Offshore
Photo
Daniel
RT @MnkeDaniel: American hedge fund billionaire Bill Ackman is a big fan of self-studying investing.
"You can learn investing by reading books."
Here is the 11-Book-List that he recommends to everyone who wants to learn about Investing👇 https://t.co/BT8hv4tutQ
tweet
RT @MnkeDaniel: American hedge fund billionaire Bill Ackman is a big fan of self-studying investing.
"You can learn investing by reading books."
Here is the 11-Book-List that he recommends to everyone who wants to learn about Investing👇 https://t.co/BT8hv4tutQ
tweet
Offshore
Photo
Clark Square Capital
Small cap investors whenever they get a rare +200 bps small cap factor move
tweet
Small cap investors whenever they get a rare +200 bps small cap factor move
https://t.co/SAx3RFrb3W tweet
Offshore
Photo
Antonio Linares
Acabo de grabar otro pod con los amigos de @10ampro: @holdmybirra, @dariopalacio y @Gordoneaprod.
Están construyendo algo increible en Colombia. Dadles un follow!
Hablamos sobre $TSLA y sobre como está creando una plataforma que promete revolucionar la economía mundial. https://t.co/evMrnbEesx
tweet
Acabo de grabar otro pod con los amigos de @10ampro: @holdmybirra, @dariopalacio y @Gordoneaprod.
Están construyendo algo increible en Colombia. Dadles un follow!
Hablamos sobre $TSLA y sobre como está creando una plataforma que promete revolucionar la economía mundial. https://t.co/evMrnbEesx
tweet
Offshore
Photo
Antonio Linares
A student of my course inquired about how $TSLA could be becoming more efficient while its operating margin is decreasing.
I responded with a quote from $AMZN's Jeff Bezos:
"Percentage margins are not one of the things we are seeking to optimize.
It's the absolute dollar free cash flow per share that you want to maximize, and if you can do that by lowering margins, we would do that [emphasis added].
So if you could take the free cash flow, that's something that investors can spend.
Investors can't spend percentage margins."
Every time $TSLA significantly improves its manufacturing efficiency, it reduces prices.
It then strives to enhance efficiency further to compensate for the price reduction.
This is why its operating margin is declining.
However, you can see $TSLA is becoming more efficient because it's generating more free cash flow per unit of operating margin.
This indicates that $TSLA is more efficient now.
By continuously improving efficiency and lowering prices, $TSLA makes it harder for competitors to keep up.
In this way, $TSLA ensures higher free cash flow per share over the long term, which is what drives the stock and what investors should actually focus on.
tweet
A student of my course inquired about how $TSLA could be becoming more efficient while its operating margin is decreasing.
I responded with a quote from $AMZN's Jeff Bezos:
"Percentage margins are not one of the things we are seeking to optimize.
It's the absolute dollar free cash flow per share that you want to maximize, and if you can do that by lowering margins, we would do that [emphasis added].
So if you could take the free cash flow, that's something that investors can spend.
Investors can't spend percentage margins."
Every time $TSLA significantly improves its manufacturing efficiency, it reduces prices.
It then strives to enhance efficiency further to compensate for the price reduction.
This is why its operating margin is declining.
However, you can see $TSLA is becoming more efficient because it's generating more free cash flow per unit of operating margin.
This indicates that $TSLA is more efficient now.
By continuously improving efficiency and lowering prices, $TSLA makes it harder for competitors to keep up.
In this way, $TSLA ensures higher free cash flow per share over the long term, which is what drives the stock and what investors should actually focus on.
tweet