Chapter
The Network Effect and Business Strategies
41:29 - 45:53 (04:23)
The speaker discusses the importance of network effect and how it affects the value of businesses before cash flows come in, along with the risks and benefits of buying and selling during market crashes.
Clips
The strong network effect of marketplaces and network effect businesses creates value before traditional cash flows come into play, and the value is exponential when the network gets stronger, creating attractive investment opportunities.
41:29 - 43:52 (02:23)
Summary
The strong network effect of marketplaces and network effect businesses creates value before traditional cash flows come into play, and the value is exponential when the network gets stronger, creating attractive investment opportunities.
ChapterThe Network Effect and Business Strategies
Episode#141 - The 2020 MFM Award Show (with Andrew Wilkinson)
PodcastMy First Million
The speaker feels that people tend to cancel service contracts and big investments during crises, underestimating the risks involved, and this can affect businesses.
43:53 - 45:07 (01:13)
Summary
The speaker feels that people tend to cancel service contracts and big investments during crises, underestimating the risks involved, and this can affect businesses. Additionally, the speaker notes that the private sector can be lucrative with less risk involved.
ChapterThe Network Effect and Business Strategies
Episode#141 - The 2020 MFM Award Show (with Andrew Wilkinson)
PodcastMy First Million
After buying put options on the S&P 500, a group of investors saw a return of $5 million in just two weeks when the market dropped by 30%.
45:07 - 45:53 (00:45)
Summary
After buying put options on the S&P 500, a group of investors saw a return of $5 million in just two weeks when the market dropped by 30%. However, they soon realized they had made a mistake when the market began to recover and they had only intended the options as an insurance policy.