Year 2020 In Perspective
Despite the backdrop of COVID-19, the year 2020 has been good to me. Writing online made me a better learner and allowed me to meet people smarter than me from…
Terry Smith on Accelerated Share Repurchases
There is only one combination of facts that makes it advisable for a company to repurchase its shares: First, the company has available funds — cash plus sensible borrowing capacity…
Why Did Bill Ackman Buy into Hilton?
Hilton first got my attention earlier this year when Ackman doubled down. This was after his incredible timing (both with buying and selling) with his hedge, profiting over $2b (on…
How Return on Invested Capital and Growth Creates Value
Value is driven by 3 things: growth, return on invested capital (ROIC), and the cost of capital (COC).
Domino’s Pizza: How to Better Understand Restaurant Franchises
For anyone looking to start learning how to invest, I would always recommend starting with products or services you use. Being a foodie myself, F&B naturally falls within my circle…
How Growth, Return on Capital, and Discount Rate Affect Valuation
Nobody will know where interest rates are headed, but it is important to appreciate the relationship between the discount rate and long-duration assets. In other words, we should be mindful…
Why Pay More for Quality Businesses?
Over the long term, it’s hard for a stock to earn a much better return that the business which underlies it earns. Likewise for companies that are able to sustainably…
Why You Should Keep an Investment Journal
When it investing, it helps immensely to have these 3 tools in your arsenal — an investing journal, a watch list, and investing checklist.As I was reviewing my investing journal…
Why I Initiated a Position in Fastly
Initiated a stake in Fastly this week to make myself follow through on deep diving into this company. They reported a strong set of Q2 results, with revenue rising 61.7%…
What Fund Managers are Saying about the Current Environment
The year 2020 has been interesting, to say the least. With the market crashing down at an astonishing speed, and then shooting back up within a short period of time….
How to Analyze SaaS Companies
Despite most of the SaaS companies commanding lofty valuations, not all of them will meet the high expectations set out by investors. We have to first ask ourselves if this…
How to Screen for High-Quality Compounders?
Using the gross profitability method, a dollar invested in the market between 1973 to 2011 grew to over $80. While the same dollar invested in businesses that have high gross…