Business Owner Mentality


“We don’t think of ourselves as buying and selling pieces of paper but rather investing in businesses” Frank Martin

“Stock certificates are deeds of ownership in business enterprises and not betting slips.” J Paul Getty

“Try to establish the value of the company. Remember that a share of stock represents a part of a business and is not just a piece of paper.” Walter Schloss

"People buy a stock and they look at the price next morning and they decide to see if they are doing well or not doing well. It is crazy. They are buying a piece of the business. That is what Graham - the most fundamental part of what he taught me. You are not buying a stock, you are buying part ownership in a business. You will do well if the business does well, if you didn't pay a totally silly price. That is what it is all about." Warren Buffett

“The reality is that stocks are not pieces of paper, offering returns correlated to arbitrary variables, but rather part claims on the future cash flows of businesses, whose returns are driven by changes – and anticipated changes – in these cash flows, as returns on capital respond to developing business environments, most importantly (from our perspective) those resulting from changes in the level of competition as capital enters and exits an industry.” Marathon Asset Management

“You have to think of yourself as an owner of a business, rather than an owner of a piece of paper. You own a small piece so therefore you really don’t control the business. So it’s almost self-defence to demand a large margin of safety because whatever value you perceive may not be there because you can’t control it” Li Lu

“When we buy shares of a stock, we are buying a piece of a business. So what is the business worth?” Mario Gabelli

"The number one idea is to view stock as an ownership of the business and to judge the staying quality of the business in terms of its competitive advantage"  Charlie Munger

“The foundation of our investment approach is to consider stocks as if they represent a fractional ownership in real businesses. While this may seem obvious, the vast majority of market participants do not approach stocks in this manner (unconsciously or otherwise) and the predominant emphasis is almost entirely based on the price of stocks over the short term." Francois Rochon

“When we buy a stock, we always think in terms of buying the whole enterprise because it enables us to think as businessmen rather than stock speculators” Warren Buffett

“Our business owner mentality causes us to think about broad macro topics, yet allows us to virtually ignore the constant babble of short term macro noise. In fact, short term macro challenges are often a boon to owners of quality companies, as marginal competitors fade away to the benefit of incumbents” Allan Mechum

"In our view, what makes sense in business also makes sense in stocks:  An investor should ordinarily hold a small piece of an outstanding business with the same tenacity that an owner would exhibit if he owned all of that business." Warren Buffett

“We are industrial owner types performing extensive due diligence.” Alex Roepers

“You have to look at stocks as parts of a business. When you acquire a stock, you should treat it as if you were to acquire the entire company. I personally think that's it's the only way to approach equity investing.” Francois Rochon          

“Investors must remember – although at the peak of emotion they sometimes forget – that securities are fractional interests in, or claims on, businesses that have their own assets and cash flows. They have (usually) ongoing business value and (at leadt hypothetically) a liquidation value” Seth Klarman

“I approach investing like I’m buying the business outright and retaining management. This mindset ties valuation to understanding and forces me to think through qualitative factors and potential threats to long-term earnings power. It also effectively winnows the field of potential investments, as I’m incapable of gaining confidence in most businesses.” Allan Mechum

“Forget the noise. Investing is about owning businesses!” Francois Rochion

"We see ourselves as part owners of the businesses we invest in" Robert Vinali

"We are investors in businesses. We are trying to identify those unique businesses with very high returns. At the end of the day, the core of our thought process says our return in an asset will approximate the return on the owner's capital the business generates" Chuck Akre

 "ValueAct Capital approaches each investment as if it is buying the whole company." Jeffrey Ubben

"In all of our investments, we look to business performance, not market performance.  If we are correct in expectations regarding the business, the market will eventually follow along"  Warren Buffett

"Our aim is to keep portfolio management grounded in a mentality of long-term business ownership. We've tried to stack the odds, via our policies and procedures, to promote a business minded approach - not a fund manager approach - that allows the four most important investment principles to flourish: patience and discipline, and more patience and discipline.  Our reasoning is simple; It's easy to do dumb things in investing." Allan Mecham

“Investors are going to make out a whole lot better if their whole emphasis is on owning businesses.” Lou Simpson

"Investing to me is the ownership of an interest in a business" Thomas Gayner