The reading behind the playbook.
We learn from people who have owned and improved businesses for a long time. These are the sources our operating documents cite, and what we take from each one.
ContentsE.1Ownership and capital.1 / 3
§ E.1
Ownership and capital.How long-term owners think.
- Berkshire Hathaway
An Owner’s Manual
Long-term ownership, value per share, cash generation and returns on capital.
- Berkshire Hathaway
2023 Annual Report
Independent operating businesses, with capital allocation and leadership selection kept central.
- Bending Spoons
Company website
Owning digital products for the long term, improving them deeply and sharing technology between them.
§ E.2
Buying a business.Value and diligence.
- U.S. Small Business Administration
Plan your business: buy an existing business
Judge both the purchase and the work to manage the business, and check the buyer’s own capabilities.
- Aswath Damodaran
Acquisition alchemy
Separate the value of a business as it is from the value of improvements and synergies.
§ E.3
Recurring revenue metrics.Counting the same thing the same way.
- Stripe documentation
Billing analytics
How a billing provider defines and normalises recurring revenue, and why exports need reconciling.
- ChartMogul help centre
Gross MRR retention
Gross revenue retention, and the settings that change how it is calculated.
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