Insights From Top Investors – William Green

Nearly every principle that separates great investors from average ones maps directly to private equity (from William Green’s book “Richer, Wiser, Happier”)

• Fundamentals over forecasts – PE underwriting – focus on business quality, cash flow, and durability
• Margin of safety – entry valuation and deal structure are the PE version of margin of safety
• Patience and long-term orientation – pacing capital, and holding through operational fixes are central to PE outcomes
• Independent thinking – the best PE deals often require stepping away from auctions or leaning into complexity others avoid
• Risk management first – capital preservation through leverage discipline, downside cases, and governance is foundational
• Simplification – winning PE deals usually hinge on a few controllable value levers, not trying to do too much
• Behavioral discipline – internal pressure, competitive dynamics, and deal momentum create the same behavioral traps seen in public markets
• Quality businesses compound – PE outcomes are strongest when growth and operational improvements, not just financial engineering, drive returns
• Continuous learning – post-investment reviews and post-deal analysis (AAR – after actin reviews) are an advantage for any PE investor