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This is a much tighter circle than any of us should be comfortable with. There are some horrible examples of companies investing in their costumers and then lo
by krupan 10mo ago
This is a much tighter circle than any of us should be comfortable with. There are some horrible examples of companies investing in their costumers and then losing big when those customers fail.
- fooker 10mo agoIt’s a medium risk high reward strategy. You only fail here if all the customers fail, which admittedly there’s a chance of. If one succeeds, and grows 10-100x, you are profitable. If a few succeed, you double your market cap.
- krupan 10mo agoBusinesses fail long before all their customers fail. If Nvidia's sales decline and they lose their billions of dollars in investments at the same time you better believe their stock will tank. I'm not sure how you decided this is only medium risk. Especially when they have invested in customers with no profits (OpenAI) and/or severely depressed growth (Intel)
- fooker 10mo agoI did not say Nvidia does not have risk. I specifically meant this circular investment idea is medium risk. Of course Nvidia can tank if sales decline.