Daniel Bakalarz

My job is not to predict the future. It is just to notice the present first.

The balance, is to understand that there are things that are bigger than you, but what you do  still matters.

Sorting expenses and investments was easy whenmost of the expenses were on the income statement and most of the assets were on the balance sheet. Butcategorization is a challenge today because income statements conflate expenses and investments.  One consequence of the shift to intangible investments is that more companies are reporting negati... See more

Most investment managers are in a game where the clients expect them to know a lot  about a lot of things. We didn't have any clients who could fire us at Berkshire  Hathaway. So we didn't have to be governed by any such construct. And we came to  this notion of finding a mispriced bet and loading up when we were very confident that&... See more

The value of information is determined by what’s discarded in the process of creating it.

everybody agrees that stores have value in an online world. Even if you make no money in a store, it lowers your online cost of acquisition. This is the reason all these DTC brands are opening stores. Stores have value.

Investors generate excess returns when they buy the shares of companies prior to a revision in expectationsabout future cash flows. A key determinant of cash flows is a company’s ability to allocate capital toinvestments that create value. The current principles of accounting do a poor job of separating investmentsand expenses, creating a veil that... See more