When responding to financial updates from this company, the...

When responding to financial updates from this company, the mistake the market often seems to make is to focus only on this relatively volatile picture:





...whereas what I think is the more relevant thing on which to focus is the consistency of this one:




Because, as the business continues to grow, the scale benefits will make the former graph behave increasing like the latter in terms of consistency and predictability.

But until that happens, the variability in earnings means that every update is likely to present an investment opportunity (be it a buying or selling one).

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