The best businesses we've ever seen are ones where the incremental return on capital is essentially infinite because you don't need capital to grow. And so you have a business that's generating cash and you need to decide what to do with that cash. And most of the time, the best answer is to give it back to shareholders, but sometimes the best answer is to redeploy it into new investments.

Vlad Barbalat — Invest Like the Best with Patrick O'Shaughnessy

@underscoredpodcasts

investingcapital-allocationcompounding

The biggest mistake most investors make on the S-curve is they get the direction right but they get the magnitude wrong — they underestimate the ultimate size of the market and the speed at which it grows, and so they sell too early.

Alex Sacerdote — Invest Like the Best with Patrick O'Shaughnessy

@underscoredpodcasts

investingventure-capitalmarket-sizing

If a startup launched this product and was able to do the demos that they can do, that startup would be able to raise at I would say easily a billion just based on current market conditions. But a startup is evaluated a lot differently of course than a you know public company that has spent somewhere in the range of three half billion dollars building this product.

Diet TBPN

@underscoredpodcasts

startupsventure-capitalvaluation