I love the company its mgmt team, fcf margin and potential growth. This is a long term hold for me and I’ll love to add to my current position if opportunity presents itself
It was a business I had a look at, but ultimately it's an area I wouldn't want to invest in. I've used them for travel before and it's a great idea, but for an investor I find there's too much risk from too many areas.
Great piece. Curious, what makes you choose 2.5% as terminal growth rate? Also ABNB shareholder, believing in the R&D enhancements of the company, its brand, and potential new verticals ⚡️
Thanks! I typically choose a terminate rate of 2-3%, so 2.5% is simply right in the middle. In my experience, when explicitly forecasting many years in the future, the terminal rate is not so important. For instance, were I to change it to 3%, my expected return in the base scenario would change from 10.9% to 11%.
I love the company its mgmt team, fcf margin and potential growth. This is a long term hold for me and I’ll love to add to my current position if opportunity presents itself
Well said, I couldn't agree more
Great breakdown, thanks for this.
Thanks for your comment 🙌
Good breakdown.
It was a business I had a look at, but ultimately it's an area I wouldn't want to invest in. I've used them for travel before and it's a great idea, but for an investor I find there's too much risk from too many areas.
That's fair enough.
How do you make those thumbnails
? Is it Ai?
Great piece. Curious, what makes you choose 2.5% as terminal growth rate? Also ABNB shareholder, believing in the R&D enhancements of the company, its brand, and potential new verticals ⚡️
Thanks! I typically choose a terminate rate of 2-3%, so 2.5% is simply right in the middle. In my experience, when explicitly forecasting many years in the future, the terminal rate is not so important. For instance, were I to change it to 3%, my expected return in the base scenario would change from 10.9% to 11%.
Hope that helps!
Yep that's right!