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How MarQuis Trill Gained Millions Of Followers And What He Can Teach You About Millennial Marketing

The U.S. Census Bureau predicts that millennials are projected to outnumber Baby Boomers as the largest living adult generation in America. With the millennial generation making up such a huge portion of American consumers, it is imperative that companies understand how to effectively market products and services to this group. For this generation, social media has become an integral part of their lives. Many companies have taken notice and are using social media to craft their marketing strategies, however, many organizations struggle to understand and determine how to successfully capture the attention of millennial consumers.

One person that companies can learn a lot from is MarQuis Trill, a social media influencer, investor, and entrepreneur who has figured out how to authentically gain and capture the attention of young audiences. MarQuis made his social media debut on Myspace in 2003, at the tender age of 12. In 2017, he was listed as one of the most influential people on the internet. Now, through his social media platforms, MarQuis reaches millions of people every month, with a large percentage of his audience being millennials and Generation Z. After deciphering the formula for success, MarQuis started an agency called Entertainment 258, which is focused on helping businesses, influencers, athletes and artists develop and expand their brands. What are companies getting wrong when it comes to millennial marketing strategies?

How does MarQuis keep his audience engaged? What are some best practices when it comes to millennial marketing on social media? MarQuis sat down with Forbes to discuss these questions and more.

Janice Gassam: Who is MarQuis Trill? How did you develop such a huge following on social media?

 MarQuis Trill: It basically developed in college. I went to Prairie View A&M University on a full-ride scholarship. I had a chance to go to other big schools like Baylor, Texas A&M, USC…but I decided to go to an HBCU, just to change the culture…once I started attending the school, I saw the culture of the community. I went from playing basketball to [be] an artist, to [be] a promoter online and it just grew from there. I always had that marketing strategy inside me and my school kind of just brought that out of me.

Gassam: What are some mistakes that companies make when it comes to branding and marketing to millennials?

Today In: Leadership

 Trill: I think companies are getting things wrong, first, inside the company itself. They’re hiring people that are not a part of the culture—that’s the first thing. Everything we see on TV is a copy. We’ve seen multiple videos, multiple commercials from our favorite influencers. The people that work in those places are copying exactly what the millennials are doing, instead of coming to us and collaborating with us and actually hiring us and giving us jobs…instead of paying an influencer, how about hiring an influencer? It should start inside.

Second…I call it ‘camouflage marketing.’ And what camouflage marketing is, is when you’re marketing something, but it’s not focused on the actual brand. So that could be merchandise, that could be accessories, that could be sponsorships, that could be a flash of your logo…I think they should focus more on that, and creating cool content…collaborations, collaborations, collaborations. As time goes on, a 13-year-old turns 21…you always have to change…you always have to connect with the millennials and with the new generation.

If you don’t do that, you’re going to be disconnected. Once you become disconnected, it doesn’t matter if you’re a million-dollar company or a billion-dollar company—you’re going to lose revenue dollars…that’s what I feel a lot of companies are missing. You don’t necessarily have to hire someone, like a kid, to be the CMO of your entire company, just a collaboration or maybe you can give them a smaller job where they are just over marketing strategies for Instagram…all you need is five millennials in the office space for Twitter and Instagram and you’re going to have a hundred thousand followers, a million followers and they’re going to run it all for you…they don’t need big budgets because they’re young kids and as time goes on and they start doing more for your company, you’ll be able to pay them anyway.

 

Gassam: What are some trends you anticipate on social media when it comes to millennial marketing?

 

Trill: Well…it’s always something new and something fresh…what I try to focus on is fast news and fast content. That’s where you’ll get most of the engagement and most of your following from. That’s how I grew my following originally. I was taking videos from YouTube and putting them on Twitter. I was taking videos from Facebook and putting them on Twitter because different platforms have different videos and different followings. Something that’s been posted on YouTube probably hasn’t been seen by the people on Twitter…Twitter, Instagram, Snapchat, Facebook, they don’t all have the same following.

Different people get on different platforms because they like the functionalities of that platform. Kids that are on TikTok might not necessarily be on Twitter. People that are on Snapchat might not necessarily use Instagram all the time. That’s what people fail to realize. Every single influencer, they may not have every single social media platform. That’s where a lot of people miss out on…Twitter is for news information and text. Instagram is for pictures. Snapchat is for, right there on-the-spot videos. Basically, live videos…TikTok, [for] six seconds dancing. You have to be creative…young kids are on [TikTok] all the way from eight years old all the way up to 21.

