@sachinvats When the far left and the populist right independently grab for the same lever, that lever gets pulled.
But that goes against the commoditization thesis, right?
"Anthropic is eating our lunch, so we must stop them." I was seriously considering starting a position in $MSFT on monday... but this sounds like begging for regulation on a competitor thats beating you.
Right, I agree net income flows into retained earnings and retained earnings increases shareholder equity/book value.
My question is about the growth rate. If SoFi earns $825M on $9.2B of tangible book, then retained earnings add about 9% to tangible book.
So even if earnings grow 40%, TBV growth should be tied to retained earnings divided by beginning TBV basically ROTCE not the earnings growth rate itself.
Starting tangible book: $9.2B
Net income: $825M
Then book value increases by $825M, not by 40%.
So:
$825M / $9.2B = ~9% book value growth
@PangaStock@amitisinvesting Plus, you are the one making the argument that China isn't importing anything useful. My point is that food and energy are quite important.