Daniel Bakalarz

“You have to either panic early or double down late,”

You may have noticed  students who just try to remember and pound back what is remembered. Well, they  fail in school and in life. You've got to hang experience on a latticework of models in  your head.  What are the models? Well, the first rule is that you've got to have multiple models—  because if you just have one or tw... See more

A Taxonomy of Moats "How much value accrues to the innovator depends partly on competitors. There are many different ways of deterring competition, moats, but they have at their root only a few different principles." https://t.co/2lRGuPSDJb

There are three steps in estimating MEROI in practice. First, you create a discounted cash flow model thatreflects the expectations embedded in the company’s stock price.8 Second, you calculate the present value of  investments discounted at the cost of capital. And finally, you solve for the breakeven rate that equates the  present value... See more

“How you get an organization of a hundred thousand people through something is about managing your own psychology and about managing your team’s psychology.”

The common intellectual theme of the investors from Graham-and-Doddsville is this: theysearch for discrepancies between the value of a business and the price of small pieces ofthat business in the market. The investors simply focus on two variables: price and value.

Very important lesson from @michaelbatnick: "you need to preserve your mental capital." https://t.co/1LLCdxq6NZ

Markets:The model I like—to sort of simplify the notion of what goes on in a market for  common stocks—is the pari-mutuel system at the racetrack. If you stop to think about  it, a pari-mutuel system is a market. Everybody goes there and bets and the odds  change based on what's bet. That's what happens in the stock market. Any damn ... See more

Making money in markets requires having a point of view that is different than what the current pricesuggests. Michael Steinhardt called this a “variant perception.”13 Most investors fail to distinguish betweenfundamentals and expectations. When fundamentals are good they want to buy and when they are poorthey want to sell. But great investors alwa... See more