Call it a “roole” Yahoo was once worth $125bn, declined a $45bn buyout offer from Microsoft in 2008, and sold to Verizon for $4bn 10 years later Few shareholders shouted “Yahoo” The wheels and chassis have seemingly fallen off Cazoo In Sep ‘21 it was worth $7bn but has since fallen 99.8% to $13m today, … Read on
The idea of being a long-term buy-and-hold investor is attractive – it doesn’t require making many decisions, and decisions are often stressful, especially those about your financial future. But the unfortunate truth is that markets change with time. If they didn’t, we’d all still own railroads and steel companies. We must therefore make difficult decisions … Read on
“…if management steal less money than they stole last year” He was talking about Russian oil giant, Gazprom, at a conference I attended back in 2004/5 But I wonder how this differs from the excessive executive compensation I see in the US Yes, I know it’s not “stealing” because Exec Comp plans are derived by … Read on
A £200 portfolio with a fair value of £300 and a potential return of 50% The next day, company A announces fabulous results and rallies 40% to a price of £140 Meanwhile, Company B’s competitor announces disappointing results and drags B down 20% to £80 Resulting in a portfolio worth £220 (140 + 80) with … Read on
Or “The 7 habits of AVERAGELY successful people” By Stephen Covey You haven’t? Of course not, HIGHLY successful people want GREAT, not AVERAGE Who doesn’t want to be a WONDERFUL partner, a SUPERB friend, a FANTASTIC parent, or an AMAZING co-worker at a GREAT company? All of us, right? So why are we happy to … Read on
But then isn’t Like Argentina beating Saudi Arabia at the football World Cup But then losing 2-1 Or the All Blacks beating Ireland in NZ because “duh…they always beat Ireland at home”, But then losing 22-32 Well, I think we’re heading for a major financial surprise hashtag#activemanagement outperforming hashtag#passiveinvesting Really, why? Well, the 5 largest … Read on
A company’s future ROE / ROA / ROIC is unlikely to be the same as history,especially if management allocates capital badly Meaning I’m no fan of all that Sustainable Growth Rate (SGR) stuff But before we tackle an example, a quick recap The SGR = how much the company retains (1- dividend payout ratio) x … Read on
COMMENT: There’s real pain for investors in highly-rated companies that don’t deliver. ‘We’re still growing, right? So, it’s not that we’re shrinking there, but it’s growing at a lower pace than anticipated.’ So said Pieter van der Does, CEO of leading fintech payments company Adyen talking about its US operations on an earnings call last month. Three trading … Read on
Disney hit the lowest price in a year – down 59% since March ’21 How? Isn’t it a “great business” with “excellent management”? I thought “great businesses” meant “great share prices” Nope But their parks & ships must be pumping with post-COVID vacations,Disney+ has over 100m subs and they own the best sports content in … Read on
Is that Nvidia’s net income? No, that was $6.1bn Is that their revenue? No, that was $13.5bn It’s not the market cap because I know that’s a mighty $1.2 trillion So, what’s $56bn? The value of Nvidia’s shares that traded yesterday – equal to the market cap of Heineken Wow, people really wanted those shares! … Read on