This is the first online version of my decision making journal. This is basically what I use myself, but I thought it might be interesting for other too. So I put it here. This was done very fast, in two hours, so please forgive error. To be honest, I am also a bit excited how I gonna rank for “decision making journal” on search.
Read MoreSpecifically written for product managers, this article is designed to give a useful framework for thinking about machine learning and artificial intelligence.
Read MoreIn this article I put out my opinion on the comment complain “i don’t find enough time to read” and how to think about reading in general.
Read MoreIch habe in den vergangenen Monaten relativ wenig geschrieben, das liegt daran, dass ich mit Ookam gut beschäftigt bin und auch dort regelmäßig schreibe.
Es gibt wenige gute Erklärungen, daher hoffe ich das der Artikel einen Überlick gibt und gleichzeitig die relevanten Quellen für eine weitere Beschäftigung mit dem Thema enthält.
In diesem Zusammenhang ist auch die https://www.nachfolgeunternehmer.org/ erwähnenswert. Eine Konferenz die wir am 5. Juli in Berlin veranstalten. Für einen discount code, einfach eine Mail an: s.buenau@gmail.com
Aus eigenen Fehlern gelernt eine kurze Zusammenfassung zum Thema Freiberufler vs. Gewerbe oder GmbH. Persönliche Sicht.
Read MorePricing is extremely important but has many 2nd and 3rd order effects that were not obvious to me. Summarising what I learned about pricing and unit economics from a product management perspective in this post.
Read MoreAgain, I just want to get this out there. Venture capital, other private equity and alternative asset classes often get paid in the following way: x% of the total money they are investing plus Y% of the returns they generate above some hurdle. Classic case is 2/20.
There are a many stories where this comes from: whale hunting, spice trading and other stuff. According to a fascinating book I want to recommend More money than God this is not actually true but what dreamed up by the first Hedge Fund guy. This is fascinating to me because the whaling and other stories are told soo often and apparently it is bullshit.
As stated previously I will analyse German Software companies. Most financial information is meaningless to me for the purpose of arriving at an attractive price. I can of course compile benchmarks and understand why current coverage, cash cycle theoretically matter but I don’t feel comfortable with it.
What I will do instead is put a value on the whole business then divide that by the number of shares. That will give me the price that I’d be willing to pay for more shares.
But, before I do this I want to share my approach so that I do the same thing for all companies and can improve. This is also written fast and based on common sense. I write we because I own a share of each company.
I will keep this part purely financial, some of the questions serve as preparation for qualitative research or asking the management.
An “investment” is something that you do today to generate cash in the future. If it does not generate cash it was a bad investment. But, if it does generate cash it is not automatically a good investment. Because it could also not be an investment at all.
Example: If I am in the business of selling balloons on the Oktoberfest, than the thing to put gas into the balloon is not an investment. Yes, it generates cash. Yes, it is re-used when there is gas filled it. But if I buy a new one, I cannot tell my investors that I have “invested” in something. The new gas thing will not generate more revenue at the next Octoberfest, it will just allow me to do any revenue.
Normally, I would expect to find the “investments” in the assets on the balance sheet. Now, in case of software, most likely there will not be an asset on the balance sheet but I expect it to be somewhere on the incoming statement - hidden as labour costs.
Enough theory, let’s start
I feel there has been too much theory from me. I will start and later come back to this article. The questions above still stand.
