underscored — Underscored

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Tag:capital-efficiencyClear

The best investment is in the business that compounds the fastest while requiring the least capital to do so. Most people focus on the numerator and ignore the denominator.
— Charlie Munger, Berkshire Hathaway Annual Meeting Q&A (2010)

23h ago

The best investment is in the business that compounds the fastest while requiring the least reinvestment. Most people focus on the first part and ignore the second, which is why they end up with businesses that eat cash.

6d ago

The difference between a good business and a bad business is that a good business throws off cash and requires little capital to grow, while a bad business requires lots of capital and doesn't throw off much cash.

1w ago

stratechery.com

Amazon’s Durability

Amazon, more than any other company, actually operates with decade-long timeframes, consistently making real-world investments at massive scale that (1) convert their marginal costs into capital costs and (2) gain leverage on those capital costs by selling them to other businesses.

1w ago

notboring.co

Weekly Dose of Optimism #186

What's hard is making it cheap enough to compete with drilling a hole in the ground. Terraform's bet is that plummeting solar costs will get them there, and their qualified electrolyzer stack (under $100/kW) and full-scale reactor suggest they're heading in the right direction.

1mo ago

Underscored — save the words that stop you in your tracks.

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