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% y-o-y. It was also the first time their EPS became…
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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 company has a moat, followed by understanding its unit economics…
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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 profitability (i.e. above 33%) grew to $572 in the same…
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Amazon and the Problem with Reported Earnings

Where the key value driver of a company is in intangible investments, investors need to look beyond reported earnings. Especially for innovative companies in their early stage as they invest heavily in growth. Compressing their earnings and balance sheet assets.
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Analyzing the Gross Profit Margin

Reading the financial statements may be daunting for beiginners. This post will bring you through revenue, cost of goods and gross profit with case studies such as Costco, L Brands, Ulta and Ferrari!
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