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Wealth creation, demystified

Your guide to corporate wealth creation.

Understanding how businesses create value is the key to understanding how individuals build real wealth. Insights from a 3-time NYSE company leader and creator of the Value Equation.

3× NYSE IPO Leader Backed by Berkshire Hathaway Author of The Value Equation EY Entrepreneur of the Year $20B+ Capital Deployed Lybrand Gold Medal 3× NYSE IPO Leader Backed by Berkshire Hathaway Author of The Value Equation EY Entrepreneur of the Year $20B+ Capital Deployed Lybrand Gold Medal
The through-line

Punching your ticket to the upper 1% is tied to knowing how businesses create value.

Most American multi-millionaires — and all self-made billionaires — build their wealth by owning stock in companies they start or work for. It isn't a secret reserved for the elite. It can be learned.

The V-Formula 6 variables

Current Pre-Tax Return on Equity

  1. 01 Sales Number of customers × average price × units
  2. 02 Business Investment Hard assets + working capital
  3. 03 Operating Profit Margin % of sales after operating costs
  4. 04 Rate Charge on OPM Cost of using Other People’s Money
  5. 05 Maintenance CapEx Cost to keep the business whole
  6. 06 % of Equity Owner capital in the stack

Six variables, middle-school math, universal relationships. Add five more growth variables and you arrive at total expected returns — the Universal Business Model.

3x

NYSE IPO company leader

$20B+

capital deployed to U.S. businesses

40+

years of finance & leadership

6

variables in the Value Equation

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“A gift for anyone interested in business, from start-up dreamer to seasoned executive.”
R. Ted Weschler — Investment Manager, Berkshire Hathaway
Insights from Chris

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