- Very nice new intro to season 4 Dragons’ Den.
- Good to see all Dragons back healthy and breathing serious fire!
- note: I am not going to comment on the non-businesses as the “fun” factor for me to review them has dropped to practically zero. I see little point in beating up ill-thoughtout businesses.
I don’t know much about cosmetic so I won’t comment on Mistura Beauty much other than to say the cosmetic industry is one that takes a lot of marketing and advertising dollars to build and not an easy industry to build a reliable and solid business in. I see Brett has a few other related business and getting into the cosmetic business may make sense to him.
“We Buy Gold”/”The Gold Network” (website??)
Potential problems with Tim Wallis’ “We Buy Gold”/”The Gold Network”:
Trust is one big challenge in this business. Can Mr. Wallis be trusted? I don’t know Tim at all so I don’t know. Can the whole network of retailers be trusted to do the business fairly and honourably? In the age of online social media, it only takes a few bad apples to expose frauds and problems and breaking any public trust. Even Ontario Lottery has problems with its retailers.
May be I am too old school for this type of business but I value my business reputation deeply. So while the “gold” business may be a short run cash machine, it has one major problem. The problem is if some of these “retailers” decide to do business less honest than they should, the financial liabilities will be rest on the well-known Dragons/investors. And if the Dragons/investors wish to keep their reputations intact, they will have to pay up (even legally they don’t need to).
“We thought they [the LTCM people] were very smart people,” says Munger. “But we were a little leery of the complexity and leverage. We were very leery of being used as a sales lead. We knew others would follow if we got in.” Munger thought Long-Term wanted Berkshire as a “Judas goat.” “The Judas goat led the animals to slaughter in the stockyards,” he says, recalling Omaha. “The goat would live for fifteen years, and of course the animals that followed it would die every day as it betrayed them. Not that we didn’t admire the intellect of the people at Long-Term.”