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Tag Archives: Finance

Revenue and Runway – Why every cent matters

Tuesday, November 10, 2009

A month ago on Techcrunch, Michael Arrington wrote about “Twitter’s Revenue Dilemma”: “Your valuation can actually go down once you turn on revenue.”.
“Turning on revenue” frames it as a binary thing. You’re either making money or you’re not. It completely disregards the most important variable in finance: Time.
With the tiniest trickle of revenue you can [...]

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The DOW 10K priced as opportunity cost

Saturday, October 17, 2009

Economists love the concept of opportunity cost because it gives you a the real long-term value of an investment or purchase in relative terms – which is really the only way to calculate value. On Wednesday the DOW hit 10,000 again. The US financial press did their part to ring the bell while the banking [...]

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