Topics & People
The difference between revenue and cost of goods sold, noted by Cohen as a frustration point for sellers.
A business model characterized by high gross margins (typically 80-90%) because the cost of delivering an additional unit of the product is near zero. This is contrasted with tech-enabled businesses that have significant physical costs of goods sold.
A business model for traditional industries that use technology to improve operations, but whose core economics are not those of a pure software company. The podcast cautions investors against confusing these with high-margin software businesses.
A type of loan where the interest rate varies over time based on a benchmark rate. Adam Neumann's use of this for Flow's properties is highlighted as a critical financial mistake as interest rates have spiked, making debt payments unsustainable.
The practice of purchasing property as an investment. The podcast emphasizes that in real estate, the purchase price and capital structure are often more critical to success than operational excellence, a lesson Adam Neumann has struggled with.
The co-founder of WeWork. His 'brilliance' is sarcastically noted for convincing investors to pour billions into tenant improvements under the guise of it being a software business.
A model of aircraft from Boeing that has been plagued with significant safety issues, including fatal crashes due to software flaws (MCAS) and a recent incident where a door plug blew off mid-flight.