 

Gassam: So, companies need to learn that they can’t post the same social media content on every single platform and expect it to stick?

 

Trill: Exactly. They also have to use camouflage marketing. Using influencers, creating dope content that doesn’t necessarily have anything to do with their products. They can flash the product in between the content or at the end or the person that’s inside the content can actually say the product. It can be a one-minute music video and five seconds out of the music video, that artist is pouring cheerios…he’s not necessarily saying ‘I eat cheerios.’ Now the consumer and the person that is watching the content, they’re smarter now…they know what’s fake, they know what’s an ad now…with the rules and everything you even have to put ‘ad’ or ‘promo’. So now, when you put that, your engagement goes down even more…you have to do it in a camouflage sense.

 

Gassam: Is there a social media platform you would recommend companies use when marketing to millennials?

 

Trill: It depends on what their product or service is. If you’re selling merch, I would definitely say go with Instagram and YouTube. If you’re already a super known company, I would say go with Twitter because the engagement there reaches faster…you get more retweets, you get more favorites, more impressions. If you’re trying to sell anything, if you’re trying to become a brand yourself, if you’re trying to conquer a market, I would say use YouTube because Google owns YouTube and they create all [the] SEO that’s on the internet…when you search something like ‘how to dance,’ whoever made a video on ‘how to dance’ on YouTube, that’s what’s going to pop up for a search and that’s free marketing, free viewership for the person, influencers or brand that made that video. Now content is becoming the search. That goes for marketing and branding as well.

 

Gassam: How can companies stand out to millennials on social media?

 

Trill: They should be more direct with the consumer. The consumer is getting smarter because they’ve seen so much content, so they can tell if something is fake, something is real, something is being promoted and they won’t engage as much to it. If the consumer and the people that are selling products, if they intertwine and they come more direct with people that are in the communities…then that’s when you start getting more product sales and more distribution in your product. I wouldn’t buy anything that I’m not tapped into or that I didn’t see anyone else wearing.

iPhone is hot because everyone has an iPhone, not because it’s the best phone…they keep developing different products. They have apps, they have iTunes, they have podcasts…they’re tapped into every culture…they’re basically competing against themselves…subscription-based is what’s coming next. AR is coming next, virtual reality is coming next. And these are the things that these companies need to focus on…someone will always develop something new; someone will always come up with something that’s greater than the other platforms.

Gassam: Popeyes recently came out with a very successful marketing campaign for their new chicken sandwich. Should companies copy these campaigns in order to be successful? In regard to the millennial consumer, do you think controversy sells?

 

Trill: I wouldn’t say copy. But they should come up with their own strategy. Once you see something so much, you are making the consumer smarter. Your next marketing campaign is going to have to be harder.

I think controversy is always great…but if you’re deliberately doing things on purpose and expecting a great outcome, nine times out of ten, it might not go your way. But if you have a whole marketing strategy behind it and if you know exactly what you’re doing and where you’re trying to go, then it’s definitely going to work…we don’t have to pay for press.

This interview has been lightly edited for brevity and clarity.

To learn more about MarQuis, visit his website or connect with him on Instagram.

Follow me on Twitter or LinkedIn. Check out my website.

I grew up in five different states and across two continents, which was the catalyst to my interest in diversity. My ultimate goal is to help leaders infuse more love into the workplace, creating a culture that is more equitable and productive. Currently, I work as a professor at Sacred Heart University, teaching courses in management. In addition, I am a consultant, helping organizations create a more inclusive environment. I earned a Ph.D. in applied organizational psychology from Hofstra University, and I enjoy conducting research in the areas of diversity, equity, inclusion, hiring, selection, and leadership.

Source: How MarQuis Trill Gained Millions Of Followers And What He Can Teach You About Millennial Marketing

