The second negative factor, far more telling, is our size. Our equity capital is more than twenty times what it was only ten years ago. And an iron law of business is that growth eventually dampens exceptional economics…
The second negative factor, far more telling, is our size. Our equity capital is more than twenty times what it was only ten years ago. And an iron law of business is that growth eventually dampens exceptional economics…
In past reports I have noted that book value at most companies differs widely from intrinsic business value - the number that really counts for owners. In our own case, however, book value has served for more than a…
The second negative factor, far more telling, is our size. Our equity capital is more than twenty times what it was only ten years ago. And an iron law of business is that growth eventually dampens exceptional economics…
Pinduoduo will invest for the long term even when that looks aggressive or conservative.
Context
Huang told investors that Pinduoduo would sometimes look aggressive and sometimes conservative, but that both styles followed one logic: focusing on the institution's intrinsic value. He warned that long-term vision might not produce short-term returns and that the data could be volatile. The letter asks investors to judge the company by the durability of its value creation rather than quarterly noise.
Today's question
What was your last aggressive-looking long-term investment—and are you prepared for short-term misunderstanding?