Why do you prefer companies with clear paths to positive cash flow over capital-intensive startups?
Replied byBill Ackman
Founder & CEO at Pershing Square Capital Management
Niche: Finance
Revenue: Not Publicly Disclosed/month
Location: New York City, New York, United States
Started: 2004
I do not like businesses where you must continually inject capital over time without a clear point where the lines cross and they become cash flow positive. OpenAI, for example, is consuming tens of billions of dollars, and it remains to be seen how long public markets will fund that.
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