Saturday, July 13, 2013

What is a firm?

What is a firm/company?

  1. Start with an idea/project
  2. A collection of ideas/projects is a firm/company
  3. Value creation only through good ideas/projects
  4. How to determine what is a good idea/project or a good firm/company?

An idea's cashflow is the idea's signature. The idea and it's cash flows are the same thing. Idea and benefit and cost are the same thing because if you can't combine the two, an idea is meaningless.

Walmart is a collection of ideas


Walmart is not selling something different. Walmart is a collection of ideas of how to sell the same things differently - and in the process creating huge value.

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