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

The Acquirers Podcast

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Valuing Growth Companies and the Potential of Tesla

Valuing growth companies involves considering future earnings and intrinsic value, rather than just current 12-month earnings. Rapidly growing companies may appear overvalued based on short-term measures, but could actually be undervalued when considering their future potential. It is important to assess a company's ability to meet future projections, as base rates and exceptions should both be taken into consideration. When investing in Tesla, the speaker acknowledged that their projections were against base rates, as they anticipated a significant increase in market cap by 2030. This perspective was supported by the idea of winner-take-most dynamics in the technology market, leading to the belief that Tesla, as a leading technology company, is positioned for significant growth and market dominance.

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