As the global economy slowly turns around, we have embarked on a new era of growth. While innovation and new business ideas gain central stage, we should remember that some old-fashioned management practices are worth preserving.

By “old-fashioned” I mean: Companies should build a solid capital and reserve base, only grow if they can do so profitably, and avoid overleveraging at all costs. In simple terms, corporations should have some spare cash at hand for unexpected threats and opportunities and never engage in activities which put their entire future at risk.

A trip back to the Renaissance illustrates the point.

Unless you’re a student of European history, you’ve probably never heard of the Fuggers, a German merchant and banking family. In the 16th century, though, they were the reigning masters of the universe. The Fuggers bankrolled Europe’s greatest empires; their political influence was comparable to the Medici in Italy, and their wealth was matched only by the Rothschild’s a century later. Originally merchants of fine clothing, they diversified into banking in the 15th century. Their closest dealings were with the Habsburg family, which provided mining rights as securities against loans from the merchants....