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Social media influencer “MarQuis Trill” aka @6billionpeople shows you how he got thousands to millions of followers on Twitter and Instagram. MarQuis Trill has over 1 million followers on Instagram and over 4.5 Million on Twitter. Watch the video, susbcribe, follow and support the movement. Click the link below to subscribe to my youtube account. http://www.youtube.com/subscription_c… “MarQuis Trill” Instagram http://www.Instagram.com/MarQuisTrill… Download Songs – https://itunes.apple.com/us/artist/ma… For Booking or Features Visit ( http://MarQuisTrill.com ) | Email: Marquistrillbooking@gmail.com Download Mixes from DJ 6BillionPeople for free here — http://www.Soundcloud.com/Marquistril… Follow Me on all social networks Twitter http://www.twitter.com/6BillionPeople Instagram http://www.Instagram.com/Marquistrill… Facebook http://www.Facebook.com/Marquis-trill Company http://www.entertainment258.com Personal Website – http://MarQuisTrill.com Follow – https://twitter.com/6billionpeople Instagram – http://Instagram.com/MarQuisTrillShow MarQuis Trill Albums- Dreams Happen, Twerk Radio, Twerk GOD & 100K Followers Subscribe To The Channel for more Video & Music Support the TRILL Movement Buy MarQuis Trill Music — https://itunes.apple.com/us/artist/yo… More Music on Itunes —https://itunes.apple.com/us/artist/ma…. Buy MarQuis Trill Lastest Album – http://youngsolar.bandcamp.com/ Download Free Album – http://www.datpiff.com/Young-Solar-Ma… MarQuis Trill Free Music — http://www.Hulkshare.com/MarQuisTrill Soundcloud – http://soundcloud.com/Marquistrillmusic

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Tim Cook, Mark Zuckerberg, Sheryl Sandberg, and Other Tech Leaders Share Their Favorite Summer Reads

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  • When they’re not busy ideating in Silicon Valley, tech execs like to settle down with a beach read.
  • NBC reporter Dylan Byers rounded up book recommendations from tech CEOs in a summer reading list for his newsletter.

For folks seeking an elevated beach read this summer, NBC reporter Dylan Byers asked six tech executives for summer reading recommendations in his newsletter.

Read on for book recommendations from Mark Zuckerberg, Sheryl Sandberg, Tim Cook, and more.

Mark Zuckerberg — Facebook, CEO

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The Last Days of Night by Graham Moore.

A novel about who really invented the lightbulb by the screenwriter behind the Oscar-wining film “The Imitation Game.” It features the intertwining stories of Nikola Tesla, Thomas Edison, and George Westinghouse.

Sheryl Sandberg — Facebook, COO

Reuters

The Moment of Lift by Melinda Gates

Philanthropist Melinda Gates writes about the importance of empowering women, and how that action can change the world.

Tim Cook — CEO, Apple

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When Breath Becomes Air by Paul Kalanithi

When a young Stanford neurosurgeon is diagnosed with lung cancer, he sets out to write a memoir about mortality, memory, family, medicine, literature, philosophy, and religion. It’s a tear-jerker, with an epilogue written by his wife Dr. Lucy Kalanithi, who survives him, along with their young daughter.

Shoe Dog by Phil Knight

A memoir by the creator of Nike, Phil Knight.

Dawn Ostroff — Spotify, CCO

Richard Bord/Getty Images

Educated by Tara Westover

Westover, raised in the mountains of Idaho in a family of survivalists, didn’t go to school until she was 17. She would go on to earn a PhD from Cambridge University. This memoir chronicles her path towards higher education.

Evan Spiegel — Snap, CEO

Mike Blake/Reuters

Mortal Republic by Edward Watts

A history of how ancient Rome fell into tyranny.

Jeffrey Katzenberg — KndrCo

Getty Images / Larry Busacca

21 Lessons for the 21st Century by Yuval Noah Harari

Written in 2018, Harari addresses technological and political challenges that humans will have to tackle in the 21st century.

White Working Class by Joan C. Williams

Williams, a law professor, writes “Class consciousness has has been replaced by class cluelessness — and in some cases, even class callousness.”

Rebecca Aydin Business Insider

Warren Buffett Says He Became a Self-Made Billionaire Because He Played by 1 Simple Rule of Life

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Berkshire Hathaway chairman and CEO Warren Buffett will always be remembered as an investing luminary. But so often you’ll find Buffett expounding on things outside of his investing mastery.

In HBO’s 2017 Becoming Warren Buffett documentary, Buffett taught a group of high school students not about money advice but about how to live a good life, and how becoming a good person means you’ll also become a successful business person.

It’s what was passed on from Buffett’s father to Warren–the principle of having an “Inner Scorecard” rather than an “Outer Scorecard.” Either one can get you to success, but one matters more than the other. Buffett said:

The big question about how people behave is whether they’ve got an Inner Scorecard or an Outer Scorecard. It helps if you can be satisfied with an Inner Scorecard.

Unpacking Buffett’s “inner scorecard” principle

An outer scorecard is what most people have or want, often driven by hubris, greed, or a life lived off-balance. It’s an external measure of success that attempts to answer elusive questions like, “What do people think of me, my success, my image, or my brand?”

