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What is The Most Undervalued Asset Class? It's Not What You Expect

by Tyler Tysdal
August 23rd 2021
00:01:54
Description

Tyler Tysdal and Robert Hirsch Share Knowledge in the Business World

At Freedom Factory®, we have experienced and witnessed the explosive results of entrepreneurs aligning passion and purp... More

Yeah, yeah. Hi there. It's robert Hirsch from feeding factory again and I want to talk to you today about what I see as the most undervalued asset class on the planet and that's small business. If you're to go buy a small business and let's say it's making $200,000 a year and it's in an average industry and you know, and an average thing, you might be able to buy it for three times earnings and what that means is the purchase price of the company would be $600,000. Now a lot of guys are watching saying, you know, maybe I don't have a $600,000 check or a six million check or a 60 million check, put, put whatever size is appropriate for you, but you can go get things like small business loans, you can do seller carry notes. You know, often you can buy a company throwing $200,000 a year for only 100 or $200,000 into it or less. And when I look at the stock market, let's say a company is training for for 20 times earnings. So if its earnings or a million dollars, it's trading for 20 million is its market cap. Well, it's much more interesting to buy a company at three X.

They wanted 20 X. And you know, the math is pretty obvious, but if you have an entrepreneurial skill set and you're willing to work hard and sales and marketing and entrepreneurship. There isn't a more undervalued asset class on the planet, Me personally, I've made all my money from buying, selling and operating small businesses over a 28 year career. If you have any questions about any of this, please give us a call. It freedom factory. Thank you so much for watching. Please hit like and subscribe, and we'll see you.

What is The Most Undervalued Asset Class? It's Not What You Expect
What is The Most Undervalued Asset Class? It's Not What You Expect
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