Labels? What is the first thing that comes to your mind?
Let me guess. Brands? Handbags etc. Labels refer to anything that can be classify under a name. Brand is a label premises on a PROMISE of quality and a particular experience.
Concepts is a label too. Label makes communication easy. Say “fallen angel” in investment context and people understand. It’s makes complex and detailed information concise.
It could do the reverse too. I make people react to the first and basic information without regarding the discourse of it. Let’s try another example. Free Cash Flow is good.
There are traditional ways and conservative ways of calculating FCF, and there is limitation and justifying of -ve of FCF at times. It’s easy to gross over the the exceptions and the underlying assumptions made.
Then there are concepts too deep and complex to be label. Let’s try this. …