Online-ing physical business doesn’t necessarily translate into financial profit. Teladoc, Uber, Doordash, and even the European counterpart Justeat Takeaway1 still recording losses. Investors may believe once economies of scale are reached – the long-awaited profit will be materialized. Here we perform an economy of scale analysis to get deeper into that issue.
The year 2020 is another story of fail, bleakness, and uncertainty for General Electric. Yet, our task as an investor is to seek the opportunity offered by a mismatch between consensus and reality – between expectation and fact. To exploit that, we think we need to know the competitive advantage of GE Aviation – the largest segment owned by the conglomerates.