389 | The Language of Business
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Is There a Multiplier?
Not all businesses are created equally. Candy is something that people buy in bad times. A company called coin base recently came public, the crypto market was booming and they were making billions upon billions of dollars because interest in their company was so high. More recently, in the most recent a quarter, coin bases profits absolutely collapsed due to the entire crypto market being down. If you take a very cyclical company such as a home builder, well, in boom times, when the housing market is on fire, companies can rake in huge amounts of profit. But if i was an investor, i wouldn't value that profit very much because i know once the cycle turns, that company could be going from
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