The inner scorecard is intrinsic and it defines who you are at the core of your values and beliefs. The focus is on doing the right things and serving people well instead of on what other people think of you. In one simple but hard-to-attain word in business, it’s about being authentic.

 

The inner scorecard has been the Warren Buffett way and what has worked for the self-made billionaire his entire life. It’s taking the higher road and it’s paid off for Buffett.

Investor and author Guy Spier writes in his book The Education of a Value Investor, “One of Buffett’s defining characteristics is that he so clearly lives by his own inner scorecard. It isn’t just that he does what’s right, but that he does what’s right for him … There’s nothing fake or forced about him. He sees no reason to compromise his standards or violate his beliefs.”

Here are four examples of how living by your own inner scorecard can lead to success, as it has for Buffett.

1. Start with what you teach your kids.

In Alice Schroeder’s The Snowball: Warren Buffett and the Business of Life, she quotes Buffett offering a parenting tip: “In teaching your kids, I think the lesson they’re learning at a very, very early age is what their parents put the emphasis on. If all the emphasis is on what the world’s going to think about you, forgetting about how you really behave, you’ll wind up with an Outer Scorecard. Now my dad: He was a hundred percent Inner Scorecard guy.”

2. Beware of whom you hang out with.

One summer after graduating from Columbia University, Buffett had to fulfill his obligation to the National Guard and attend training camp for a few weeks. That experience taught him one incredible lesson: hang around people who are better than you.

Buffett said in The Snowball, “To fit in, all you had to do was be willing to read comic books. About an hour after I got there, I was reading comic books. Everybody else was reading comic books, why shouldn’t I? My vocabulary shrank to about four words, and you can guess what they were.

“I learned that it pays to hang around with people better than you are because you will float upward a little bit. And if you hang around with people that behave worse than you, pretty soon you’ll start sliding down the pole. It just works that way.”

3. Don’t forget the only two rules of investing you’ll ever need.

Buffett pares down his inner scorecard investment philosophy to two simple sound bites. He says, “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.”

Yes, he’s made billions but he has also personally lost billions–about $23 billion during the financial recession of 2008. What Buffett alludes to here is mindset–having a sensible approach to investing. That means doing your homework, finding sustainable businesses with good reputations, and avoiding being frivolous and gambling away your money. Buffett never invests prepared to lose money, and neither should you.

4. Never waver away from what matters most to you.

Buffett’s success is not so much about what he has done as it is about what he hasn’t done. With all the demands on him every day, Buffett learned a long time ago that the greatest commodity of all is time. He simply mastered the art and practice of setting boundaries for himself.

That’s why this Buffett quote remains a powerful life lesson. The mega-mogul said:

The difference between successful people and really successful people is that really successful people say no to almost everything.

This advice speaks directly to our inner scorecard. We have to know what to shoot for to simplify our lives. It means saying no over and over again to the unimportant things flying in our direction every day and remaining focused on saying yes to the few things that truly matter.

 

By:  Marcel Schwantes Founder and Chief Human Officer, Leadership From the Core@MarcelSchwantes

 

Source: https://www.inc.com/marcel-schwantes/warren-buffett-says-he-became-a-self-made-billionaire

 

 

Philippine Retail Billionaire Moves From Fashion to Pets

Robinson Retail Holdings Inc.’s head office in Manila.

Billionaire John Gokongwei’s Robinsons Retail Holdings Inc. is considering an exit from the fashion business as it struggles to compete with cheaper, faster chains like Fast Retailing Co.’s Uniqlo. Stock jumps to three-week high.

The Filipino retail giant, whose fashion portfolio includes the Topshop and Dorothy Perkins brands, instead sees better returns from pet, health and beauty products where demand is growing, said Chief Executive Officer Robina Gokongwei-Pe in an interview.

“We are shrinking fashion, for it has become very difficult,” Gokongwei-Pe said. “There are other brands that came in who are more progressive and cheaper. We are already reducing the number of stores and we have to think if we move out altogether.”

The Manila-based company is relooking its business as it faces shrinking operating margins and growing competition in the low-cost space. It’s pivoting into wooing higher-spending consumers by entering into the premium grocery market, as well as expanding foreign franchises in beauty products and pet care, hoping to achieve 15% revenue growth annually for the next five years.

