
Ep 362. Value Stock vs. Value Trap: The Importance of Business Momentum
Focused Compounding
00:00
Can They Really Raise Rates?
The risk to any subscription business is you can never raise rates high enough. It's the same problem that insurance companies have. You always want to raise rates lower than you should and lie average it out smoothly over a long period of time. So if inflation is ten % a year, you can't raise your rates ten% a year because raising them that much would lose some of your customers which are too expensive to reacquire.
Transcript
Play full episode