Cash is the lifeblood of your business. There are very few things in business that will kill you, but running our of cash is one of those things. You can recover from almost any other mistake, but if you run out of cash you're dead.
Intrinsic value can be defined simply: It is the discounted value of the cash that can be taken out of a business during its remaining life. The calculation of intrinsic value, though, is not so simple. As our definition suggests, intrinsic value is an estimate rather than a precise figure, and it is additionally an estimate that must be changed if interest rates move or forecasts of future cash flows are revised.
Fun is at the core of the way I like to do business and it has been key to everything I've done from the outset. More than any other element, fun is the secret of Virgin's success. I am aware that the ideas of business as being fun and creative goes right against the grain of convention, and it's certainly not how the they teach it at some of those business schools, where business means hard grind and lots of 'discounted cash flows' and net' present values'.
Politics has become unbelievably and unfortunately way too much about how much money is involved rather than what kind of ideas are involved.
You look so out of your element. (Savitar) I am out of my element. Much like you in a Seattle Goth club. (Acheron) I’m never out of my element, Atlantean. And it must be dire indeed to get you in shorties, and on a board. One day I’m actually going to get you to say ‘Rad four-mill steamer, dude! (Savitar)
The essence of a good investment manager is one who studies a given business and extrapolates the future cash flows that the business is likely to generate over the next several years. Based on the cash flow and asset assessment, they can then arrive at their expected rate of return if they bought a fraction of that business at a given price.
So I think rather than being attracted so much now to working with my heroes, I'm sort of more attracted to working with completely unlikely strangers because it's more exciting really.
Nobody in my generation ever started out in private equity. We got there by accident. There was no private equity business - actually, the word didn't even exist - when I started. I got there out of the purest of happenstance and so I think many people find what they really enjoy doing just in that way. So another piece of advice for you is: don't worry too much about what you're going to be doing when you get out of business school - life will come your way.
In so many ways, our business is very, very unique. For example, in India, people pay with cash, and we accept cash from day one. And a lot of people in India pay with cash. And that's part of our business model.
When I started making Minecraft videos, there was already a ton of them out there. But when I started introducing the storytelling element, which no one had done before, that's when my Minecraft traffic started picking up.
I think there are a lot of people who are involved in the Tea Party who have very real and sincere concerns about spending that's out of control or generally philosophically believe that the government should be less involved in certain aspects of American life rather than more involved. And they have every right and obligation as citizens to be involved and engaged in this process.
When I first started out, I was really attracted to having my own sense of style because I started swing dancing, lindy hop, and jitterbug.
There's an element of realism to it. I immersed myself more in the subject as a young adult. Then I started to get involved with a lot of people that were involved in it, and they would just bring me along basically. And I learned and decided that my Christian charity, what I wanted to do to serve God's will, was to help people that were ensnared by the demonic.
Homeowners who refinanced their mortgages took out cash and reduced their monthly payments at the same time. Much of the cash obtained by refinancing was spent on consumer durables, home improvements and the like.
We started our company out of a need to survive, but we've built it based on a mission not only to help others survive but to prosper. In fact, we view ourselves as a mission with a business, rather than a business with a mission.
The Cash Money sound pretty much changed the era. It kind of put the business into rap. It was like, 'Get your money, dude. This is a billion dollar business.'