“If companies have sales overshoots or undershoots, a very high incremental margin relative to a lower stated margin can cause a big profit beat or a big profit loss.”
♫
Said on In Good Company with Nicolai Tangen
“When you have a high valuation… you attract lots of competition… agents become detached and make mistakes”
Django Davidson · The Master Investor Podcast with Wilfred Frost · How to Profit When Cycles Turn - Django Davidson on Capital Cycle Investing
Play from 43:35
43:35
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What was described
Argue that very high valuations attract competition and cause management mis-steps, making such companies risky despite current profitability
Said nearby on the same subject
“If the funds has no initial charge, that is attractive even if the annual management charge is high… people will allocate to the one with a better historical return without realizing.”
AE
Alex Edmans
The Rational Reminder Podcast ·
“Make sure that you are in shorter duration debt… you bought duration… bonds can also be very risky… short of duration is a good idea at the moment.”
♫
Said on Bloomberg Money
“I bought a profitable free cash flow generating business…in a very narrow vertical…make your first sale profitable.”
TW
Tristan Walker
Equity ·
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