I disagree with the meme on stock-based compensation. It's a common joke among value investors. Stock options are one of the best tool to attract and retain top talent and to align incentives. Coca-Cola has stock based compensation of ~2.4% of their net income, NVIDIA of about 17.5%. Now what company are you more excited about? And I took Coca-Cola just as an example, many companies that have lost their entrepreneurial spirit and growth trajectory look like that. Of course, like every tool, it should not be misused.
It's a great tool to attract talent, but it's also a cost for shareholders.
When you look at the valuation of a company, you should always subtract stock-based compensation from the company's free cash flow to get a correct view on the company.
right on I have already paid you in large part for the reading material without signing up an email everytime :D How can i just find all the information you use for advertising purposes in pdf form so i can just read it. Seems like a large part of the value would be that for me
I disagree with the meme on stock-based compensation. It's a common joke among value investors. Stock options are one of the best tool to attract and retain top talent and to align incentives. Coca-Cola has stock based compensation of ~2.4% of their net income, NVIDIA of about 17.5%. Now what company are you more excited about? And I took Coca-Cola just as an example, many companies that have lost their entrepreneurial spirit and growth trajectory look like that. Of course, like every tool, it should not be misused.
It's a great tool to attract talent, but it's also a cost for shareholders.
When you look at the valuation of a company, you should always subtract stock-based compensation from the company's free cash flow to get a correct view on the company.
What is the Div Yield % of your portfolio :)?
Quite low. We focus on companies that. can reinvest most of their FCF in organic growth. :)
right on I have already paid you in large part for the reading material without signing up an email everytime :D How can i just find all the information you use for advertising purposes in pdf form so i can just read it. Seems like a large part of the value would be that for me
Hi Dylan,
Made a mistake and added the wrong link in this article. You can find all PDFs here: https://www.compoundingquality.net/p/readingmaterial
Thank you sir!