Author: evencio.alvarez14@gmail.com
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An Old Inuit Hunting Tale That Kills Value Investors
Newsflash: apex predators are hard to kill. But when you live amongst them, you should learn how.The native Inuit tribe developed an interesting way of dealing with apex predators. It wasn’t an all-out attack. Nor was it a strategic assault mission under the blanket of night.It was simple. It was elementary. But it was potent.The…
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How Wide Is the Equity Risk Premium? [DIRTY DOZEN]
This will all end badly, we’ve not the slightest doubt, and the only question is when. Probably not tomorrow, as we say. But that’s as far out as we’ll go. ~ Alan Abelson, “Up and Down Wall Street,” Barron’s, May 24, 1993 (Dow Jones Industrial Average at 3492) via Niederhoffer’s “Practical Speculation”, chapter “The Cult…
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Process, Risk Management and Mispricings w/ Gary Mishuris
Gary Mishuris is the managing partner and Chief Investment Officer of Silver Ring Value Partners. After working his way through the Mutual Fund world, Gary founded Silver Ring Value Partners. The Fund utilizes a concentrated intrinsic value approach in seeking to safely compound capital over the long term.Gary is a class-act investor and even better…
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Capitalizing R&D: Learn What GAAP Fails To Teach You
Last we discussed Accounts Payable and the role they play in cash flow efficiency. We learned that one company’s A/R is another company’s A/P. This week we’re analyzing one of the more complex accounting problems: capitalizing research & development (R&D) costs. We’ll learn the difference between capitalizing vs. expensing, why it matters and how it…
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The Delta Model: How To Love Customers & Win Business
Businesses that maniacally focus on serving their customers win every time. Don’t believe me? Check out this 1999 clip of Jeff Bezos during a CNBC interview. Count how many times he mentions the phrase “customer service”. Spoiler, you’ll need more hands. What Bezos understood better than anyone was the power of the Delta Model.Customer service…
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Unity Software: Breaking Down S-1 Filing
Unity Software released their S-1 filing yesterday morning. I spent the afternoon digging into the filing pulling out what I thought interesting, fascinating and down-right awesome. Here’s the link to the S-1 if you want to follow along at home.The below post is the unrolled version of my earlier Twitter thread. You can find that…
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iS tHE dOLlaR abOUt to cRaSH?
I hate to start this note off with some bad news but… there’s just no way we can ignore the elephant in the room any longer. So here goes…After doing *extensive* research over the last 37-minutes… and when I say extensive, I mean I went DEEP… I probably watched the first 1/13ths of maybe five…
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Apple Is Over FOUR Standard Deviations Overbought! [DIRTY DOZEN]
When once caught in the maelstrom of stock speculation the average man becomes more or less mesmerized, and at critical moments his conservatism, his resolutions and his theories all take flight. Under the discomposing influence of a rapid succession of changing values and alternating impulses he loses his perspective, is incapable of calm reasoning, and…
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Bobby Kraft: What I Learned From 1,000+ CEO Interviews
This week I chat with Bobby Kraft of SNN Wire and host of The Planet Micro Cap Podcast. Bobby is a titan in the micro-cap industry. He’s recorded over 130 podcast episodes and interviewed thousands of CEOs. The work he’s done to bring positive news and information to the micro cap community cannot be understated.…
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Account Payable: What They Are & Why They Matter
Last week we learned about Accounts Receivables (A/R).Also, let us know if there’s one accounting concept you want us to cover. We’d love to tailor it to your specific needs.We’re staying in the balance sheet this week and looking at another type of account. Except this time it’s on the liabilities side of things.This week’s…