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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", sykesix asked the members: "What do you do if you arrive early at movie besides go to the snack bar?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: tecmo ⎊☼  😊 😞
Number: of 22989 
Subject: Re: Bending Spoons business model
Date: 10/24/26 7:17 PM
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No. of Recommendations: 8
Most SaaS businesses can generate 25% operating margin - at least for awhile - understanding how long you can stretch that out is the critical indicator. To get there you need to cut R&D down to around 8% of revenue (this is typically level the sustain the customer base) - that metric might get even lower if AI tools are use to augment the engineers.

tecmo
...

PS: The rule of 40 is helpful here; while most SaaS can generate 25% operating margin; most choose not to; investing in R&D at much higher levels to generate growth. The rule says take your growth rate and add your operating margin - the closer you are to 40 the better; many mature companies run at a 15% margin and a 15%-20% growth rate.

tecmo
...
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This community has written 22,499 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 58 recs · 2023
Summary of 2Q 2026 · 55 recs · 2026
3Q Summary · 53 recs · 2024
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