Watching a long snippet of this chat between Stephen Bartlett and JL Collins, last week, it was superb timing to discuss the analogy of Shares being like Beer and the Froth….
Example #1 – Klarna (Down 1/3 on its hype fuelled IPO – https://lnkd.in/e-fuPcqU)
Firstly from a personal standpoint I can’t seem to understand how something that’s a glorified Wonga (who everyone hated, dressed up in new clothes) is so hyped.
However personal views on that aside. Klarna has been hugely successful in getting it’s sticky mitts on virtually every consumer site possible. Yet, they’ve only turned a profit once (2024), which in relation to it’s massive (but “strategic” losses) is miniscule.
I understand the logic and fixation on revenue growth and growing the asset but when underpinning huge amounts of debt which given the global economic instability, erratic political leadership etc, it seems like Klarna’s IPO glamour has worn off and the “Beer” volume is being found.
Will it drop further, time will tell. What I see as most exciting this year is working with those focussed on being well run and profitable, and scaling sensibly. Occasionally deemed less sexy with less beanbags, free coffees, pilates classes and neon signs but end of the day they’re just good solid businesses where they’re 92% beer and 8% froth.
Video Link: https://lnkd.in/ejSDcez9
If you want an accurate view of who we represent and how they operate, not just the froth filled job descriptions you see posted everywhere, then we’re here to help.
We want our candidates joining companies full to the brim with beer and future reward.
