My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
Back to Beliefs
Small business acquisitions offer superior risk-adjusted returns to public markets
Evidence
Buying profitable businesses at 4-6x EBITDA vs public markets at 25x+ earnings, with ability to improve operations
Implication
Individuals should consider business acquisition over index investing if willing to do the work
Counter Belief
Public markets provide better liquidity and diversification with less work
Example Application
Instead of putting $500K in S&P 500 for 8% returns, use it to buy business generating 20%+ cash-on-cash returns