Buyers and Builders Why aren’t more $2-10M EBITDA companies hiring a CIO?
Jan 10, 2026
Discover how hiring a Chief Investment Officer can transform a profitable business's approach to excess cash. Learn from real-world examples, like a fruit importer that shifted its focus to investments and boosted profits significantly. Find out why traditional methods like reinvestment and dividends may not be the best option. Delve into the importance of capital allocation as a growth engine and how treating cash strategically can lead to remarkable financial outcomes.
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The Hidden Problem Of Idle Cash
- Many profitable traditional businesses eventually accumulate excess cash with no obvious use.
- That idle cash loses value to inflation unless treated as a strategic asset.
Hire A Chief Investment Officer
- Hire a full-time Chief Investment Officer to treat excess cash with professional responsibility.
- Give the CIO authority to allocate capital across asset classes and manage risk systematically.
Fruit Importer Turned Cash Into Main Engine
- A fruit-importing group hired a full-time CIO and invested retained earnings across equities, private equity, hedge funds, and real estate.
- Today investment returns produced over 70% of the group's net profit and dominate overall economics.