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The Metric Warren Buffet Cares Most About and How To Use it to Take Home More Cash | Ep 292

The Metric Warren Buffet Cares Most About and How To Use it to Take Home More Cash | Ep 292

FromThe Game w/ Alex Hormozi


The Metric Warren Buffet Cares Most About and How To Use it to Take Home More Cash | Ep 292

FromThe Game w/ Alex Hormozi

ratings:
Length:
13 minutes
Released:
Apr 15, 2021
Format:
Podcast episode

Description

Keep the cash flowing! Today, Alex (@AlexHormozi) talks about the number one mistake he says a lot of entrepreneurs make in terms of making more money. He also talks about the number one metric that he uses to track his businesses, and why you should follow this concept. if you're thinking about reinvesting in the business, make sure that the dollars that you're choosing to reinvest, you're getting the best return on capital you possibly can.
Welcome to The Game Podcast where we talk about how to get more customers, make more profit per customer, and keep them longer, and the many failures and lessons we have learned along the way to $100M in sales. We've got roll-up-your-sleeves kind of hustle with a little bit of cleverness and a lot of heart.
Timestamps:
0:53 - the number one metric Alex uses to track his businesses is called Net Free Cash Flow
3:48 - The reality is the chips are stacked against you. 99% of businesses don't get sold ever
4:52 - The mistake a lot of entrepreneurs make is that they don’t focus on Net Free Cash Flow: “How can this business pump out profit? While I still continue to grow it?” 
6:17 - Net Free Cash Flow focuses the entire company on not just making a profit, but making a profit in access of what is required to continue to run and grow the business. Alex also shares two more important metrics: PE ratio & return on capital 
10:34 - We are all exposed to a factor we discount on a regular basis. It’s called “Operational Risk”
Follow Alex Hormozi’s Socials:
https://www.linkedin.com/in/alexanderhormozi (LinkedIn ) | https://www.instagram.com/hormozi/?hl=en (Instagram) | https://www.facebook.com/alex.hormozi (Facebook) | https://www.youtube.com/c/AlexHormozi (YouTube ) | https://twitter.com/AlexHormozi?s=20&t=J9vPh75tO3ow9xExYLsBDQ (Twitter) | https://www.acquisition.com/ (Acquisition )
Released:
Apr 15, 2021
Format:
Podcast episode

Titles in the series (100)

Welcome to The Game Podcast where we talk about how to get more customers, make more profit per customer, and keep them longer, and the many failures and lessons we have learned along the way to $100M in sales. We've got roll up your sleeves kind of hustle with a little bit of cleverness and a lot of heart. Hosted by Alex Hormozi.