Finance

The market’s bottomless appetite for tech debt looks like it might finally be running up against natural constraints — not necessarily because investors have lost faith, but because their own balance sheets simply can’t stretch forever.

The 3P test: Once you compute the operating metrics you need to breakeven on an investment in a highly priced company, passing those metrics through the 3P test (Is it possible? Is it plausible? Is it probable?) allows you to examine each company on its merits and potential, rather than use a broad brush or a rule of thumb (based on PE ratios or... See more