Building a Small Business that Warren Buffett Would Love

Warren Buffett′s legendary fortune shows that he knows what makes a great business now use his investment savvy to make the most of yours

The small business owner′s guide to making money the Warren Buffett way, Building a Small Business that Warren Buffett Would Love outlines and explains the core principles that define the businesses Berkshire Hathaway has embraced. Strong fundamentals make a strong business, and in this succinct, logical, and straightforward guide to financial success, business and investing expert Adam Brownlee shows how you can use Buffett′s blueprint for investing to make your company the best it can be. Establishing a consumer monopoly, strong earnings, low long–term debt, and the ability to reinvest are just some of the markers of success that define the companies that Buffett loves, and this book shows how to apply these and other fundamentals to both start–ups and existing small businesses.

A unique new approach to building a small business that applies the well–respected investment principles of Warren Buffett, Building a Small Business that Warren Buffett Would Love shows you the steps to success that have been proven trustworthy time and time again by one of the richest men in the world.

Foreword ix

Acknowledgments xi

Introduction Painting the Picture of the Ideal Business 1

Chapter 1 Buffett and the Fundamental Business Perspective 9

Chapter 2 The Importance of a Consumer Monopoly or Toll Bridge 19

Chapter 3 Strong, Consistent, and Growing Earnings 31

Chapter 4 Emphasizing a High Return on Equity 51

Chapter 5 Retained Earnings The Fuel for the Engine of Compounding Returns 81

Chapter 6 The Tumor of Long–Term Debt 131

Chapter 7 Keeping Up with the Joneses 147

Chapter 8 With Healthy Net and Gross Margins 157

Chapter 9 Building a Small Business That Warren Buffett Would Love Finishing the Landscape 167

Epilogue 175

Notes 185

About the Author 189

Index 191

Adam Brownlee is the author of three books on business and investing. As the former Director of the Kentucky Small Business Development Center at Western Kentucky University, he has assisted hundreds of small business owners in making key decisions about the refinement and reformation of their businesses.