Bewareofgoldrushes

The relationship between cash flow and TIP for 2021 shows how investors responded to the potentially transformative acquisition. Cash flow surged, even relative to the high-demand first year of the pandemic. TIP? Not so much. Investors didn’t buy the Mirror story.

The Mirror case further reflects a bigger theme. With gyms closed, the at-home fitness industry boomed. One observer likened it to a gold rush. Gold rushes bring out some of the worst biases in decision makers. There is a sense of urgency because everybody knows the rush won’t last forever. There is the belief that establishing a strong position early will be one that can be maintained.