the long term and so I enjoyed that particular part of the analytics of the financials but really serving people and their needs and and that's why I came into it now I can give you kind of myresume and my background and whatever certifications I have but I'm not sure that's the most important thing I think
So excellence in the core business is often the best form of service. But what about the financials ?
We were talking-- you were alluding to it, I think, before you began the talk. It's financials , it's branded, it's consumer companies, and others where he feels like he has a view on what the business is
going to be the same anymore. And from a financials perspective, the margin on a ticket sale in a movie theater is much higher than that of digital.
You're doing a DCF. You pull up the financials -- annual report, 10-K, 10-Q.
And the likelihood that they're going to do something completely out of the box is very rare, although you can still have very good executives. any cracks in the financials .
And this is the probably the central thing we're working on. There is a rating organization which, at the moment I think, does more harm than good called Charity Navigator. And it just presents the financials , so it--you know, how much--what are your administrative cost? What are your fund raising cost and--just looks so where you can get off the internal revenue code returned, or the internal revenue return. Well, looking only in financials should
one, not this one." Because next year he's got to go and sell 600 new customers. Now, where this gets you can start seeing this in the financials because I can tell you that the cost of getting 300 new customers costs significantly more than the cost of getting 100 new customers and having 200 customers that are existing and still paying you. And so, you're going to see that in the bottom line getting compressed. And this
So what does Beats offer that they couldn't do themselves? From an aesthetic perspective-- I think the financials , maybe there's a way that the financials make sense. But from a larger sense, aesthetically the Beats aesthetic is completely opposite of Apple's aesthetic.
Even if you're a non-profit organization, you still have to be accountable to some sort of profit and loss scenario. There's some sort of breakdown of the financials that you need to be accountable for. And I'm happy to tell you that the work of creating meaningful experiences actually does lead to increased employee retention, decreased customer acquisition cost, increased
These are entities that are not part of the annual report that you can look at, and all the SEC had to do when they used to look at their financials , just ask for a separate income statement balance sheet of these entities, and they would have saw they were hiding the losses.
Because when you're thinking about making an investment decision in a startup that is highly-- I mean, by definition really speculative-- you're not going to have years of company financials to look at. At least if it's an early stage company, a lot of it is about what is the future you're trying to build
and they compare fancy models against 1 over N when they're looking to allocate across S&P sectors. So you have utilities, financials , whatever, energy. We could use a fancy optimization model to try to pick and choose the weights, or we could just do 1 over N.
And the likelihood that they're going to do something completely out of the box is very rare, although you can still have very good executives. But it's not going to be enormous in terms of financials .
So sometimes, big decisions like this are made based on trusting of the business partner. Sometimes decisions like this are made based on the financials . Sometimes it's based on frankly having no other choice and needing a home run.
I mean, we have real problems here. We thought he was going to talk about financials , and profit margins, and bottom line stuff, and here is talking about something trivial like worker safety. So they challenged him.
And currency had moved again, we would have still even with the currency moment it was more than 100x. And so I decided to stop drinking the Kool Aid and do analysis of the financials at that time, but I basically never looked at it after that.
It describes the company, the financials , the products, the system, and I was supposed to get it done with the help of the lawyers, the accountants, the tax people.
it is uh it is very interesting because if you were to look at Playboy financials in fact it reflects that same
Some of these hacking the electric grid, hacking the financials , these kind of scenarios are things that we definitely have to worry about.
and you'll see the company, the quality of earnings is deteriorating. The future doesn't look good, using the own financials in the back. In other words, a positive picture in the front, weak financials in the back.
in various measures. But you still then have to make the translation to financials .
If you love the social aspect of it, you'll never do your financials .
Even value investors, you'd often hear something like, I really made a mistake owning the financials in 2007 and '08.
It's great. I love the idea of investing time, not financials in the beginning.
So there is a stock you wouldn't want to own. Or they'll be very bullish as usual, but in the back of the annual report, you look at the financials and so on and you'll see the company, the quality of earnings is deteriorating.
The future doesn't look good, using the own financials in the back. In other words, a positive picture in the front, weak financials in the back. You have income that may be recurring or non-recurring, one time.
It was selling at eight times earnings, had $200 million of cash, no debt, audited financials by Deloitte.
So you can get a more personal process at that level, hopefully, rather than a bureaucratic process that's just driven by financials .
You're doing a DCF. Because they're so set in their path, that you can pretty much value the company using last year's financials .
I mean you know what I'm talking about, I mean things are better now, but about two or three years ago at Google, yeah it wasn't a whole lot of fun seeing some of the financials
For employees, we have this monthly newsletter called, "Ask Anything," where it's literally that. They can ask -- employees can ask about financials or what brands we're gonna carry,
just presents the financials , so it--you know, how much--what are your administrative cost? What are your fund raising cost and--just looks so where you can get off the internal revenue code returned, or the internal revenue return. Well, looking only in financials should be looking and only at cost mainly, we'll be looking at one half of the balance sheet as a business. In every single, you know, what are you doing this--make any difference.