
MI Rewind: Buying Winners Through Momentum Investing w/ Wes Gray
The Intrinsic Value Podcast - The Investor’s Podcast Network
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The Cost of Capital
Companies that have a strong price action can have a lower cost of capital. When Amazon bought Whole Foods in a stock purchase, their stock went up more than acquisition costs. Elon Musk could go raise money for electric vehicles for basically free because people love everything about it. Whereas if GM goes to the marketplace and tries to add get money into fund EV, they're going to have to pay people a return.
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