OT today's society, Whatnot vs Sotheby's

[Rhotchkiss]

Scott, regarding this statement: "We have become a nation where perceived potential has become more important than any actual value."

I think that has been the case for a long time, likely because its human nature. Consider the NFL team who trades away a productive, veteran player for a 3rd year draft pick in next year's draft. Or the pharma company listed on Nasdaq at $80/share and has earning of -$1.30/share, but that pill in that trial sure looks promising. Or, farmers who went west looking for land, as if there wasn't enough in the existing 13 states/colonies. Then, there is my uncle who (I think in the late 1990's) paid a small fortune for the first plasma TV when the traditional TV on his mantle worked just fine and showed all the same channels, at a fraction of the price. Humans are always seeking whats next -- potential is sexy, its unlimited, its the future. The current is just plain boring.

Now, as far as companies go: I think many people start and build companies for the sake of creating actual value, earning a great living, and having a gratifying career/work-life situation. I did exactly that. But, those stories don't make headlines; although they sure as hell can attract private equity if there is enough meat still on the bone for the next guy to double his money.

I also think we need to distinguish the owner/operator from the investor. While they both are "at risk" (money, time, social capital, etc.), the latter has no true tie to the company, sees it only as a means to a profit-end, and they are not "long" in the company/business. Different strokes for two very different types of folks. The build, sell, rinse and repeat model is alive and well (and nothing new), but so too is the build for long-term value model alive and healthy, it just doesn't get the headlines.

Like may Grandfather used to say: "All you can do is live and be well, and leave the rest to God". Grow your business Scott, have fun, earn a good living, and one day (I hope) sell it for a ton.