“Pets have become very big,” said Gokongwei-Pe. “Dogs now are very spoiled. Just look at Instagram and Facebook, it’s all about dogs. You should put money where the money is, which is food, drugstores, hardware, and growing businesses like pets and beauty.”

Robinsons Retail’s fashion portfolio has contracted to six brands and 40 stores at end-2018 from nine brands with 60 stores in 2014. Fashion is among the company’s specialty shops, which were cut to 341 in March from 387 at end-2018.

The company in December bought the local franchise for South Korean personal care and beauty products retailer Arcova and Club Clio, adding to 15 stand-alone stores selling Elizabeth Arden, Shiseido and Benefit Cosmetics. It also procured the license for Singapore’s Pet Lovers Centre in October and plans to open a second outlet as early as this year.

“Robinsons Retail is deploying its capital in a way that promises more growth,” said Miguel Ong, analyst at AP Securities Inc. “Fashion isn’t attractive as before with the rise of online platforms and brands like Uniqlo dominating the market.”

Click RRHI PM <Equity> ANR to see how analysts rate the stock.

Targeting Affluent Shoppers

Under a five-year plan targeting mid-to-high teen revenue growth, Robinsons Retail will spend between three billion pesos ($59 million) and five billion pesos to add 100 to 150 stores a year, according to Gokongwei-Pe. The retailer has 1,911 stores in various formats, excluding 1,960 outlets of its The Generics Pharmacy.

Revenue contribution from supermarkets will rise to 55% this year from 47% in 2018 after its acquisition of former rival Rustan Supercenters, whose 36 supermarkets cater to affluent shoppers. Robinsons Retail’s own 160 supermarkets cater mainly to mainstream consumers.

Robinsons Retail loses value, trails Philippine stock index since Rustan purchase

The acquisition and other new stores will improve gross profit margin by 10 to 20 basis points this year, said Gokongwei-Pe.

Operating margin, which fell below 5% in 2018, will shrink further due to write-offs related to the Rustan purchase. It will “definitely” improve in 2020, when the integration is completed, she said.

Other highlights:

  • A foreign executive has been hired to manage Mini Stop, which has potential to double its 5% sales contribution in 2018, if the convenience stores are “scientifically” ran.
  • Robinsons Retail is considering creating its own e-commerce app for its supermarkets to fill the gap left by Honestbee’s closure in the Philippines. It may start from scratch or expand Growsari Inc., a grocery delivery service for mom-and-pop stores.
  • The closure of Honestbee caused a dip in supermarket sales and will impact this year’s performance as same-store sales growth could have been 4.2% to 4.5% instead of 3%.

By

 

Source: Philippine Retail Billionaire Moves From Fashion to Pets – Bloomberg

How Did The Owner and Builder Of The Newly-Completed 450-foot-Long Superyacht Flying Fox Keep It A Secret For So Long?

The short answer for such a massive superyact is, they didn’t really. But that doesn’t mean the experienced owner—who worked with the red-hot superyacht exterior designer Espen Oeino, interior designer Mark Berryman and the highly experienced, megayacht builders at Lürssen in Germany—couldn’t at least try. So, the 450-foot-long, 67-foot-wide yacht was built in the relative secrecy of Lürssen’s enormous manufacturing facility. And the yacht that took several years, and $100’s of millions to build (and probably more than a few non-disclosure agreements) was always referred to by its code name: Project Shu.

But then again, it was extremely hard to keep a yacht that’s much longer than a football field a secret when it finally emerged from the builders covered facility earlier this spring. And even harder once her sea trials on the Baltic began earlier this summer.

And as you can see in the few photos that have finally emerged (it’s now called by its real name—Flying Fox) Espen Oeino has designed an elegant yacht exterior that that looks sleek in spite of her massive over-all volume.

The balance and proportion of the exterior allows for generous deck space that offer a range of options for owners and guests to enjoy. Numerous terraces and platforms open out over the water to provide fantastic access the water. While every other exterior element, from sun decks and open entertainment areas to more shaded and intimate spaces, has been designed to provide the highest level of luxury.

For example, all superyachts have swimming pools, but Flying Fox is special in that its enormous swimming pool that runs from side to side on the main deck. The exterior also is equipped two helicopter landing pads, one on the bridge deck and another on the sun deck aft, that makes it possible to for owners and guests to use multiple helicopters.

Meanwhile, advance reports about the interior (no photos of the interior have been published yet) say interior designer Mark Berryman’s has interior has a calm and spacious feel featuring soft neutral tones and tactile finishes.

