Finance Flashcards
1
Q
Time value of money
A
MOIC is what matters, IRR is ephemeral
2
Q
Compounding
A
8th wonder of the world
3
Q
Efficiency
A
In conversion (margin) and in funds employed
4
Q
Extreme probabilities
A
- hard to hit the gold twice (low % of artists with >1 hit song)
- if you hit it used the proceeds and effects wisely to build a recurring advantage, solid base and wide moat to defend