Latest by Michael Mauboussion on EV/EBITDA - often used and abused
Real world Vs book world
Rules of investing Vs exceptions
By Morgan Housel
By dominating retail and digital business services, both of which touch almost every other industry, Bezos is now positioned to move adjacently into just about any business where he finds added value. He’s playing in the multibillions in at least four markets—healthcare, entertainment, consumer electronics and advertising—that constitute many of the companies not already terrified of Amazon.
This is a superb article touching most of the facets of Amazon and Bezos. A must-read.
There is a feeling in Silicon Valley that you can say anything you want to investors as long as you think you’re changing the world.
A great article on a legendary short seller - Jim Chanos.
The next crisis might not come from a financial shock at all. The more likely culprit: a cyber-attack that causes disruptions to financial services capabilities, especially payments systems, around the world.
The onset of stress entices the brain into growing new cells responsible for improved memory. However, this effect is only seen when stress is intermittent. As soon as the stress continues beyond a few moments into a prolonged state, it suppresses the brain’s ability to develop new cells.
I love lists. This one has some wonderful quotes and plain simple advice.
“Why US dollar has to be the only world’s reserve currency?”
China and Russia are pushing hard to make an alternate payment system.
Why one shouldn’t blindly clone…
The US-China trade war may not be what it looks. Interesting views by a respected economist Dr. Ed Yardeni.
Excellent interview of Bharat Shah and good discussion on how to value financial business
would suggest forum members to try out this website which is a paid subscription curating new longform articles everyday from India.
you can check out some free articles too
i feel good journalism has become a rarity these days & i quite liked this portal so sharing
Here it is :The Ken
Extraordinary comparison between the Amazon of today and Sears of a century ago to show how uncannily similar they were.
From the start, Sears’s genius was to market itself to consumers as an everything store, with an unrivaled range of products, often sold for minuscule profits. The company’s feel for consumer demand was so uncanny, and its operations so efficient, that it became, for many of its diehard customers, not just the best retail option, but the only one worth considering.
In the decade between 1895 and 1905, Sears’s revenue grew by a factor of 50, from about $750,000 to about $38 million, according to Alfred D. Chandler Jr.’s 1977 book The Visible Hand: The Managerial Revolution in American Business. (By comparison, in the last decade, Amazon’s revenue has grown by a factor of 10.)
Sears was not content to be a one-stop-shop for durable goods. Like Amazon today, the company used its position to enter adjacent businesses. To supplement its huge auto-parts business, Sears started selling car insurance under the Allstate brand.
Read the full article here: https://www.theatlantic.com/business/archive/2017/09/sears-predicts-amazon/540888/
A good profile of how Oberoi Realty is bucking the trend in the crowded real estate market.
To be honest, I had never heard of Robert Vinall before this week. He is the owner and fund manager at RV Capital based out of Frankfurt Germany. His fund completed 10 years and he has written a wonderful letter. It encapsulates a lot of learnings that most of us go through. Definitely worth a read.
From a financial perspective, my sell decisions demonstrate that whilst it is correct to sell when a flaw in the investment case becomes apparent, it is often not when the valuation appears rich. In all but the broadest strokes, the future is unknown and unknowable. Where I know the company and its people well and, crucially, trust them, the surprises have normally been positive. What appeared at the time to be a high valuation, was not.
If you are starting today, my advice is to be fully invested, but only to hold the companies you would own if you knew the economy was on the brink of collapse. Incidentally, this is the correct way to invest all the time.
EU is planning to impose tax on big Tech (google, facebook etc) based on digital presence rather than physical presence. If implemented, it will open up a new frontier of taxation and my guess is most if not all countries will then follow suit.
Read the full article here: https://www.bbc.com/news/business-45813754
Paul Allen, the cofounder of Microsoft, passed away earlier this week. Here is an obituary written by Bill Gates.
Paul foresaw that computers would change the world. Even in high school, before any of us knew what a personal computer was, he was predicting that computer chips would get super-powerful and would eventually give rise to a whole new industry. That insight of his was the cornerstone of everything we did together.
In fact, Microsoft would never have happened without Paul. In December 1974, he and I were both living in the Boston area—he was working, and I was going to college. One day he came and got me, insisting that I rush over to a nearby newsstand with him. When we arrived, he showed me the cover of the January issue of Popular Electronics. It featured a new computer called the Altair 8800, which ran on a powerful new chip. Paul looked at me and said: “This is happening without us!” That moment marked the end of my college career and the beginning of our new company, Microsoft. It happened because of Paul.
old Study worth reading by credit suisse
Boom, Bust, Rinse & Repeat: Predicting The Global Economy by Raoul Pal
Great video on correlation of business cycles with equity, debt, credit, commodities etc.
I see that the link hasn’t before in this thread. Pardon me if it has been posted in some other format.
In 1984, Warren Buffet wrote an article titled ‘The Superinvestors of Graham-and-Doddsville’ on Hermes, a magazine published by the Colombia Business School. In it, he promoted ‘Value Investing’. To provide proof, he talked several of his peers, including the likes of Walter J. Schloss and Charlie Munger.
The article is still available in Columbia University’s website:
I highly recommend that you make the 13-page article a light, weekend read.
Mauboussin interview : excellent discussion on Base rate , expectation, EV/Evebitda and all link provided are also worth it
All his research work is conceptually easy to understand for me and I like to read repeatedly
A very interesting Presentation on valuation by Raamdeo Agarwal
Wonderful article on the search for investment edge. Has some wonderful anecdotes.
In 1834, however, the signal from a similar optical telegraph system in France lost its edge when the data became corrupted.
In the world’s first cyber-attack, two bankers bribed a telegraph operator to transmit false information about the bond market to unsuspecting investors in Bordeaux, which would benefit the banker’s positions.
We are not just using plastic, we are eating them too!
If the pieces of plastic were in these people’s digestive tracts, nobody is sure yet how they got there. Some might be coming up the food chain — ingested when we eat creatures that ate plastics, or when we eat creatures that ate creatures that ate plastic, etc. Some may be coming from water bottles and food containers. Other studies have shown that both tap water and bottled water are contaminated with microplastics. A story in National Geographic points out that carpeting and other household items can shed plastic fibers, and that fibers from synthetic clothing are floating around our homes.
Also unknown are the health ramifications, if there are any. In studies of sea birds, ingesting plastic had exposed them to chemicals called phthalates, which are known hormone disrupters.
A very interesting new research on how the potato, brought back by the Spanish from South America in the 16th century to Europe, ushered in an era of high farm productivity, which in turn reduced armed conflict significantly in the following 200 years.
The difference on being humble and being humble
A wonderful compilation of corporate misdemeanors in India by Rudra Chowdhury.
And now, bottled air!!