Texas Pacific Land Corp. is the most profitable public business I've ever seen.
Over the past 12 months, the company had 83% EBIT margins and 86% EBITDA margins.
So why are they so profitable?
[THREAD] ⬇️
1/ It all started 150 years ago.
In 1871, Texas & Pacific Railroad Company (T&P) was created through a federal charter to build a transcontinental railroad, extending west into what is now California, Texas, Arizona and New Mexico.
2/ After a decade, T&P had completed nearly 1,000 miles of track, giving them 3.5 million acres of land.
7 years later, T&P had gone bankrupt and that land was placed into a trust for the bondholders of the railroad.
4 interesting sections from Cloudflare's investor day
1. Why they don't include Workers in the TAM 2. Why they are excited about Shopify as a partner 3. More optionality in connectivity down the road 4. Why Zscaler is inferior
1. They don't want to add Workers into the TAM for fear of "losing credibility"
Basically, the numbers get too big.
2. After studying platforms, one shortcut is getting embedded in another platform.
That's why they are working closely with Shopify. It's a shortcut to get more devs familiar with Workers.
In July 2020, Nubank bought Cognitect, a software consultancy that created the programming language, Clojure.
Why does this matter?
In Nubank's 1st earnings call, the CEO said:
"We build our own technology, including our proprietary core banking system using our own programming language & that ultimately gives us the ability to control our destiny, continuing to scale our platform with lower and lower cost"
3/5
When Nubank started, the team used a database called Datomic which created an audit trail of all the data. And Datomic was built in the Clojure language.