Guy Raz’s interview with Ron Shaich the founder of Panera and Au Bon Pain has a lot to offer small business owners and investors. He notes that they brought Panera private from a publicly traded company so they could make decisions long-term instead of trying to please Wall Street with short-term thinking.
The Small Business Owner’s Advantage
As small business owners, that is our competitive advantage as well. Mr. Shaich noted that in the recession of 2008 real estate prices and construction costs were 20% cheaper and they pounced on the opportunity to expand their stores.
Do you have your growth game plan in place? For businesses you don’t have to wait for the next economic downturn if you have the cash and can borrow a reasonable amount. The opportunity is here today – don’t wait!
Consider Real Estate
I know that as an investor I am eyeing real estate where I want to buy. You have to get the lay of the land now so you can pounce when the price is right. By researching the history of prices and rental income in the area, you’ll be grounded on price and value.
Stock Market Strategy
Stock market investing is the same, wanting to make money now but also needing to know where you are in the cycle. When the market turns down is when you want to pounce. Now you may just be buying or holding and riding the momentum with low conviction on what you own. When the market gets cheaper, you want to pounce, just like Buffet did in 2009 with GM and Goldman Sachs. He had been watching these stocks and knew they were a value.
Who knows how low the market will go. It doesn’t really matter.
If we ever get low values like during the recession in 1982 GO ALL-IN! One hundred thousand dollars invested in 1982 grew to $835,000 in 1995 and then grew to $2 million in early 2000! You did lose half of it over the next couple of years through 2002 (have a plan!) but it was still a great investment! Those were heady times during the tech boom.
Please don’t hesitate to contact me with any questions!
At Bartley Financial, we care about way more than your finances. We care about the life you’re trying to live; finances are just a piece of that. Call us anytime if you need fresh ideas for your finances or help in achieving your goals. We’re happy to help!