511: Invest In Stable And Boring Old Economy Businesses

Investing into smaller, consistently profitable, old economy businesses is a great way to generate cash flow and diversify risk. Business-to-business companies with reliable, steady client bases can generate consistent returns. Compared to most other asset classes, including commercial real estate, you can buy these companies at very low multiples of free cash flow with much higher debt service coverage ratios. Jason Ehrlich, managing partner of Fruition Capital, has raise a fund that invests in companies with between $1-3 million on EBITDA. Jason finds experienced individuals searching for companies to acquire, and provides equity for them to take the deals down.