Earnings Per Share

“Is your model, you know, being five percent more accurate, really going to ever make a good investment decision or not? No, never, not once. Like no one's saying, oh yeah, my estimate is always one cent more tighter than everyone else. That's why I'm good at s…”

“And I look at Apple, and this is what concerns me. Revenues are growing. Minimal. And yet, it generates meaningful cash because it has a brand. People are still willing to pay eight, 2000 dollars for a new phone. There's a lot of competitors, and I'm not sure …”

“The starting point is, can we generate Absolute double digit returns over a long period of time. Think of us as absolute return investors living in a relative return world. We're modeling companies out five, six, seven years, looking at normalized free cash fl…”

“When big companies with a lot of cash make corporate investments, it's weird because if you're generating, at least in the US, if you're generating massive amounts of cash, it's orphaned on your balance sheet. You can't just go hire a thousand engineers. It hu…”

“Our job is to make money at Salesforce Ventures, but it's more important we don't lose money. Because if we lose money, we have, we may have to take an EPS hit or an impairment charge. But as long as our investment doesn't go down, it's pretty much okay.”

“If you incentivize, if you pay the CEO based on earnings per share and particularly quarterly earnings per share, which I think we did at HP or at least annually. You know, if you optimize for that, you can do things that would undermine long-term productivity”

“Acquirers don't want to buy ongoing losses, so you have to have a manageable burn, and of course, that the various ways of looking at that, but it's typically as a percentage of the acquirers EPS how much they can absorb, how many kind of losses they can absor…”

“The last I checked, there's a 95 plus percent correlation between earnings per share and share price of companies throughout the history of the stock exchange.”