And as you can see from what the builder and project manager of this massive yacht said when the yacht was launched earlier this spring, they kept the “secret” going for as long as they could.

“Project SHU represents a major milestone for Imperial.” says Julia Stewart, Director at Imperial Yachts who brought their vast experience and knowledge to their supervision of the massive build project. “Being involved in impressive superyacht projects like these show our capacity and experience in superyacht and megayacht management, with regular deliveries of 80m+ projects supervised and operated by our team since 2015. Our strong and very dynamic links with Lürssen, Espen Oeino and Mark Berryman helped to achieve one of the most impressive vessel of the next decade”

Shipyard Managing Partner Peter Lürssen proudly states: “SHU fulfills the requests of a very experienced owner in an exceptional way. The owner’s input within all aspects of the yacht’s design was clear, strong and exacting. Building SHU was a significant challenge and we are very proud of this achievement. She represents another remarkable milestone in our history.”

But the secret is out now, and tuned for much more from Lürssen and Espen Oeino. The German yard, and Norwegian designer have been very, very busy.

Follow me on Twitter or LinkedIn. Check out my website.

During my previous life as an editor at several American yachting magazines, I was lucky enough to sail thousands of offshore miles on a wide variety of boats. My job as yachting scribe has brought me on adventures from the Arctic Circle to the equator, and to nearly every tropical destination in between. I’ve dodged high-speed hydrofoils on the brown waters off St. Petersburg, Russia, anchored in impossibly blue water off uninhabited islands in the Seychelles, Scandinavia, the BVI, and the Bahamas, and even flown aboard a Jayhawk helicopter with the US Coast Guard on training missions. These days, when I’m not travelling or writing about the magic that happens at confluence of superyachts, offshore adventure, luxury travel, and technology, I sail my ultra-simple, ultra-fast dinghy, ride my gorgeous and gloriously-expensive carbon fiber bike, and push our little one in a baby stroller all over New England.

Source: How Did The Owner and Builder Of The Newly-Completed 450-foot-Long Superyacht Flying Fox Keep It A Secret For So Long?

Three Conclusions From The 2019 Berkshire Shareholders Meeting

A Berkshire Hathaway shareholder arranges her shopping next to a large drawing of Chairman and CEO Warren Buffett, during a shareholders shopping event in Omaha, Neb., Friday, May 3, 2019, one day before Berkshire Hathaway's annual shareholders meeting. An estimated 40,000 people are expected in town for the event, where Chairman and CEO Warren Buffett and Vice Chairman Charlie Munger will preside over the meeting and spend hours answering questions. (AP Photo/Nati Harnik)

A Berkshire Hathaway shareholder arranges her shopping next to a large drawing of Chairman and CEO Warren Buffett, during a shareholders shopping event in Omaha, Neb., Friday, May 3, 2019, one day before Berkshire Hathaway’s annual shareholders meeting. An estimated 40,000 people are expected in town for the event, where Chairman and CEO Warren Buffett and Vice Chairman Charlie Munger will preside over the meeting and spend hours answering questions. (AP Photo/Nati Harnik)

ASSOCIATED PRESS

Berkshire Hathaway’s shareholders’ meeting as in past years yielded various insights on Warren Buffett’s and Charlie Munger’s insights on the markets, politics, tech stockspast mistakes and many other topics.

Further Buybacks On The Cards

It should come as no surprise that Buffett and Munger are considering further buybacks of Berkshire stock. With a large, and growing, cash pile and limited deal opportunities to date, they are likely to use cash to repurchase Berkshire shares as the fallback option. In fact, the pair used answers to certain questions, such as regarding Brexit in the U.K. to remind the audience that they are very willing to make acquisitions in Europe should they see the right deal at the right price. They feel that Berkshire is typically considered for deals in the U.S.. Yet, internationally they have more work to do to have Berkshire in consideration for a large business sale. Still, the emphasis on buybacks suggests that there is little in the deal pipeline for now, though of course that could change quickly. Buffett and Munger would love to see more attractive deals, but absent attractive opportunities, stock buybacks are the default.

Another Bite Out Of Apple?

Buffett and Munger were both very positive on current holding Apple, and Apple CEO Tim Cook was also at the event. It seemed clear that Buffett was quite willing to up his Apple stake at the right price.

Various objections such as potential regulation of Apple’s app store were raised in questions, though Buffett didn’t dismiss those concerns entirely, he mentioned that what has hurt the most is that the stock has gone up. That, the CEO’s presence and the fact that Buffett didn’t go out of his way to make the detailed bull case on Apple all suggest he make be angling to up his stake at the right price, even though Apple is currently Berkshire’s second largest public holding behind Coca-Cola.

