Unit Economics – A Modern Value Approach | Value Investing News

Unit Economics – A Modern Value Approach

  • I heard your podcast with Ryan Reeves and he had this little quote of yours right at the start which blew my mind a little bit.
  • Bluegrass: They just told us, they’re going to spend cap X of whatever $10 million to build this store and the returns they expect to get are X, the store will pay back itself in two or three years, there’s going to be a drag of cash going out the door while they build the store.
  • When you transition that capital model to today’s framework or I should say, what’s more common today, where a lot of currently successful and growing businesses don’t need tangible assets, to invest reinvest in their business they’re not building a Dollar general store, or a Costco store, or a Walmart store, they’re acquiring a customer, they’re acquiring a digital customer.
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