Chapter
Profitable IPOs are becoming rare
1:20:17 - 1:26:24 (06:06)
The percentage of profitable companies IPOing has significantly decreased from 90% in the past to 5% in 2020-2021, according to a podcast discussion. The talk also highlighted the disparity between gaming and virtual experience companies, along with the trading multiples of successful companies, like Apple, currently trading at a low multiple of their earnings.
Clips
In this episode, the speaker discusses the importance of valuing companies on free cash flow and the benefits it provides to a company when being evaluated by investors.
1:20:17 - 1:22:43 (02:25)
Summary
In this episode, the speaker discusses the importance of valuing companies on free cash flow and the benefits it provides to a company when being evaluated by investors.
ChapterProfitable IPOs are becoming rare
Episode#651: Legendary Investor Bill Gurley on Investing Rules, Finding Outliers, Insights from Jeff Bezos and Howard Marks, Must-Read Books, Creating True Competitive Advantages, Open-Source Strategies, Adapting Mental Models to New Realities, and More
PodcastThe Tim Ferriss Show
The focus on virtual experiences has led to the rise of profitable games and products that offer a more immersive experience, but it also creates a cycle that favors the easier-to-build, less profitable versions.
1:22:43 - 1:26:24 (03:40)
Summary
The focus on virtual experiences has led to the rise of profitable games and products that offer a more immersive experience, but it also creates a cycle that favors the easier-to-build, less profitable versions. Facebook's attempts to enter this space with virtual board meetings may not make much sense in light of this trend.