I don't return the company's cash to investors because
CASH IS AN ENTERPRISE VALUE MULTIPLIER
Consider valuation in these scenarios
* $200m cash, 24mos of runway w/ 0 revenue.
* $50m, 6mos, 0
* $10m, 1mo, 0
It's insurance and optionality. It's the ability to play the long game
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If only. In hindsight, it should have been predictable at the point they gave up on their brands and conceded to be commodity services. It is not a living business anymore but a carcass for the parasites to feed from. Now there are only bones and they demand a new host.
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The haters will hate, but you're not wrong!
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There's nothing wrong with holding cash balances. It's a way for individuals & firms to deal with uncertainty, an ever-present feature of the future. Cash is useful in crises & allows you to take advantage of good investment opportunities when they come up
mises.org/library/yield-
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A good general of rule of thumb is only buy something that you can afford two of in cash.
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I'm not opposed to it but there are usually better uses of capital. As a marketplace business, I prefer to have more stakeholders than fewer. We would have to have an unbelievably strong balance sheet, and the shares would have to be hugely undervalued.
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Yes, it makes sense, but please use a greater percentage of it to improve your trading engine's reliability and ultimately your enterprise's value.
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Things have been running smoothly lately, despite the high volatility and trading volume. We made huge improvements in early 2018, and many more throughout 2018 and 2019. We'll keep at it though -- always more to do!
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The tactical nuke protection too: the ability to not become a sucker when another tries to pull the rug from under you.
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