Netflix has a solid business, which is exactly the problem: the company increasingly seems like a business and not a franchise, at least in terms of growth.
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The banks were making so much money that they didn't need to change. And the customers had no other choice. It was a very stable but deeply inefficient equilibrium that only existed because there was no technology and no capital to disrupt it.
David Vélez — Invest Like the Best with Patrick O'Shaughnessy
The banks in Brazil at the time were making 50% return on equity. They had the highest banking fees in the world. They had interest rates on credit cards of 300% a year. And they were serving customers terribly. So the opportunity was enormous.
David Vélez — Invest Like the Best with Patrick O'Shaughnessy
The banks in Brazil were making 25-30% return on equity for decades, which is extraordinary. And they were doing that by charging customers incredibly high fees and interest rates. So the incumbent had an Achilles heel, which was that they were making too much money.
David Vélez — Invest Like the Best with Patrick O'Shaughnessy