Alex Hormozi explains why most people don't follow Berkshire Hathaway's approach: they haven't earned the credibility yet. Without an MBA or experience running larger companies, they chase quick wins like social media growth instead of building the foundation needed to close real deals.
Charlie Munger said this before about like, wonder why no more people are doing what Berkshire is doing. But then you have Berkshire, you have Tiny, obviously up in Victoria. More people are starting to do this, but still not many people are doing this. Why do you think that is?
I would guess the reason people don't do it is because they haven't earned the right to do it. It's the same thing you guys probably see everywhere where it's like, hey, this is how you should grow your social media. And the person has like 100,000 followers on TikTok. I mean, that's cool, but like most people would be like, why should I listen to you? And they don't have an answer to that question. And so I think most people, because they're impatient, want to jump the gun and go to the highest leverage thing as soon as possible. And they haven't really like earned that credibility in the marketplace. And so they can't get deals because anybody who's worth doing a deal with is already ahead of them. It's like either you have to go like the corporate pedigree path and knowing that like, you know, you went to HBS. Not to say that like people who don't go to that are in any way less. Obviously I haven't. But like if you do that, that's like one path of getting the credibility because then that person has worked with 20 companies that are significantly larger than yours. And so they have experience they can draw from or you have done it yourself. And so I think most people don't fall in either of those buckets and that's why they haven't like earned the right to do that kind of model.
