As I reflect today, I realize I will probably never be as confident about the world as I was in my early 20s. The hubris of early 20s, thankfully, faded away.
2/4 Individually, we all are suffering from n=1 problem, n being the number of lives we can have. The best solution to this problem is vicarious learning.
Liddell Hart said, “There is no excuse for anyone who is not illiterate if he is less than three thousand years old in mind”
3/4 Or consider what Niall Ferguson said, “The dead outnumber the living fourteen to one, and we ignore the accumulated experience of such a huge majority of mankind at our peril.”
Hopefully, by the time my 30s ends, I will gain at least a few hundred years of wisdom vicariously
4/4 Professionally, I am one of the fortunate ones who is not counting days to retirement. As long as I am intellectually able, I have absolutely no desire to retire ever.
Life was very generous in my 20s. I hope it continues.
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"At IAC, 2020 was a year of giving back. Not just giving back via spinoffs or distributions to the shareholders who have supported us, but giving back to the communities that have enabled us."
A very stakeholder friendly into :)
2/ $1 invested in Silver King ( $IAC predecessor) in 1995 would be $40 today, which is 16% CAGR over 25-yr i.e. 50% higher than $SPY
What an incredible track record.
3/ $ANGI
Fixed price model generated $160 Mn in 2020. More data points in terms of how fixed price perfectly fits in.
$ANGI, however, dropped ~10% after seeing lukewarm growth in January. I expect $IAC to really hone its focus on ANGI once Vimeo spin-off.
For the first time, GOOG segmented its cloud revenues/income separately, and overall revenue was >20% in 4Q which led to +7% after-hours reaction yesterday.
Here are my notes from earnings/press release.
2/ In the last quarter, here is the segment-wise growth:
Search +17.4%
YouTube ads +46.0%
Google Network Members +22.9%
Cloud +46.6%
Cloud more than doubled in the last two years.
Other bets losses $4.5 Bn in 2020 (vs $4.8 Bn in 2019)
3/ Operating margin in Q4 ~28%
FCF margin in Q4 ~30%
One of the big takeaways was the core business was even MORE profitable than most investors thought since cloud had -42.9% operating margin.
$GOOG's search business is a good comp for Fed in terms of "printing" money. JK.
"If you get it right, a few years after a surprising invention, the new thing has become normal. People yawn. And that yawn is the greatest compliment an inventor can receive."
The market collectively nodded to that with +0.6% reaction.
2/ The best owner-operator perhaps the world has ever seen finally takes a backseat from the Everything Store, but pretty sure he won't be chilling.
"In the Exec Chair role, I intend to focus my energies and attention on new products and early initiatives."
3/ Andy Jassy, who had been with $AMZN since 1997 and became CEO of AWS in 2016 , will be the new CEO in 3Q'21.
While market’s reaction has been at best lukewarm to FB’s earnings, it is difficult to find faults on operating performance, but the temperature of the feud with $AAPL is rising exponentially.
Here are my notes for Q4.
2/ DAU +11% YoY; MAU +12%; Family DAP +15%
Revenue +33% YoY; Ad revenue +31%
Europe +35%, North America +31%, APAC +29%, RoW +25%
# of impressions +25%, avg price/ad +5% (first-time in a long time)
Other revenue reached $886 mn, up 156% driven by Quest 2
3/ Operating margin +46% (+400 bps)
FCF $9.4 Bn, up ~90% YoY (what?!)
FCF margin +33.6%, up by ~1,000 bps (what?!)
Outlook: expect topline to be stable or modestly accelerate in 1H, but decelerate in 2H because of tough comps