THE FINANCE GHOST: Why Bidcorp’s fattening margins are worth a second look

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Revenue growth is meaningless if every sale is made at a loss. It’s margins that ultimately pay the bills — just ask Prosus, writes FinanceGhost.

In a bull market with cheap money thanks to low interest rates, many investors are interested only in revenue growth. This is a venture capitalist way of thinking: grow the top line and the rest will come out in the wash.

This is dangerous. The risk is that a strong share price performance can be mistaken for an attractive fundamental thesis, a classic “rising tide that lifts all boats” scenario. There are many investors and even professional fund managers who looked like rock stars during the pandemic, yet performance was driven almost entirely by macro conditions. When absolutely everything is going up, it’s not hard to generate a positive return...

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THE FINANCE GHOST: Why Bidcorp’s fattening margins are worth a second lookRevenue growth is meaningless if every sale is made at a loss. It’s margins that ultimately pay the bills — just ask Prosus, writes FinanceGhost.
Source: FinancialMail - 🏆 20. / 63 Read more »

THE FINANCE GHOST: Why Bidcorp’s fattening margins are worth a second lookRevenue growth is meaningless if every sale is made at a loss. It’s margins that ultimately pay the bills — just ask Prosus
Source: FinancialMail - 🏆 20. / 63 Read more »