Notes From The Field  By Simon Black

August 28, 2019   Bahia Beach, Puerto Rico

How To Become A Billionaire In Five Easy Steps

Every morning here in Puerto Rico, I wake up around 6am as the sun rises over the ocean in front of my house. And I pretty much head straight to the gym.

Once there, one of my favorite medieval torture devices is a fairly new exercise bike called a Peloton.

In case you haven’t used one before, a Peloton is like any other stationary exercise bike. You pedal a lot, and it sucks.

The key difference is that Peloton bikes are connected to the Internet, and the company live streams classes directly to the integrated monitor on your bike.

So instead of going to a spinning class, you can simulate being in a class and having someone yell at you from thousands of miles away.

You might be thinking-- can’t you get the same experience on a regular stationary bike while watching some YouTube videos?

Why yes, that would pretty much be the same experience.

But Peloton prides itself on building wellness, connectedness, and happiness-- all the ‘ness’s’ that Millennials love. So it’s pretty popular.

And following in the footsteps of WeWork, Peloton formally filed paperwork yesterday to go public on the NASDAQ under ticker symbol PTON.

The company anticipates a share price that will value the company at roughly $8 billion.

Yet according to its filing, the company lost $195 million in the fiscal year ending June 30, 2019. That’s four times worse than the company’s $48 million loss in Fiscal Year 2018.

It’s normal for early-stage businesses to lose money at first. Rome wasn’t built in a day. But usually management can provide guidance about the light at the end of the tunnel.

Not Peloton.

Just like WeWork, Peloton expects to continue losing money for the foreseeable future, and acknowledges that they may never achieve profitability.

Peloton also provides the most absurd statements as its company mission. Just like how WeWork aims to ‘elevate the world’s consciousness’, Peloton claims that it “sells happiness”.

It’s SEC filing also contains a bunch of fluffy graphics showing off their diversity, community, and interconnectedness.

To continue reading, please go to the original article at

https://www.sovereignman.com/investing/how-to-become-a-billionaire-in-five-easy-steps-25518/