Comments by "Maxwell Benz" (@Tential1) on "Louis Rossmann"
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@rangerdoc1029 I transact in millions. They do die diligence. It's just the judge has ZERO understanding of what we do, because it's basically black magic. I couldn't explain it if I tried. So an APPRAISER value of something? Lol. I call it the real world and the finance world. Your world, the real world, 20M is a large number, and an appraiser might use that to show something is valuable. Where as in our world, the finance world, 20M is, what shows up on my sheets as 20. We count in millions. So 20 is no problem. Hell, even myself, a lowly staff person can raise 100M. It's just, when you get to our magnitude of numbers, it's impossible to comprehend unless you live it. This is a world where we would spend 20M extra to buy the property, without second thought. 20M isn't even a lot of money when you talk about that business.
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Louis, it's extremely common for public businesses to lose money (and private) when they are in their growth phase. Just go look at financials from most companies. Remember Tesla, how you all complained that Tesla was an unprofitable business and it was going to go bankrupt? And now, it has the highest profit margins of any auto, with last quarter hitting 11.76%. There are COMPLETELY valid reasons to stay unprofitable in the early years of your business, it just doesn't apply to businesses like yours that are very small. As a person who has actually experienced this, but had your line of thinking, you can't think like a normal person when you are playing at this level. I thought like you, focused on short-term profitability at the expense of scaling the business, and got stomped out by competition. When you're playing with private equity backers, or can secure hundreds of millions/billions in loans, the game is played differently.
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@edrosales1520 (sorry, wall of text, you got me talking about my favorite part of finance, secrecy) "alright, put your money where your mouth is and tell me how you make money so I can do it too."
dude, whether it's trading, m&a, or whatever, most things in finance work because it's not a widely known tactic. If I promised you I could tell you how it would work, I would create a "course " sell it to you, and then scam you, like EVERY money guru you see on YouTube. How do you know a person has a real way to make money? They won't tell you. Dude, you could straight up torture me. I'm not telling you any way I've learned to make great profits. I don't even tell my family or friends, to be safe about leaks. The second it's widely known it loses effectiveness. We call it, alpha deterioration. Go read about Renaissance Technologies(there's a good book on it too). If you work there and say any part of their strategy publicly, they will destroy your life. I'm not breaking NDAs. M&A tactics are things you can only learn working in the industry, and giving that away is neutering a multimillion dollar opportunity.
Just use this info to help you point out scams. If someone promises they can make you rich, they're lying. Because none of us in the industry would give away a strategy, even for money. We use the strategies to generate money. If you want to learn this stuff you're going to either have to join a company that has access to this info or I guess like I said, find someone capture them and torture them for the info. Also, just to clarify, zillow is a public business, the strategy you'd use in this case isn't an M&A strategy. Since we aren't proposing a merger or acquisition. It's more of a capital efficiency strategy. And like I said, I may have just misinterpreted what he said, it's mostly right. You really should be able to figure it out from what he said. But if you can't implement it, I'm not going to just give it away. Go make enough money for me to manage, collect my fee and sure, I'll help you improve how fast you can generate wealth too. Main issue with this being that because you don't understand how it works, you have no ability to find the people that can actually do this correctly.
Also, while what he said is mostly correct, it assumes the company is successful. If it is, it's gravy. If not, you accelerate your losses. Many people and companies have failed/bankrupted specifically because of this.
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