Value in 60 Seconds: How to model Financial vs non-Financial companies - 8 Sept 2023

I do want to cover this report we did on the difference between our stock models for financial versus non-financial companies. This is a clients-only educational post, but it's really cool and a detailed explanation. When I started in this business, people said you couldn't apply our methodology to financial companies. And I thought to myself, all businesses have economics. That's universal. To think about the underlying economics of businesses in a universal way, you have to measure just 2 things. How much cash flow does the business generate relative to how much capital's gone into it over its life? As long as you can get to that, this methodology applies to everything. So it works for financial companies, and I explain why, and I show the nuanced differences on how you treat line items. On how to get there.