A Quote by Warren Hellman
The beauty of service-type businesses is that if they're well run, you have huge excess cash flow.
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Gold is a commodity; over the long run, as we look back, it has not been a good investment. You can't look at the intrinsic value of gold as you can a business. Gold doesn't give you cash flow, and, at the end of the day, cash flow is what is important. Gold doesn't give you dividends.
There are two kinds of businesses: The first earns 12%, and you can take it out at the end of the year. The second earns 12%, but all the excess cash must be reinvested - there's never any cash. It reminds me of the guy who looks at all of his equipment and says, 'There's all of my profit.' We hate that kind of business.
When the government takes more money out of the pockets of middle class Americans, entrepreneurs, and businesses, it lessens the available cash flow for people to spend on goods and services, less money to start businesses, and less money for businesses to expand - i.e. creating new jobs and hiring people.
More than 60 percent of small businesses face payment delays. That can cause a serious cash flow crisis. So, as president, I will explore new ways to arm small businesses with the tools to fight back and level the playing field.
Our attitude toward cash generation and asset management came out of our own thought process. After we acquired a number of businesses we reflected on aspects of business. Our own conclusion was that the key was cash flow.
If you look at academic studies, you can see that stock prices are most closely correlated with cash flow. It's such a straightforward number. Cash flow is what will drive shareholder returns.
America is the largest corporation on the planet. You wouldn't hire a novice to run a similarly sized company in the private markets. My father has created more jobs through his private businesses than certainly any of the candidates. Mitt Romney has executive experience, but it's a different type. He didn't run entrepreneurial businesses.
There are lots of businesses that are well in excess of $9 billion that have gone into bankruptcy, that have been mismanaged. And that has not served anyone very well.
Learning how to keep track of inventory and cash flow and creating an income statement and a balance sheet are great skills to learn for managing existing businesses.
You can't look at the intrinsic value of gold as you can a business. Gold doesn't give you cash flow, and, at the end of the day, cash flow is what is important. Gold doesn't give you dividends.
When I ran a small IT services business in the 1990s, it had strong recurring revenues - yet I couldn't accurately forecast cash flow for even the next few quarters. Small changes in the customer base or losing/hiring a few key employees could create massive swings in cash flow.
I wrote a song that basically turned into a public service announcement for the fellas out there, like, 'Should you run into this type of woman, run for your life!' So the name of the song is 'Run,' featuring the rapper ScHoolboy Q. It's one of the standouts on the album, in my personal opinion.
The major changes that will be occurring within the new merged partnership are exciting in many ways. First, we will have the highest forecast distribution growth rate of any of the major MLPs. Second, our coverage will be above average for the same peer group with expected $1.1 billion of excess cash flow coverage through 2017 and the Access cash flows, along with our major new fee based projects continue to dramatically reduce exposure to commodity prices.
While Washington pays lip service to the challenges facing small businesses, it repeatedly chooses its own expansion over results. In effect, government has become a huge silent partner in all businesses, often taking a majority of the profits and forcing many unprofitable business decisions without the risk that it will be fired.
My parents were immigrants who started a nursery as a way to get us kids through school. I learned around the dinner table about customer service and cash flow and paying bills.
I've certainly learnt there's nothing more important than cash - cash flow issues are one of the biggest causes of company failures.
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