Category: Research
-
Three Useful Mental Models For Investing
This week I’ve started researching an exciting new investment idea that I’ll share with you this coming weekend. The concept combines three of our favorite investing mental models: Marshmallow-Test, Cult-like Communities, and Paradox of Choice. As such, I thought I’d scribble a quick note outlining what these models are, why we love them, and how we’re…
-
Very Dangerous…
One telephone conversation with Gates in 1993 sticks in Ellison’s mind. “It was the most interesting conversation I’ve ever had with Bill, and the most revealing. It was around eleven o’clock in the morning, and we were on the phone discussing some technical issue, I don’t remember what it was. Anyway, I didn’t agree with…
-
Did Small-caps Just Bottom?
“Early in life, I had noticed that no event is ever correctly reported in a newspaper.” ~ George Orwell (h/t Jesse Stine) Good morning! In this week’s Dirty Dozen [CHART PACK] we take a look at the conflicting data of horrid breadth and new all-time highs and then dive into similar past instances to see what…
-
Village Farms (VFF): Lowest-Cost US Cannabis Producer
Village Farms International (VFF.TSX) operates five high-tech greenhouses across Canada and the United States. The company has ~500 acres of growing area and sells 80%+ of its products to North America’s foremost “big box” grocers and retailers.Today, VFF leverages its greenhouse produce scale to grow the highest-quality, lowest-cost cannabis through its 100% owned subsidiary, Pure…
-
Deflating Reflation…
“Every limitation has its value, but a limitation that requires persistent effort entails a cost of too much energy. When, however, the limitation is a natural one (as, for example, the limitation by which water flows only downhill), it necessarily leads to success, for then it means a saving of energy. The energy that otherwise…
-
Investment Case Study Series: WD-40 (WDFC)
Everyone knows WD-40 (WDFC), that blue and yellow can with the red cap. Odds are you have some in the garage right now. It’s one of those home cure-alls that you should always keep around, like duct tape or 550 cord. WD-40 fixes squeaky doors, tight locks, and smooths furniture joints. There are over 2,000…
-
Bull Quiet versus Trend Fragility
“Your pain is the breaking of the shell that encloses your understanding. ”~ Khlail Ghibran Good morning! In this week’s Dirty Dozen [CHART PACK] we look at the current market regime and discuss the characteristics and statistics for it. We then contrast this with the odd divergences we’re seeing in breadth and the ever-rising Trend Fragility…
-
eDreams ODIGEO (EDR.BME): The Costco of European Online Travel
EDR is an asset-light, resilient online-travel agency (OTA) rapidly growing its high-margin member subscription business while connecting the highly fragmented European airline travel industry. The company currently sports a 37% market share in Europe, 2.3x larger than its closest competition. It is also the world’s second-largest OTA by flight revenue, behind Trip.com.COVID-19 was arguably the…
-
A CAPEX Recovery…
“I’ve gotten so old I can’t remember the names of those ladies at the Old Howard, but I can remember that all you got was a flash of this or that, before they waltzed off. Stock market tops are like that. You know it’s there somewhere if you squint hard enough, but you never quite…
-
Lojas Quero-Quero (LJQQ3): A Home Improvement Retailer Playing Unfair Games
Lojas Quero-Quero (LJQQ3, “Quero-Quero”, or “Quero”) is the largest specialty home improvement retailer in Brazil with more than 400 stores in Rio Grande do Sul, Santa Catarina and Paraná. The Company offers its customers a complete solution in construction materials, complemented by home appliances and furniture. Quero has barely tapped its addressable market and has a…