A More Flexible Approach To Value Investing

Over his lifetime, Buffett’s investing approach has evolved and it continues to. In his early years, Buffett loved buying so-called cigar butt stocks, as popularized by his early mentor Ben Graham. This means stocks that may have been poor companies, but were trading well below the value of assets that could be sold realizing a profit for investors. Such deals are harder to come by now. As such Buffett looks more for great businesses at reasonable prices, a direction that Munger has clearly prodded him in. However, now Buffett talks of value investing in broader more creative terms, such that any stock where the likely expected cashflows exceed the price can be attractive, even if not cheap in on the traditional metrics and ratios associated with value investing.

So though Buffett’s approach continued to be refined, its core principles remain the same in looking for great businesses at attractive prices with sound management in place. In reviewing Buffett and Munger’s comments, one is left with the feeling that they are seeing few bargains in this market and buybacks paired with watching and waiting for certain key holdings such as Apple to fall so they might add more is the current strategy. Aside, from the comments at the meeting, the fact that the company is sitting on over $100 billion of cash and short-term securities at the end of 2018 reinforces that Buffett and Munger aren’t seeing the opportunities they would hope for in the current environment.

Articles educational only, not intended as investment advice.

Follow @simonwmoore on Twitter. Simon is Chief Investment Officer at Moola, and author of Digital Wealth (2015) and Strategic Project Portfolio Management (2009).

Source: Three Conclusions From The 2019 Berkshire Shareholders Meeting

Investor Kathy Xu Rockets To 2019 Midas List Top Ten As Power Of Chinese Startups Grows

Kathy Xu, founding partner of Capital Today, debuted in the Midas List top ten.

Kathy Xu, founding partner of Capital Today, made a bold Midas List debut. Photo courtesy of Capital Today

Capital Today founding partner Kathy Xu laughs when she talks about her career-making early investment in Chinese e-commerce company JD.com, which began with a late-night meeting with founder Richard Qiangdong in 2006:

“We met at 10 p.m. and we talked until 2 a.m.!” she tells Forbes. “I gave him five times the amount of money that he asked for — I was so worried that otherwise he’d meet with other investors.”

Capital Today managed to become the startup’s sole Series A investor and Xu’s check — $18 million USD — paid off royally as JD swelled into an ecommerce giant, with Xu working closely with Qiangdong along the way, advising him on key hires and company branding. Two years after JD went public in 2015, her firm cashed out returns of $2.9 billion.

A couple years and a handful of new deals later, Xu is making her bold debut on the Forbes 2019 Midas List, ranking in the top 10 venture capitalists in the world in her first year of inclusion (her work has previously been highlighted on Forbes China’s list of top 25 women venture capitalists in China).

This year’s list features 21 investors who are either of Chinese nationality or work for a firm based in China, the largest number ever on the list and a tribute to the growing power of China’s startup and venture capital ecosystems.

Xu says that Capital Today, which manages approximately $2.5 billion, focuses all its energy on companies based in and serving China and has zero interest in looking outside the country.

“It’s a big enough market, the economy is doing well, the entrepreneurship is great, and we’re starting to see real innovation booming for the first time,” she says. “It’s a lucrative market to focus on.”

Xu says that her team disciplines itself to only five or six deals a year in business-to-consumer companies and spends a lot of time with founders that it invests in.

“There’s more and more money here now, so building a connection with the entrepreneur and spending a lot of time with them is more important than ever,” she says, citing proximity as an advantage over out-of-country investors who only make occasional business trips.

Beyond JD.com, other Capital Today portfolio highlights include Chinese gaming company NetEase, discount e-commerce site Meituan-Dianping, classified listings site Ganji.com (which merged with 58.com in 2015), Yifeng Pharmacy, which went public in 2015, and hot snack company Three Squirrels Snack Food.

Other Chinese investors who made this year’s Midas list are Sequoia China partner Neil Shen, who topped the rankings for the second year running, Qiming Venture Partners’ managing partner J.P. Gan, No. 5, and Hans Tung from GGV Capital, No. 7.

See the full list of Chinese investors here.

