Letter # 84

Lose a few customers that used to pay a few dollars a month, and your company has suddenly lost USD200 billion in market cap (down 70%). By now, you must have read all there is to read about the Netflix saga, but today, I give the math around this seemingly crazy move. Change only a few assumptions, and it all starts making sense.

Stranger still, is what we find when we run a similar exercise on a few Indian companies (in sectors one wouldn’t have normally considered checking). Read here:

Disclaimers:
Information in this letter is not intended to be, nor should it be construed as investment, tax or legal advice, or an offer to sell, or a solicitation of any offer to make investments with Buoyant Capital. Prospective investors should rely solely on the Disclosure Document filed with SEBI. Any description involving investment examples, statistical analysis or investment strategies are provided for illustration purposes only – and will not apply in all situations and may be changed at the discretion of the principal officer. Certain information has been provided and/or based on third-party sources and although believed to be reliable, has not been independently verified; the investment managers make no express warranty as to its completeness or accuracy, nor can it accept responsibility for errors appearing herein.