Sebatian

All Gods Creatures created Equally

[Darrell Lerner @DarrellLerner]

ChatGPT is a passive income superpower.

I wrote a short guide with the Best ChatGPT-4 Business Ideas working RIGHT NOW that'll earn $1,000/month with 1 hour of work.

Like + comment "Send" and I'll send it to you

(Must be following so I can DM)

[Rich Falk-Wallace @richfalkwallace]

An entire MBA fits on one page.

But you better know the math cold.

Like & comment if you want the excel.

6 topics:

*1) Unit economics*

This builds from product-level unit economics to company financials.

Quantity per unit, growth in units.

Price per unit, growth in pricing.

Cost per unit, marketing spend per unit.

Get you return on ad spend (ROAS), customer acquisition cost (CAC), LTV/CAC, gross margins, unit contribution margins, and more.

This model sets up two diverging products:

A higher gross margin (GM), higher marking cost, low pricing power, low growth product.

Against a lower GM, better pricing power, better growing, lower unit market cost product.

To show how the dynamics of the two play out over time.

*2) Accounting*

Unit drivers flow into revenue, variable COGS, and variable SG&A.

Then to EBITDA, EBIT, EBT, Net income & EPS.

Simple cash flow statements & balance sheets reconcile D&A to inflation-adjusted replacement CapEx, debt levels, & GAAP PP&E.

You have to be fluent in accounting to look at public companies.

Not because accounting itself matters.

But because accounting can obscure what matters.

And your task it to translate GAAP into meaningful business logic.

*3) Operating ratios*

Unit drivers output financials, financials output overall business ratios.

Revenue growth, EBITDA growth, EBITDA margins.

Contribution margins (= change in profit over change in revenue).

Net debt-to-EBITDA, net debt % of EV.

*4) Valuation*

You can drive valuation on multiples or a DCF.

Which are equivalent:

The discount rate minus the growth rate determines the 'terminal multiple.'

Using a P/E instead of a DCF simply uses next year as the terminal value.

This model drives value from the DCF, and maps that to the multiples to show how they connect.

*5) Corporate finance & DCFs*

DCF math attached using the CAPM.

The summary is a beta from historical returns, add the cost of debt.

To get the WACC - the theoretically correct discount rate.

DCFs are extremely assumption laden - you can get out almost whatever you want.

But realistically.

Your banker (or analyst) will make the math work out to a 7-13% discount rate.

Depending on the risks, industry, markets - and what they want to achieve.

*6) Sensitivities & the hard part*

The last section sensitizes the equity value and multiples to unit and price growth.

Bringing unit drivers full circle to valuation outcomes.

Ultimately, the hard part isn't the math.

You have to be fluent in the math, its nuances and its limitations.

If not, you will lose out to those who are.

But once you are, you also have to shift focus.

To the hard part.

Which is always in filling in the numbers.

If you're investing, that means thoughtful views on unit drivers; on how, when, and why they shift.

And if you're building, it means making the numbers on the page happen.

That's all for now.

Like & comment if you want the excel.

[Koshiek Karan @iamkoshiek]

Purple Group (EasyEquities) stock crashed more 65% in the last year wiping out R2.5bn in shareholder value

The best part? A crew of EE Executives dumped R100m in stock across the past 18 months while retail investors burned

Even the CEO's wife sold off stock! [Thread]

[Sizwe SikaMusi @SizweLo]

How (And Why) Brazil Privatised State-Owned Enterprises

[Thread]

[Sebatian @Sebatia36690100]

@EMukumbo Appreciate your posts and heads up 👌🏾👌🏾👌🏾 a true educator of the masses.

P.S There are a couple of Instagram Pages that are fake accounts with your pics etc try to sell Forex things etc, but have reported and blocked but pls be aware

[Ess @EMukumbo]

Impact Investing is another great way to diversify an investment portfolio.On the 17th of November 2022, I invested R7k in lettuce stacks and R7k in Solar Panels using the Fedgroup app. This is the income I have started receiving from this investment. In December 2022 I received

[Tansu Yegen @TansuYegen]

No wayyyyy! So easy😊

[Kenny | Accent Investing @AccentInvesting]

By the age of 30, you have to understand these financial rules if you want to be in control of your finances:

[Harsh Makadia @MakadiaHarsh]

AI tools you cannot miss:

1. Image: https://t.co/YrYhyjopsm
2. Marketing: https://t.co/X18TCidDvd
3. Recording: https://t.co/pkQKQFXYxB
4. Video: https://t.co/pHaFycKZbX
5. Twitter: https://t.co/DmWEXuJybp
6. Presentation: https://t.co/7E52wQLQ5L
7. Chat: https://t.co/Zz2W3MtQ06

[Kenneth Todd @kennethtodd]

ChatGPT isn’t the only AI-powered website…

Here are 14 AI websites that feel illegal to know about:

[Sebatian @Sebatia36690100]

@nozi_vanheerden Great post and very informative, thank you 👍🏽. Question: how do you keep track of when dividends are coming? Or is there a site that has such type of information?

[Schalk Louw | Mr Louwcal 🇿🇦 @SchalkLouw]

#ETF Theme of the Year. #Oil helping #Commodities win 2022 by a mile. #Value was more resilient, while #Diversification shows its strength during turbulent times.

And how the mighty have fallen - US #Growth lost a third of its value in 2022.

Top3: $DJP $IWVL $AOR
Last: $VUG

[Sebatian @Sebatia36690100]

@Cryptodev_Arg 😂😂😂😂😂

[Sebatian @Sebatia36690100]

@EMukumbo Awesome, I gonna try the Solar Panels and Moringa Trees 🌲

[Sebatian @Sebatia36690100]

@EMukumbo Thank you for your timely response Ess, your page is truly a knowledge hub. Do you already have investments in the alternative farming investments on Fedgroup?

[Sebatian @Sebatia36690100]

@EMukumbo What are Lettuce Stacks?

[Sebatian @Sebatia36690100]

@MoneyRehab_ Is the R23 800 interest income exemption per year or ?

[Sebatian @Sebatia36690100]

@MoneyRehab_ Pls explain the 27.5% / R350k retirement contributions?

[Mr. Money Rehab 💰🦺📈 @MoneyRehab_]

The cold truth is that you need LOTS of money to be able to take advantage of all the benefits & exemptions you get for investing in your future:

- R36 000 TFSA limit
- 27.5%/R350k retirement contributions
- R23 800 interest income tax exemption

Current SA savings rate is 0.5%

[Honest Money @HonestMoneyPod]

We’ll be wrapping up this year with a BOOK GIVEAWAY to show our gratitude for all the love and support received in 2022 🎁

Follow & RT this post to stand a chance of winning 1 of 2 signed copies of @WarrenIngram’s new book “Global Investing Made Easy”.

T&Cs Apply.