Operating Leverage

topic on 2 shows · 2 statements across 2 episodes

Capital Allocators 20VC

2 statements about Operating Leverage, every show

Greenblatt's biggest mistake was misunderstanding operating leverage in a trade show company
“Operating leverage, I invested in a company that was a trade show company, where you could get unlimited space in Las Vegas, so it only cost them two dollars a square foot for the space, and they could re-rent it out for the trade show at 62 dollars. So the mo…”
Joel Greenblatt Nov 23, 2020 ▶ 1:17:07 Joel Greenblatt – Common Sense for Value at Gotham Capital (Capital Allocators, EP.165)
20VC Insight
Oetting: Business Growth Creates Value Only With Operating Leverage
“Growth creates value when there's an argument or there is evidence of operating leverage, because then it creates more profitability.”
Drew Oetting Sep 27, 2017 ▶ 16:22 20VC: Why VCs Have Forgotten Their Job To Invest In Entrepreneurs not Technologists, How To Know When Growth Creates Value and When It Destroys It & How To Bootstrap Learning Most People Acquire Over Decades with 8VC Founding Partner, Drew Oetting

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