Successful people are not more talented than you and I.
What makes them successful are often uncommon habits and asking bigger questions. The more ridiculous the question, the more profound the answers.
If we want to learn from the best in the various fields, good questions would be the map for finding that treasure. To build a world-class network, we need to communicate in a way that earns it.
Despite most of the SaaS companies commanding lofty valuations, not all of them will meet the high expectations set out by investors. We have to first ask ourselves if this company has a moat, followed by understanding its unit economics to have a glimpse to the company’s eventual profitability.
Using the gross profitability method, a dollar invested in the market between 1973 to 2011 grew to over $80. While the same dollar invested in businesses that have high gross profitability (i.e. above 33%) grew to $572 in the same period.
While some of us were less ‘lucky’ than others in the ovarian lottery, all of us have the opportunity to create our own luck. Because luck simply comes down to a series of choices. As the saying goes “chance favors the prepared mind.” Start inviting lady luck by learning about money, changing your environment and calibrating your mindset.
Where the key value driver of a company is in intangible investments, investors need to look beyond reported earnings. Especially for innovative companies in their early stage as they invest heavily in growth. Compressing their earnings and balance sheet assets.
Every process, be it a business, a country, or your life, is like an S-curve lying on its side.
We first start out by putting more in.
By way of education, investment, or experiment before it starts going up. And when it goes up, as one would hope, for it to keep going up all the time.
Nevertheless, it is an S curve and eventually, it reaches the top and starts going down.
We have to find the next curve while we are still climbing. Before we start hitting the peak of the first curve. Because it is tough to start new when it starts going downhill.
Psychologically it is very difficult to start new when we are starting to experience the fruits of our initial investment. For individuals, the majority would “retire on the job”, and hope that life post-retirement would be more fulfilling.
The best way to find your next S curve is by taking action. Taking action helps dispel fear and anxiety when undergoing changes.
Reported earnings of high growth companies are often misunderstood by investors. Current earnings do not equate to real earning power.
Companies that are growing rapidly often reinvest heavily and their earnings are distorted as a result.
Earnings are the reported numbers. But real earnings power reflects the ability of the company to earn high rates of return on capital and grow at a high clip.
Reading the financial statements may be daunting for beiginners. This post will bring you through revenue, cost of goods and gross profit with case studies such as Costco, L Brands, Ulta and Ferrari!
#Attitude. It means giving your best on and off the court. It means showing up on time. It means out-hustling others even when your body is wearing out. It means treating your teammates and your coach with the utmost respect and care. It means to be the best version of yourself.
Operating leverage is a measurement of how an additional dollar of sales translates into operating profit. A 10% increase in sales may result in a 30% increase in net profits. Likewise, a 10% decline in sales may send a company’s earnings into oblivion.