Motley Fool Money The Madden Curse for Investors
Jul 30, 2024
In the latest discussion, Jason Hall, an investment analyst at The Motley Fool, teams up with Brian Feroldi, an expert in company life cycles. They dive into PayPal's recent earnings, exploring its growth strategies and promising segments like Venmo. The conversation takes a turn towards the unique challenges high-profile investors face, likening them to the 'Madden Curse.' They also analyze CrowdStrike's legal hurdles and its implications for investors. Finally, they use a frog metaphor to illustrate the life cycle of businesses, highlighting the importance of management decisions at each stage.
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PayPal's Turnaround
- PayPal's turnaround is evident in its improved transaction margin dollar growth since 2021.
- Focusing on engaged users in profitable markets seems to be paying off.
Ackman's IPO Challenge
- Bill Ackman's Pershing Square USA IPO, a closed-end fund, saw expectations drop significantly.
- This highlights the challenge of attracting retail investors.
The Madden Curse for Investors
- Bill Ackman’s closed end fund has been out for 10 years and returned an annualized 8%, including reinvested dividends.
- Cathie Wood’s ARK Innovation fund has underperformed US treasuries over the past five years.