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Tren Griffin @trengriffin
, 4 tweets, 2 min read Read on Twitter
Farfetch is a platform. McCarthy explains how the market values a platform using a bottoms up customer-based analysis, which recognizes that the business is creating annuity value. Always remember in doing a valuation: "Cash rules everything around me" (CREAM)!
"The net present value of all future revenue a new Farfetch customer generates for the firm is an eye-popping ~$4K. Farfetch is spending about ~$100 for each new customer it acquires." Trying to value a platform with a P/E ratio is like using milk as an engine lubricant.
A platform with high gross margins makes life running a business better. "Farfetch’s gross margin remains constant at its current level of 51.4%." What other platform has high NPV per customer? 25iq.com/2017/07/15/ama…
A key question in valuing any platform is TAM. How big is the Farfetch total addressable market? 25iq.com/2016/10/22/a-d… Farfetch will eventually hit an "invisible asymptote." Not every market is as big as AMZN Prime. Some platforms have a small TAM. Some don't. It depends.
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"According to the survey results, the median pay for full-time writers was $20,300 in 2017, and that number decreased to $6,080 when part-time writers were considered. The latter figure reflects a 42 percent drop since 2009, when the median was $10,500."
In my blog post on writing books I wrote: "6. Don’t expect to earn more than the minimum wage and be thrilled if you earn more." google.com/amp/s/25iq.com…
"In Mémoires (1759), Voltaire recalled how in his youth he had come across so many writers who were “penniless and held in contempt” that “he had decided not to add to their number.” laphamsquarterly.org/luck/voltaires… "Thanks to his fortune he was free to pursue his writerly life."
Read 3 tweets
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"Companies can lose a lot of money in their early years but be wonderful businesses if they are acquiring customers with long lives and strong variable margins."

But some businesses just do the losing money part. A critical skill is knowing the difference between the two types.
Customer-based corporate valuation (CBCV) = valuing a business on a "bottoms up" basis by valuing the customers. In a subscription business especially, this is an essential process if you want to understand if real value is being created despite a lack of current GAAP earnings.
"CBCV isn’t about being profitable from day one. It’s about variable profitability in net present value terms (while still being mindful of fixed cost overhead of course!)" Determining whether a specific business is a delicious cheesecake or a turd requires detective work.
Read 6 tweets
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“The Fasten Seat Belt sign is now illuminated. If you haven’t already done so, please check your cash and cash equivalent balances. Please lower your burn rate and make sure your defensive investments are in their full upright position.”
“If you find yourself needing an emergency exit from illiquid investments, please read carefully the special instructions card. Cash is more king than ever. If you can’t handle the haircut you are about to experience, please ask someone to do the selling to raise cash for you.”
“We remind you this remains an uncertain and no sympathy correction. No one knows anything for sure as is usual. Crying and whining is prohibited, including in the lavatories. Tampering with, disabling or destroying your brokerage statements is pointless and prohibited by law.”
Read 5 tweets

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#Analysis: Ending #BirthrightCitizenship for the children of illegal immigrants and birth tourists has long been the crown jewel of pro-sovereignty immigration reformers. It's about interpreting the #14Amendment of the #Constitution correctly. Thread.
First, to quote the great Ann Coulter, it's laughable to think that any Founder, Framer or Amender of the Constitution intended for American citizenship to be the prize in a game of Red Rover with the Border Patrol. We're a nation of laws, after all.
Second, #14Amendment was one of three emancipation-related amendments to the #Constitution, designed to grant citizenship to former slaves and their children. The congressional record shows nobody believed 600,000 Americans died to give Congress the chance to open the borders.
Read 5 tweets
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Lets examine this tweet fpr a lesson on how marxists argue:

2/
 Notice how he begins by saying @SamHarrisOrg makes Logic and Honesty...so thats the set up... he's going to attack the idea that Sam Harris is honest and logical. So what doe he say to prove Sam is not honest and logical?
3/he claims that @SamHarrisOrg "pushes only ideas that defend the status quo, the rich and the powerful."

Think about that for a second, he attacks Sam based on who @Panchopperrrrrr thinks s
Sam's ideas benefit...he does not attack Sam based on the TRUTH OR FALSITY OF THE IDEAS!
Read 6 tweets
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My Dad, my Grandpas, and several other people in my family have been holding ceremonies, teaching language and culture (in classrooms & at home) since before I was born. We grew up around people who were/are "in need of healing", we all those people.
I have hardly ever seen my Dad, Grandpas, Auntie, or anyone who was heading up a ceremony, sweat, or preparing someone for Fasting turn someone in need away. There are guidelines and it's hardwork, but I've always known those in need and asking for help are the ones pulled in.
It brings everyone together, everyone can heal, we mourn and grieve together, it cultivates an environment where honesty is embraced, even with those experiences that carry the heaviest shame and guilt.
Read 9 tweets
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1) This is a thread on this idea that ‘we should teach all students in every discipline to think like scientists.’ Please share this widely, because this is absolutely crucial, and speaks to a pernicious misunderstanding. scientificamerican.com/article/we-sho…
2) I agree with just about every word in this article. It’s just that the framing is wrong, and kidnaps the core mode of analysis in humanistic disciplines and calls it ‘thinking like a scientist.’ For example, the crux of the argument:
3) Being inquisitive, weighing the quality and ideological bent of evidence, and changing our minds according to the evidence is not ‘thinking like a scientist.’ It’s the *core* method of humanistic study. It may also be as important to science, but it doesn’t belong to science.
Read 15 tweets
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Based on @annie_vams request via @segalink TL on what makes a business grow and successful. Today’s #CEOMindset would be titled GROWING A BUSINESS TO SUCCESS (Part One).

Kindly RT for others to benefit.
There’s no specific method to growing a specific business and nothing is guaranteed. Meanwhile there are ways to reach your growth target which would catapult your business to success. Most of these tips doesn’t work like magic, it takes time, patience, and perseverance.
1.Working the the right people: Since the beginning of this year, I have hired two people and fire them. The reason for my decision is based on their incompetence and trust issues. I hired these people based on emotions without due diligence and not putting my business first.
Read 14 tweets
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Ran an errand on foot — the best way to see a city — and I noted more business closings along a major highway inside the Seattle city limits. More open spaces/brownfields/derelict buildings to show off, I guess.
So what's the cause? High taxes/costs of doing business? Given that property taxes along that stretch are about 1% of property values, is that reasonable?
The parcel I noticed is valued at $610,000 for about 12,197 ft^2. Call me Kreskin but my guess was that the taxes would be about $6,000 (1%) and they are in fact $6,895.20.
Read 20 tweets

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