Daniel Bakalarz
- On stocks:Over the long term, it's hard for a stock to earn a much better return than the business which underlies it earns. If the business earns 6% on capital over 40 years and you hold it for that 40 years, you're not going to make much different than a 6% return— even if you originally buy it at a huge discount. Conversely, if a bus... See more
from A Lesson On Elementary, Worldly Wisdom As It Relates To Investment Management & Business – Charles Munger, USC Business School, 1994 by Charlie Munger
Only a value proposition that requires a tailored value chain to deliver it can serve as the basis for a robust strategy. This is the first line of defense against rivals.
from Understanding Michael Porter: The Essential Guide to Competition and Strategy by Joan Magretta
- Cash is a call option on the opportunity. Having ample liquid cash putsvaluable optionality in the hands of investors, to make bargain purchaseswhen opportunities arise, and it also makes them antifragile
from Five biggest takeaways from Warren Buffett and Charlie Munger’s Berkshire Hathaway annual meet by Guatam Baid
- The synthesis of these ideas may merely prove to be confirmation bias, but they are deeply resonant with me. And that’s the crux of the filtering process. That resonance hints at an internal alignment around values. You can intuitively detect it when you read it, when you hear it, and when you speak it. Shepherd wonders if what we hear as “eloquenc... See more
from The Attention Span. “Racehorses and Psychopaths.” by thekcpgroup.com
- The difference between the unadjusted and the adjusted MEROI is a function of what percentage of SG&A isreclassified and the assigned amortization period. (See the appendix for a more detailed discussion.) If noSG&A is considered to be an investment, no adjustments are necessary. The higher the percentage of SG&A that is capitaliz... See more
from Market-Expected Return on Investment Bridging Accounting and Valuation by Morgan Stanley
- one concept that is close to immutable for an investor is that the present value of future free cash flow determines the value of a financial asset. This is true for stocks, bonds, and real estate. Valuation is challenging for equity investors because each driver of value—cash flows, timing, and risk—are based on expectations wher... See more
from Reflections on the Ten Attributes of Great Investors by Dan Callahan
- You can pretty much, I think, get an organization and a team through almost any challenge as long as you can maintain good cohesion.
from The Tim Ferriss Show Transcripts: Mark Zuckerberg on Long-Term Strategy, Business and Parenting Principles, Personal Energy Management, Building the Metaverse, Seeking Awe, the Role of Religion, Solving Deep Technical Challenges (e.g., AR), and More (#582) by Mark Zuckerberg
Competitive advantage arises from the activities in a company’s value chain Porter uses the phrase operational effectiveness (OE) to refer to a company’s ability to perform similar activities better than rivals.
from Understanding Michael Porter: The Essential Guide to Competition and Strategy by Joan Magretta
- Is the Graham and Dodd “look for values with a significant margin of safety relative to prices”approach to security analysis out of date? Many of the professors who write textbooks todaysay yes.Well, maybe. But I want to present to you a group of investors who have, year in and yearout, beaten the Standard & Poor’s 500 stock index.
from The Superinvestors of Graham-and-Doddsville by Warren Buffett