The time to buy a company in any industry is when it is out of favor; as a matter of risk control (and humility) the companies to buy when an industry is out of favor are
those with financial slack.
Not exact matches
I've been toying
with the idea that maybe there would be a way to create a crisis model off of the
financial sector and its clients, working off of a «how much
slack capital exists across the system» basis.
Having spent over 20 years of my career in a seasonal small business, I've learned that taking a strategic approach to managing the business and business finances will not only keep your business cash flow positive during the
slack times, it will help you stay focused on your business» long - term
financial health when it's flush
with cash.
My first article on RealMoney dealt
with the concept of
financial slack, and why it is particularly valuable for cyclical companies not to take on as much leverage as possible.
Better to manage such that you can buy - and - hold for moderate lengths of time,
with enough
financial slack to tide over rough patches in the market.
Having a real balance sheet
with slack capital has value during a
financial crisis.
To return to a concept I discussed in the first column I wrote for RealMoney, Valuing
Financial Slack in the Steel Sector, banks with a high degree of leverage relative to the overall riskiness of their assets and liabilities possess little in the way of financi
Financial Slack in the Steel Sector, banks with a high degree of leverage relative to the overall riskiness of their assets and liabilities possess little in the way of financial s
Slack in the Steel Sector, banks
with a high degree of leverage relative to the overall riskiness of their assets and liabilities possess little in the way of
financialfinancial slackslack.
Financial firms need to learn to run
with more
slack capital for disasters.
Investors
with sufficient
financial slack, like Warren Buffett, were able to wave in assets at bargain prices.
Manage not only your own expenses, but a group's (like your
slacker roommates) when you sync Buxfer
with your bank or import statements or
financial data files.