Tren Griffin @trengriffin I work for Microsoft. Previously I was a partner at Eagle River, a private equity firm established by Craig McCaw. I am on the board of directors of Kymeta. Jan. 12, 2020 1 min read

25iQ  https://25iq.com/2017/07/15/amazon-prime-and-other-subscription-businesses-how-do-you-value-a-subscriber/ 
25iQ  https://25iq.com/2016/12/31/a-half-dozen-ways-to-look-at-the-unit-economics-of-a-business/ 
CAC:  https://25iq.com/2016/12/09/why-is-customer-acquisition-cost-cac-like-a-belly-button/ 
Churn:  https://25iq.com/2017/01/27/everyone-poops-and-has-customer-churn-and-a-dozen-notes/ 
GM:  https://25iq.com/2017/02/04/gross-margin-for-fun-and-profit-involves-beer-and-music-streaming/ 
Gurley  http://abovethecrowd.com/2015/02/25/investors-beware/ 
Skok:  http://www.forentrepreneurs.com/ltv/ 
Theta Equity:  https://www.thetaequity.com 

"25iQ + term" in search engine.

If an investor or business person is willing to do the work it is possible to create an analytical edge by knowing the difference between: (1) GAAP earnings; and (2) actual shareholder value. When this work is done successfully, the fact that people are lazy is arbitraged.

Even if you never own a share of stock in a public company, this idea about focusing on actual shareholder value is applicable to every business. You can't ignore GAAP income and it can be useful, but you can also arbitrage other people not understanding its limitations.

Munger


You can follow @trengriffin.



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