The financial doctrines so zealously followed by American companies might help optimize capital when it is scarce. But capital is abundant. If we are to see our economy really grow, we need to encourage migratory capital to become productive capital - capital invested for the long-term in empowering innovations.
Empowering innovations require long-term investments, which tie up capital for years and years. So companies are using capital to create more capital, and consequently, the world is awash in capital, but the innovations we need to advance aren't there.
In early 2011, I had the opportunity to meet and spend significant time with Alfred Lin, a partner at Sequoia Capital and co-founder of Zappos.
I wanted to be a venture capitalist and join Sequoia Capital. They've financed and helped built some really special and enormously successful companies, including Google, Yahoo, Paypal, YouTube, Cisco, Oracle, Apple, and also Zappos.
The way to build long-term returns is through preservation of capital and home runs.
We don't really look at the stock, you know? Because for us, it's about the long term. And so we're very much focused on long-term shareholder value but not the short-term kind of stuff.
Sure there are some companies at the margins of our society that probably do that and I think we all have the responsibility as consumers and as investors to avoid them like the plague. If we do, they won't last very long. Doing what's right is the only possible formula for long-term - I emphasize long term - business success.
As long-term business builders, we invest our permanent capital and deploy management skills in support of talented leaders and companies with global potential.
Techstars has done a great job accelerating and providing venture capital to the most promising companies to make the biggest long-term economic impact.
You can build a filter app get people really excited, but the way to keep them is to provide long-term value. Long-term value is, in fact, being its own network.
Northleaf is delighted to have been chosen to manage the new fund. We look forward to implementing the fund's long-term strategy of constructing a portfolio of high-potential venture capital funds with the scale and resources to execute their plans, support successful high-growth companies and deliver world-class returns.
I do not like debt and do not like to invest in companies that have too much debt, particularly long-term debt. With long-term debt, increases in interest rates can drastically affect company profits and make future cash flows less predictable.
The way to build superior long-term returns is through preservation of capital and home runs...When you have tremendous conviction on a trade, you have to go for the jugular. It takes courage to be a pig.
To really disrupt a big market, you have to look at the marketplace from a long-term perspective. You have to move very fast but knowing that disruptive solutions just take time to build.
The thing that I learned early on is you really need to set goals in your life, both short-term and long-term, just like you do in business. Having that long-term goal will enable you to have a plan on how to achieve it.
Professional accountants should use that influence to encourage the companies they serve to think long term and integrate sustainable development goals into their accounting, such as by including a natural capital account, which I have heard is gaining ground.