities, and be decisive when those opportunities come along. Read on to discover the recommendations of Charlie Munger on investing in the stock market.

David Epstein: How Innovations Happen

What drives innovation? How does efficiency prevent people from generating innovative ideas? In his book Range, David Epstein explains that trying to work efficiently and seriously—as many scientists and innovators do—will actually make it more difficult to innovate. When you let go of expectations and the fear of failure and experiment for the joy of experimenting, that’s when many breakthroughs tend to happen. Here is how innovation happens, according to David Epstein.

Tenets of Berkshire Hathaway’s Investment Strategy

What is Berkshire Hathaway’s investment strategy? Can the company perpetually maintain its impressive rate of return on investments? Berkshire Hathaway’s investment strategy involves using the cash collected from the conglomerate’s insurance subsidiaries and investing it in other businesses at a much higher rate of return. The strategy has helped the company to grow to be as large as it is today. However, even Charlie Munger notes that it will be difficult to maintain the company’s historical returns because it is harder to find underpriced investments when you have billions than when you have a few million. Read on to discover

How to Plan Your Goals: The 2 Steps to Success

Do you want to know how to plan your goals and follow through? What do you think is the main obstacle? Most people have at least some idea of the goals they want to achieve. The challenge comes in creating a realistic and actionable plan on which they can follow through. In his book The Sligh Edge, Jeff Olson lays out a two-step process for planning your goals: 1) design a representation of your goal, and 2) create a blueprint for carrying it out. We’ll explore both of these principles below.

What Is Lateral Thinking? An Underrated Skill

What is lateral thinking? Can you really come up with great ideas based on old knowledge or technology? In his book Range, David Epstein discusses the importance of lateral thinking in innovation. He says that contrary to popular belief, you don’t need to think outside the box and come up with brand new ideas to be innovative—sometimes it just takes looking at an existing product and improving upon it. Keep reading for examples of lateral thinking from David Epstein.

Wealth Building and the Power of Compounding

How do you use the power of compounding to build wealth? Can a compounding investment strategy help with taxes? A passive investment approach utilizes the power of compounding to build wealth. You will earn interest on the money you originally invested plus on the interest you have accumulated. As the pool of money grows, your rate of returns will also grow exponentially. This strategy will also help with taxes because you only have to pay taxes once on the accumulated pool of money as opposed to paying each year and diluting the impact of your capital gains. Read on to

The 10-Point Charlie Munger Checklist for Investing

What is the rationale behind Charlie Munger’s checklist? What are the core principles in the investment checklist? Charlie Munger’s checklist for investing is based on his latticework of mental models that help him identify and avoid cognitive biases that could lead to bad investment decisions. The checklist emphasizes thinking independently, analyzing vigorously, measuring risks, and allocating assets wisely. Read on to discover more about Charlie Munger’s Checklist for investing.

The 4 Common Investment Mistakes to Avoid

What are the four common investment mistakes? Why do investors fall prey to investment pitfalls? Common investment mistakes you must avoid include adopting overly complex investment models, listening to false oracles, combining companies with flawed synergies, and buying into companies that don’t expense stock options. The mistakes happen because of the competitive and profit-seeking nature of investors. The desire to get ahead and not lose out leads to avoidable and costly mistakes. Read on to discover more about the four common investment mistakes you must avoid.

Use a Passive Investment Strategy to Win Big

How a Passive Investment Strategy Wins Big

What is a passive investment strategy? Can passive investing outperform active trading? A passive investment strategy involves buying select securities and holding onto them for the long-term with the hope of extracting maximum returns and avoiding the fees involved in active trading. Most passive investors buy index funds that mirror the stock market to ensure diversification. Long-term studies show that passive investing has consistently outperformed active trading because very few people can truly exploit the imperfections in the market. Read on to learn more about the benefits of a passive investment strategy.