THE GOLDEN RULES OF INVESTING

TL;DR

Square has multiple revenue streams, including transactional fees, Bitcoin investments, and acquisitions. The company's foray into banking opens up new opportunities, and the acquisition of TIDAL brings valuable customer data.

Transcript

i posted this last week but squares the new jp morgan and congrats to jay on the deal with jack so squares one of my favorites has been for a while but here's how square makes money now that they're going into the banking space and they they can do lending at 10x the capital reserves they have in their possession that is going to be a huge benefit ... Read More

Key Insights

• 🥳 Square's expansion into banking allows them to lend at a higher ratio than their capital reserves, providing a significant advantage in the industry.
• 🤱 Transactional fees from selling products and services are a major source of revenue for Square.
• ❓ Square's investments in Bitcoin contribute to their overall profitability.
• 👤 The acquisition of TIDAL music service brings valuable customer data and expands Square's potential user base.
• 👉 Having a well-defined system for entry and choosing the right price points is crucial for successful investing.
• 🏍️ Understanding market cycles and historical data can help investors make more informed decisions.
• *️⃣ Maintaining risk control and having a predetermined exit strategy is key in managing investments.

Questions & Answers

Q: How does Square benefit from their expansion into the banking space?

With the ability to lend at a 10x ratio of their capital reserves, Square gains a significant advantage in the banking industry and opens up new revenue streams.

Q: What is one of Square's major sources of revenue?

Transactional fees from selling products and services contribute to Square's revenue, making it one of their key sources of income.

Q: How does Square generate income from Bitcoin?

Square invested $170 million in Bitcoin in February, and they make a significant portion of their revenue from Bitcoin investments.

Q: What are the advantages of Square's acquisition of TIDAL?

The acquisition of TIDAL provides Square with access to valuable customer acquisition and data, enhancing their platform's user base and potential for growth.

Summary & Key Takeaways

• Square's expansion into banking allows them to lend at a ratio of 10 times their capital reserves, providing a significant advantage in the industry.

• Transactional fees from selling products and services contribute to Square's revenue, along with their investments in Bitcoin.

• The acquisition of TIDAL music service allows Square to access more potential customers and expands their platform's user base.