Brent Beshore – Cultivating a Disaster Resistant, Compound Interest Machine - [Invest Like the Best, EP.10]
Invest Like the Best with Patrick O'Shaughnessy
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Financing Strategy and the Role of Debt in Investments
The company uses a barbell strategy, with cash on the balance sheet and highly profitable, illiquid investments. They source financing for new acquisitions or investments by using a modest amount of debt, but are very reluctant to put much debt on the company. The amount of debt used depends on the type of company, with companies experiencing less variance and syclicality being more suitable for considerable debt. The company aims to use as little debt as possible that they think is reasonable.
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