Bob FraserCFO & Macro Strategist | Data-Driven Investing Expert | Speaker & Author

Horizon is one of the bigger things | Josh McCallen of Accountable Equity

Name: Horizon is one of the bigger things | Josh McCallen of Accountable Equity
Uploaded: 2022-12-29T18:44:24+00:00
Duration: 1 min
Channel: Bob Fraser
Description: In this brief interview segment, Josh McCallen emphasizes the importance of a long‑term yield horizon over short‑term, high‑percentage gains. He argues…

29 Dec 2022 · 1 min

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In this brief interview segment, Josh McCallen emphasizes the importance of a long‑term yield horizon over short‑term, high‑percentage gains. He argues that investments should be well‑capitalized, with sufficient working cash flow to weather downturns. McCallen distinguishes two investment approaches: buying fully mature assets that generate immediate cash versus acquiring growth‑stage assets at reasonable prices that require patient, well‑funded capital to realize their potential. He frames the latter as a hallmark of family‑office thinking, where patient capital and strong capitalization are essential for sustainable growth.

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I think horizon is one of the bigger things. Horizon of yield, meaning not just pick up 50% right now, let's pick up double digits for the long term. And then the second big thing was security. Let's make sure it's capitalized, not skim, not thinly capitalized, but firmly capitalized so that there's enough working cash flow, working operating investment so that we can weather struggles. We can build out something. I think the other thing entrepreneurs forget is that early on in any business, you don't throw off cash that month. You don't throw cash that 2 months. I mean, unless you're buying something that's completely done growing. So say you jump right into a big asset that is already done, it's reached its peak. You're paying full price for it, but you are getting a check that month. That is one way to invest. Another way to invest is to buy something that needs to grow. You might buy at a reasonable price, but the growth period needs capital and it needs to be patient capital. And that's a big hallmark of family office thinking is