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The Acquirers Podcast cover image

Value After Hours S06 E01: Christopher Tsai on $TSLA, growth investing, and his mentor Ron Baron

The Acquirers Podcast

NOTE

Valuing Growth Companies and the Potential of Tesla

Valuing growth companies requires looking beyond current earnings and focusing on future potential. Rapidly growing companies may appear overvalued based on current earnings but may actually be undervalued when considering future earnings potential. Management's job is to risk today's assets for tomorrow's cash flows, especially in early-stage companies where future profitability is obscured. When considering Tesla, the investment was against base rates due to its projected significant market cap growth by 2030. Despite the uncertainty, competitive dynamics in certain markets may favor a winner-take-most or winner-take-all situation, presenting potential value opportunities.

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