Peter Thiel On the Valuation of Companies

I’ve put down The Guermantes Way for a moment to crunch through Zero to One, a book by Peter Thiel on notes on startups, monopolies, and how to build the future. So far, it’s proven to be an interesting read (it’s also my first time “reading” a book through Audible– I don’t know how to feel about that yet- but more on that for another time).

In Zero to One, Thiel advises on critically measuring a company’s long -term profitability and urges us to contemplate the following questions:

1. Growth measurability vs. durability

  • Opt to see one’s market potential over its current  or “near-term” growth measurability, so.. an example would be having the prescience to value a company for its projected future market cash flow rather than solely looking at x company’s present market cap.

2. What does a company with large cash flows far into the future have in regards to qualitative characteristics?

  • proprietary technology
  • network effects
  • economies of scale
  • branding

It would be interesting to see how this applies to my present company and other businesses of interest:

barneys

supreme

a-cold-wall

alpha

For instance, what are the network effects of cult brands such as Supreme and emerging brands like Alpha Industries and A-COLD-WALL?

What kind of proprietary “innovations”do creative houses boast and have helped them become the monopolies they are today within their respective markets?

How do creative businesses navigate the land of commerce and manage to thrive when one quality exists in the midst of a dearth in others?

Bises,

Soo

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Arnold Bennett’s Mind-Warp Fundamentals For Seizing Your Day

The “great and profound mistake which my typical man makes in regard to his day,” “he persists in looking upon those hours from ten to six as ‘the day,’ to which the ten hours preceding them and the six hours following them are nothing but a prologue and epilogue.”… “utterly illogical and unhealthy.”” – How to Live on 24 hours a Day. – Arnold Bennett, English Writer

Bennett pleads to all of us salary men: Think of the hours beyond your 9-6. Think of the potential. Revisit your dreams. Create things. Create things again.