A New Mental Model for Investing
The article introduces the Scale Economics Shared mental model for investing, which emphasizes a long-term growth as opposed to near-term profits. It compares this model, famously used by Amazon’s Jeff Bezos, to the investing philosophy of Warren Buffett. Analysts can apply this model to forecast the long-term payoff stemming from short-term expenditures for certain companies that have the potential to become leaders in their respective industries.
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