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> One hint is that all the businesses that have the highest market capitalization earn the highest profit margins and profits. I’m far from expert here, but is
by lostlogin 2y ago
> One hint is that all the businesses that have the highest market capitalization earn the highest profit margins and profits.
I’m far from expert here, but is that too simplistic?
Where does perceived future value come into this? I’m thinking of companies like Amazon, which kept profit margins low while obviously having their shit together.
- lotsofpulp 2y agoActual results > perceived future profit margins > consistently low profit margins. https://companiesmarketcap.com/ https://companiesmarketcap.com/ Amazon clearly has a mix of a high profit margin business (AWS and other services) with a low profit margin business (retail). You will notice that most the top businesses are pretty much high profit margin tech and pharmaceutical businesses. Some oil and finance after that. And there are a few lower profit margin, but still large profit since the business is so large, but obviously, high profit margins and high profit is better than low profit margin and high profit.