RT Boring_Business (@BoringBiz_)Imagine spending 14 hours a day projecting cash flows and learning business fundamentals when you could have just bought a piece of rock instead https://t.co/xifZll2qAl ...

RT gphummer.eth 🦇🔊 (@gphummer)Last year, a number of VCs and crypto influencers were expressing “concern” over Ethereum’s cash flows. Alternate chains (whose cash flows are now collapsing and/or flowing to more centralized competitors) were extracting millions of dollars per day in memecoin MEV, acting like a Vegas casino on steroids.The premise underlying this critique was that ETH should be viewed and valued as a tech stock. Somehow, this same critique never applied to Bitcoin, which now only has $5B of e ...

Infrastructure Investment & Demand - Concerns exist regarding the scale of infrastructure investment and potential capital loss [1] - Explosive demand growth is evident, requiring careful valuation checks [2] - Infrastructure wave is supported by real demand growth and cash flows, particularly from major hyperscalers [2][3] - Supply constraints persist despite significant spending [3] - The infrastructure theme is long-term, with potential upsets along the way [3] Debt & Funding - Debt is involved in many infrastructure deals, extending beyond the four major hyperscalers [4][5] - Bond investors are betting on future revenue generation to repay bonds [6] - The infrastructure wave is impacting the corporate bond market, utilities, and both public and private sectors [7] - A 40-year bond yielded approximately 1.65 percentage points over Treasuries [7] Capital Spending & Energy - Markets have been rewarding large capital spending commitments [9] - Current spending is grounded in real infrastructure, chip spending, and data centers, unlike the dot-com bubble [10] - The global energy sector's ability to meet demand is a trillion-dollar question [11] - Data center power commitments are substantial, equivalent to powering New York, Chicago, and Los Angeles for a year [11] - The aged infrastructure grid requires upgrades, with potential solutions like nuclear and natural gas power expected in the 2030s [12] - Efficiency gains and gradual demand increases may prevent a bottleneck in the near term [12][13] - Compute costs have already decreased by 98% [13]

Perpetuity is a continuous stream of identical cash flows with no end, such as payments from an annuity. https://t.co/GxqMVtSGhl ...

A news alert on Comcast spin-off Versent, which will be our parent company. The news is breaking. Julia Borston has the details.Julia, Brian, that's right. SEC filing here. Comcast's spin-off Versent will be listed on the NASDAQ under the ticker VSNT.The company saying in the SEC filing, we are well capitalized business bolstered by multiple revenue streams, significant operating cash flows, and a robust balance sheet. Our cash flow profile and ample liquidity will afford us significant optionality in inves ...

Investment Focus - The key to evaluating companies like Tesla is to focus on future cash flows rather than past performance [1] - For companies like Tesla, the next 10 years are the most important [1] Company Strategy - The analysis emphasizes the importance of long-term growth potential over short-term trends for Tesla [1]

Market Transformation - The S&P 500 has transitioned from a discounting mechanism for future cash flows used by the wealthy to a new pension scheme for the US, a shift that began with the introduction of 401(k) plans [1] - The S&P 500 is now effectively a public good, backed by Congress, the Executive branch, and the Federal Reserve [2] Valuation and Investment Strategy - Traditional valuation methods, such as a P/E ratio of 17, are no longer appropriate for the S&P 500 due to government backing and its role as a modern pension scheme [2] - The S&P 500 deserves a higher multiple, potentially in the 20s or even 30s, given its explicit and implicit government support and its fundamental backing of the bond market [2] - Analyzing markets using 20th-century principles is outdated and ineffective [3]

Core Viewpoint - Pinterest stock (PINS) is currently valued at 11 times earnings, making it more attractive compared to Johnson & Johnson's stock, which is valued at 17 times earnings. However, Pinterest's stock has shown significant volatility during market downturns, raising concerns about its stability and risk profile [2][3]. Group 1: Growth - Pinterest's revenue is growing at 18%, significantly outpacing Johnson & Johnson's revenue growth of 4%. Over the last three years, Pinterest's average growth has been 12%, while Johnson & Johnson's has been below 4% [5]. - The company is well-positioned for substantial growth through its visual discovery platform, with an advertising business expected to thrive due to enhanced shopping features and improved targeting [6]. - Pinterest's expanding creator economy, along with international expansion and growing e-commerce integrations, is projected to accelerate revenue growth by transforming its user base into shopping-centric experiences [7]. Group 2: Cash Flows - Pinterest demonstrates robust cash flow, with an average operating cash flow (OCF) margin of 26%, comparable to Johnson & Johnson's 28%. Additionally, Pinterest's free cash flow margin of 25% surpasses Johnson & Johnson's 20% [5]. Group 3: Financial Stability - Johnson & Johnson holds a substantial $39 billion in cash, with cash as a percentage of assets at 20%, compared to Pinterest's $2.5 billion cash reserve and 11% [5]. - Pinterest has minimal debt, with only $144 million, resulting in a debt-to-equity ratio of 0.1%, significantly better than Johnson & Johnson's 14% and $52 billion in debt [5]. Group 4: Risks - Pinterest faces potential risks that could hinder its growth, including a deceleration of revenue growth due to macroeconomic pressures affecting advertising budgets [8]. - Execution risks are present regarding Pinterest's international expansion and efforts to support creators, which could challenge profitability if expected returns are not realized [9].