In this episode, John Mihaljevic hosts a discussion of:
How equity incentives affect long-term returns: Phil Ordway takes a look at some of the more excessive equity-based compensation practices at public companies, particularly in the tech sector, and how they may dilute long-term investors' returns. We discuss Twitter and selected other case studies.
Reverse DCF analysis as an analytical tool: Elliot Turner explains how he uses so-called "reverse" discounted cash flow (DCF) models in order to isolate the key variables that drive a company's valuation. One of Elliot's preferred analytical tools, reverse DCFs enable him to assess market-implied expectations and to develop a high-conviction variant thesis.
Chris Bloomstran rejoins us in the next episode.
Enjoy the discussion!
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