5 The Last Mover Advantage Flashcards
1
Q
value of a business: simply stated
A
the value of a business is the sum of the money it will make in the future. (To properley value a business, you also have to discount those future cash flows to their present worth, since a given amount of money today is worth more than the same amount in the future.)
2
Q
what does a company with large cash flows in the future look like? What four qualitative characteristics do they usually share?
A
- Proprietary Technology
- Network Effects
- Economies of Scale
- Branding
3
Q
if you focus on near term growth above all else you will miss the most important question you should be asking….?
A
will this business still be around a decade from now?
