Retail Carnage (Part 1) – Perception vs Reality – Chad Brand, May 19, 2017| As a value investor, it should not be surprising that I have been spending a lot of time on the retail and restaurant sector over the last year or so. The space has been pummeled by Wall Street in recent quarters, as the thesis gains steam that we have essentially reached “game over” for traditional businesses.
Zalando Busts the Myth of Cheap Online Retail – Business of Fashion, May 9, 2017| Zalando is the latest online retailer to spell out just how much it is spending in an attempt to stay one step ahead. The danger is that profit growth doesn’t keep pace with sales expansion.
There’s no good way to kill a bad idea – Quartz, May 1, 2017| Millions of people refuse to recognize man-made climate change. Americans spend billions on homeopathy. Around 12 million people believe that lizards are secretly ruling the world. The world is filled with bad, baseless, factually inaccurate ideas that refuse to die.
Inversion: The Crucial Thinking Skill Nobody Ever Taught You – James Clear| This way of thinking, in which you consider the opposite of what you want, is known as inversion. When I first learned of it, I didn’t realize how powerful it could be. As I have studied it more, I have begun to realize that inversion is a rare and crucial skill that nearly all great thinkers use to their advantage.
Q&A With Steve Schwarzman: “There Are No Brave Old People in Finance” – Bloomberg Markets, June 6, 2017| Steve Schwarzman seems strangely content—up to a point. A decade ago, the Blackstone co-founder, chairman, and chief executive officer was astride Wall Street as the private equity poster boy, armed with record-setting deals, a momentarily blockbuster initial public offering, and a birthday party that people are still talking about.
Testing Mattresses with Warren Buffett – Gates Notes, June 6, 2017| When the weather turns warm, some people head to the beach. Some like a picnic in the park. Personally, there is one place I visit every spring no matter what: Omaha, Nebraska, the site of Berkshire Hathaway’s annual shareholders weekend with the company’s CEO and chairman (and my friend) Warren Buffett.
Balancing Professional Values and Business Values – John C. Bogle, 2017| As we move deeper into the 21st century, nearly every aspect of our society is confronted with extraordinary change. The very survival of some traditional fields of commerce is threatened, including print media, retailing, and intracity travel.
The Power Of The Model And The Rich Valuation – Part I: Why I believe in Amazon’s model – Grahamites, June 5, 2017| In retail, almost 100% of the time the answer to the first question is a quick Amazon (NASDAQ:AMZN). But in a recent meeting I was surprised when a member of the management team I visited said that if he were to short a company for the next 10 years in retail, it would be Amazon. Why? He said there was too much Bezos hype built in the stock.
Focus on Fundamentals – LPL Research, May 22, 2017| What are we telling our investors? Focus on fundamentals.
Retail Survivor – Eric Cinnamond, May 29, 2017| Although I do not own DSW at this time, rising retailer pessimism and DSW’s declining stock has increased my interest.
FANGs or Patience = 5 Stars or 1 Star – Eric Cinnamond, June 5, 2017| Since I didn’t have time to check on the markets last Friday, I turned to financial television for a quick update. I watched three networks and all were discussing the same topic – record high stock prices and the FANG stocks.
Keep It Simple – Seeking Wisdom, June 5, 2017| I am a big fan of Matt Brice writings. Why is that? He keeps it simple and focuses on key variables that actually matters.
America’s Dying Malls Weigh On Retailers – Footnoted, June 5, 2017| Last year was a terrible year for brick-and-mortar retailers as layoffs and bankruptcies climbed. But 2017 is shaping up to be even worse, particularly for those located in a mall.
Perrigo Restates to Correct More Than $1 Billion in Errors – Audit Analytics, June 1, 2017| Restatements are notoriously hard to predict, yet, in some cases the writing is on the wall, or in Perrigo’s case, a late filing. Back in March, we predicted that Perrigo would likely restate its historical financial statements. What we could not predict is that 85 days after the late filing, Perrigo would join the restatements club with a staggering $1 Billion restatement of net income.
Media and the Market – Investment Masters Class, June 2, 2017| The Investment Masters understand the need to maintain an independent thought process and not get swept up in the emotions of the market at any one point in time.
The Secret to Investing in Bonds – The Conservative Income Investor, June 3, 2017| No matter what type of bond investment you are contemplating, the analysis of bond safety will always require two steps.
Competitive advantage – The Economist, August 4, 2008| “Competitive Advantage” is the title of a book by Michael Porter (see article) which became a bible of business thinkers in the late 1980s.
Spotify: How Spotify Turned Free Music into a $10+ Billion Valuation – Growth Hackers| Spotify is a truly remarkable growth story. In just six years the company is valued at more than $10 billion and has more than 50 million users, 12.5 million of which pay for the service. But how did the company get to where it is today and what is its growth engine?
Why Netflix Can Turn a Profit but Spotify Cannot (Yet) – Midia Research, January 19, 2017| Netflix closed 2016 with 89.1 million subscribers and the temptation to benchmark against Spotify’s equally strong year is too strong to resist. Spotify (which celebrated its decade in June 2016) closed the year with around 43 million subscribers, 48% the size of Netflix. But a closer look at the numbers tells another growth story.
Competitive Advantage & Capital Allocation – Dorsey Asset Management, 2017| Capitalism works: High profits attract competition. But, a small minority of companies enjoy many years of high returns on capital. How? By creating structural competitive advantages, or economic moats.
Modekjesaren är lättklädd – Richard Bråse, 6 juni 2017| H&M har petats från tronen som Sveriges mest värdefulla börsbolag och aktien är tillbaka på samma nivå som för tio år sedan. Frågan alla ställer sig är vad som har gått fel. Frågan som borde ställas är hur modejätten har kunnat komma undan så länge.
Dubbla smällar för H&M – Anders Hägerstrand, 7 juni 2017| H&M rasade till nytt årslägsta på onsdagen efter att marknadens högst rankade H&M-analytiker, Morgan Stanleys Geoff Ruddell, sänkte riktkursen för klädjätten till 150 kronor. Han lyfter fram ett ledningsbyte i klädkoncernen som ett potentiellt scenario.
Framtiden ser inte ljus ut för modebolagen – Richard Bråse, 7 juni 2017| Under åren som ledde fram till finanskrisen 2008 var svenska modehandlare börsens älsklingar och miljardaffärerna avlöste varandra. Sektorn har långt kvar till gammal god form och det är svårt att bli läskad av vad Stockholmsbörsen har på modemenyn.