Short-Term vs. Long-Term Thinking

Years ago, a family member built a ski cabin as a future retirement home. Until that day came, they rented it out to cover the costs.

Turns out, people treat rental properties differently than their own homes.

• Spoons, towels, and pillows vanished.

• Plates and glasses broke.

• Mattresses disappeared entirely.

• Hot tubs became foot baths.

• Hardwood floors bore the scars of high heels.

It’s a familiar theme: when something isn’t yours to keep, you treat it with less care.

Fortunately, my family member saw this coming and furnished the cabin cheaply—knowing rental items would take a beating. When they finally moved in, they replaced everything with high-quality furniture, knowing it would now be well-maintained.

The Business Parallel: Owning vs. Renting a Company

In business, the same mindset applies.

A financial buyer—like a traditional private equity firm—acquires a company with the intention of selling it in a few years. In this model, they’re essentially renting the business’s earnings for a set period. Their decisions maximize short-term value rather than long-term sustainability.

In contrast, true owners think differently.

• They invest in quality rather than cutting corners.

• They prioritize sustainability over quick wins.

• They build for the long haul, knowing the payoff comes decades down the road.

At Sum Capital, playing the long game isn’t just a strategy—it’s a core principle. We measure success not by quarterly performance but by whether our businesses are stronger ten, twenty, or thirty years from now.

Playing the Long Game

While I’ll happily rent a place on vacation, when it comes to business, I’m always an owner—because long-term thinking is the only way to create lasting value.