Ep 414. Normalizing Supply-Driven, Demand-Driven, and Bond-Like Earnings
Focused Compounding
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Determining Normalized Earnings for a Company in a Supply-Driven, Demand-Driven Industry
This chapter dives into the process of determining normalized earnings for a company like Southwest, taking into account factors like the price of oil, the economy, and demand. It emphasizes the importance of tracking aircraft deliveries and capacity as indicators of supply growth, and highlights the significance of long-term averages and industry rivalry.
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