Intangible Assets: The Invisible Value Driver
Accounting is the language of business and you need to understand it to appreciate economic value and to assess competitive positioning. Investors face a slew of psychological challenges. Perhaps the most difficult is updating beliefs when new information arrives. Position sizing and portfolio construction still do not get the attention they warran... See more
Dan Callahan • Reflections on the Ten Attributes of Great Investors
1/ Thread: The role of intangibles in valuation
I feel like a broken record, but @mjmauboussin and Dan Callahan recently published another intriguing piece titled "One Job".
What is "One Job"?
To take advantage of gaps between expectations and fundamentals.
But first a quiz.
Economist Per Bylund once noted: “The concept of economic value is easy: whatever someone wants has value, regardless of the reason (if any).” Not utility, not profits—just whether people want it or not, for any reason. So much of what happens in the economy is rooted in emotions, which can, at times, be nearly impossible to make sense of. To me it
... See moreMorgan Housel • Same as Ever: A Guide to What Never Changes
The meta of investing is always changing. But there are some things that are timeless, like if your return on an invested capital goes up, you are going to become more valuable. If you compound your free cash flow per share, you are going to become more valuable. There are these immutable things and a lot of those things have been written about by ... See more
Gavin Baker • Security Error | Columbia Business School
Value creation transcends sales and exchange. Investments are more than simple transactions; they’re a bet on the future of value.
Michael Schrage • Who Do You Want Your Customers to Become?