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I’m a San Francisco-based staff writer for Forbes reporting on Google and the rest of the Alphabet universe, as well as artificial intelligence more broadly. Previously

Source: Investor Kathy Xu Rockets To 2019 Midas List Top Ten As Power Of Chinese Startups Grows

An Entrepreneur’s Framework For Gaining Mental Clarity In Stressful Situations – Chris Myers

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Anyone can survive the short-term fear of a roller coaster. Not everyone can endure the stress of entrepreneurship. Entrepreneurship isn’t like a ride or a game, where there is a finite ending to the experience. The stress and fear of entrepreneurship is pervasive, persistent, and cumulative over time. Chronic stress negatively impacts both our physical and mental well-being, and it severely hampers our decision-making abilities……

Read more: https://www.forbes.com/sites/chrismyers/2018/09/24/an-entrepreneurs-framework-for-gaining-mental-clarity-in-stressful-situations/#34808e131f01

 

 

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Most Successful Entrepreneurs Are Older Than You Think

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The romanticized image of entrepreneurs is a picture of youth: a 20-something individual with disruptive ideas, boundless energy and a still-sharp mind. Silicon Valley has bet on this image for years.

But is this right?

Far from it, according to our recent research with Javier Miranda of the U.S. Census Bureau and Pierre Azoulay of MIT.

Our team analyzed the age of all business founders in the U.S. in recent years. We found that the average age of the most successful entrepreneurs is 45 – and that founders in their 20s are the least likely to build a top firm.

The myth of the young entrepreneur

The idea that the most successful new business ventures come from the young, even the very young, is widespread.

Younger people are often thought to be less beholden to current thinking and thus more naturally innovative and disruptive. Many observers (perhaps enviously) believe the young have more time and energy, with fewer family responsibilities like nightly dinner with the kids or financial demands like mortgages. Besides, as Facebook founder Mark Zuckerberg said, “Young people are just smarter.”

Young founders also make for a dramatic story. The college dropout or young corporate drone shakes off conventional expectations to launch a new business with a ragtag team of fellow 20-somethings. After countless late nights, they emerge with the new killer app or consumer product that takes the market by storm, landing them on the cover of Inc., creating enormous personal wealth, and reminding stuffy executive types that hungry young upstarts can and will eat their lunch.

This stereotype has meaningful consequences. In Silicon Valley, for example, venture capitalists show a clear bias toward investing in younger founders, often leaving older founders out in the cold. The perceived link between youth and success is so prevalent that some tech workers reportedly seek plastic surgery to appear younger.

Prime time for entrepreneurship is middle age

But the image of the young entrepreneur didn’t hold when we looked at the data.

Past studies of high-growth entrepreneurship and age have yielded conflicting results, based in part on small and selected data sets that researchers studied.

To examine the question more definitively, we conducted an internal project at the U.S. Census Bureau. That enabled us to examine all businesses launched in the U.S. between 2007 and 2014, encompassing 2.7 million founders. We compared founder age to firm performance measures, including employment and sales growth, as well as the “exit” by acquisition or IPO.

Successful entrepreneurs are much more likely to be middle-aged, not young. For the top 0.1 percent of fastest growing new businesses in the U.S., the average age of the founder in the business’ first year was 45.

Similarly, middle-aged founders dominate successful exits. By our estimation, a 50-year-old founder is 1.8 times more likely than a 30-year-old founder to create one of the highest growth firms. Founders in their early 20s have the lowest likelihood of building a top-growth firm.

Why would entrepreneurs get better with age? It’s not clear, but we have a few theories. More seasoned entrepreneurs may draw on greater experience in management or deeper industry-specific knowledge. They may also have greater financial resources and more relevant social networks to leverage the founder’s business idea. For example, our study showed that prior work experience in the startup’s specific industry more than doubled the chance of an upper-tail growth success.

Even some of the most famous young founders tend to peak toward middle age. For example, Steve Jobs and Apple found their blockbuster innovation with the iPhone, released when Jobs was 52.

Change the narrative

By continuing to associate entrepreneurship with youth, investors are likely betting too young. If venture capitalists and other early-stage investors take our findings to heart, they’ll consider founders from a broader age range and may thereby back higher-growth firms.

By the same token, middle-aged would-be entrepreneurs may feel more confident about their chances – and more likely to win the resources they need to bring business visions to life.

On an even broader scale, the emphasis on young entrepreneurs has likely skewed innovation and its funding toward problems that the younger segment understands best. Updating views of the entrepreneur’s life cycle – and peak performance within it – may shift innovation toward areas that older individuals know better.

The myth of the young entrepreneur is an age-old image, but perhaps one whose number is finally up.

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