What I learned from Berkshire Hathaway about Private Equity Done Right
Modeled after Berkshire Hathaway, our proprietary “Private Equity with Heart” strategy essentially evolves over time to become an impactful holding company that invests in innovative businesses and turns them around through our long-term commitment and close engagement with the companies we invest in. Strategically, this new age or holistic Private Equity approach focuses on 1 simple value “bucket” — We don’t pump and dump. We stay and we help operate businesses in which we hold a controlling stake.
“Warren says that in your lifetime you should swing at only a couple dozen pitches, and he advises doing careful homework so that the few swings you do take are hits.”
— Bill Gates on What he learned from Warren Buffet
This value system or bucket arrangement provides several major advantages.
First, we are in it for the long-haul for all the right reasons. We find well-run companies and give them more freedom than they would typically be given. Our success strategy is based on the trust we develop between our group, operating businesses we acquire, and our investors and shareholders. We find it our fiduciary duty to seek and maintain alignment in everyone’s best interest. The lack of a “zero sum game” attitude is a win-win — an omni-win.
Second, we are able to rely on cash generated by the operating businesses when markets are weak, providing us with capital to redeploy into new M&As where we can buy new assets on sale (rather than at full price) and breathe life back into them.
Third, we believe in continual reinvesting — we prefer to see that money be put back out by the team.
Last but not least, we look for value in growth. What does that mean? Well, we start with a focus on competitive advantage with respective to value proposition and potential — strong bang-for-buck. Then, we find businesses with good management and we give that management freedom with accountability for results. And then, we install our overlay of strong leadership.
At V4 Capital, we amplify the good+the genius of others — and in this case, the genius of Berkshire Hathaway’s clarity of the nature of how business works, period.
“Warren’s penchant for long-term investments is reflected in another of his aphorisms: “You should invest in a business that even a fool can run, because someday a fool will.”
— Bill Gates on What he learned from Warren Buffet
At V4 Capital, we amplify the genius+the goodness of others.
Our 4 Vs are:
V1. We strive to leave the world better than we found it.
V2. Every decision we make is baked in compassion, authenticity and integrity.
V3. We extend healing wherever we find suffering in the business world.
V4. We go beyond maximizing profits. We strive to contribute to the betterment of humanity.
V4 Capital will have 4 lines of value-adds:
- V4 Capital Private Equity “V4PE”
- V4 Capital Endowment Management “V4EM”
- V4 Capital Outsourced Management Office “V4OMO”
- V4 Capital Impact “V4CI”, our nonprofit
What We Do
V4 Capital’s private equity arm “V4PE” invests in innovative companies that bring revolutionary technologies and experiences expected to transform our future. Being big believers of long-term relationships and partnerships, we work closely with the management teams of our portfolio companies to up level their operational efficiencies and growth strategies. Additionally, we syndicate exceptional M&A and SPAC IPO opportunities and give access to institutions, fiduciaries, family offices, and accredited investors. Our goal is to connect the many dots to have the right investors meet the right opportunities. Diversity and innovation is so important to us that we diligently invest across the landscape of asset classes — technology, metals, commodities, alternative energy, real assets, biotech, and blockchain. Our humble stewardship of capital along with our service leadership of businesses adds value to our investors, grows companies, and brings long-term positive impact to the world — beyond success and consumption.
