Return on Capital

Garmin: An Anagram of Margin [GRMN]

PNDs to Smartwatches  When I ask anyone in their 30s or 40s about Garmin, they invariably respond with, “Didn’t they sell those windshield GPSs back in the day?” Garmin was founded in 1989 but didn’t rise to prominence until 1998 when it unveiled its handheld GPS system. Over the next decade, Garmin completely dominated the …

Garmin: An Anagram of Margin [GRMN] Read More »

To access this post, you must purchase YEARLY SUBSCRIPTION or MONTHLY SUBSCRIPTION.

Mid-Year Review [December 2020]

The second half of the year gave me the opportunity to analyze some very high-quality companies, including Arista Networks, United Health Group, Netflix and, most recently, Disney. As I said in my first mid-year write-up, you will find a swath of different types of opportunities here. I talk about deep value companies [Rolls Royce, Simon …

Mid-Year Review [December 2020] Read More »

To access this post, you must purchase YEARLY SUBSCRIPTION or MONTHLY SUBSCRIPTION.

Disney and Unamortizing Assets

Disney’s Unamortizing Asset Most assets amortize. Buildings depreciate, customers churn, patents expire, and wells deplete. A business must continually replenish these assets in order to remain competitive. Absent maintenance reinvestment, every business is a melting ice cube of assets – both tangible and intangible assets. For example, an oil well producing 100 barrels a day …

Disney and Unamortizing Assets Read More »

To access this post, you must purchase YEARLY SUBSCRIPTION or MONTHLY SUBSCRIPTION.

Vertical Integration in Media: Netflix

The Queen’s Gambit A month ago, Netflix’s new limited series “The Queen’s Gambit” took the world by storm. For chess enthusiasts like myself, the allure was the central role chess played in the film [Beth Harmon’s games were allusions to famous World Chess Championship matches, openings like the Sicilian were featured prominently, etc.] Although, I …

Vertical Integration in Media: Netflix Read More »

Intro to Defense Contracting and Lockheed Martin

The Making of Lockheed Martin When I read the book “Prophets of War” [which is a must-read for anyone invested in NOC, LMT, RTX, etc.], the following sentence stood out to me: “It [Lockheed Martin] is the nation’s stop government contractor, with $36bn in federal contracts in 2008 alone. That comes out to roughly $260 …

Intro to Defense Contracting and Lockheed Martin Read More »

To access this post, you must purchase YEARLY SUBSCRIPTION or MONTHLY SUBSCRIPTION.

Interview with Air Products IR [APD]

[Mun Sheih requested not to be recorded, so a transcript is not available. Interview Date: July 9th, 2020] Mun Sheih is the head of IR at Air Products. The biggest takeaways of the call were (1) you can utilize “piggybanking” and “density strategies” to drive incremental margins in regions where there is an on-site presence; …

Interview with Air Products IR [APD] Read More »

To access this post, you must purchase YEARLY SUBSCRIPTION or MONTHLY SUBSCRIPTION.

Vertical Integration in Healthcare [UNH, CVS, ANTM, CI]

The U.S. Healthcare industry is politically charged and riddled with complexity, prompting most investors to hold their noses and look the other way. It might pay to pay attention, though. After all, how else would you have realized UnitedHealth Group was a 10-bagger over the last 10 years [~27% annual return since September 2010]? A …

Vertical Integration in Healthcare [UNH, CVS, ANTM, CI] Read More »

To access this post, you must purchase YEARLY SUBSCRIPTION or MONTHLY SUBSCRIPTION.

Okta and Base Rates

Any student of psychology knows the famous “Librarian and the Farmer” question posed by Daniel Kahneman in Thinking Fast and Slow. “As you consider the next question, please assume that Steve was selected at random from a representative sample. An individual has been described by a neighbor as follows: ‘Steve is very shy and withdrawn, …

Okta and Base Rates Read More »

To access this post, you must purchase YEARLY SUBSCRIPTION or MONTHLY SUBSCRIPTION.

Bond Markets and Electronic Trading [MKTX and TW]

“The Fox knows many things, but the Hedgehog knows one big thing.”  Greek poet Archilochus  A Market Stuck in the Past  This quote aptly describes the differing strategies of MarketAxess and TradeWeb, which IPO’d last year. TradeWeb is the fox and MarketAxess is the Hedgehog. At their core, these companies are trading platforms, much like MSCI and SPGI. …

Bond Markets and Electronic Trading [MKTX and TW] Read More »

To access this post, you must purchase YEARLY SUBSCRIPTION or MONTHLY SUBSCRIPTION.

Interview: Call with AutoNation IR [AN]

AutoNation is one of those surprisingly resilient companies that isn’t talked about enough. It was founded in 1996 by none other than Wayne Huizenga. Prior to AutoNation, he founded Waste Management and was instrumental in its astronomical growth. Prior to Waste Management, he co-owned Blockbuster Video back when it was one of the best performing …

Interview: Call with AutoNation IR [AN] Read More »

To access this post, you must purchase YEARLY SUBSCRIPTION or MONTHLY SUBSCRIPTION.