Consistent Compounders

Turn and Face the Strange

Michael Mauboussin and Dan Callahan have been producing some brilliant research pieces off late for Morgan Stanley’s Counterpoint Global Insights. This one is about what investment firms can learn from the world of sport about adapting to change. Basketball fans will particularly enjoy this as it has plenty of data-based analysis on the rather slow adoption […]

Sep 12 . 6 MIN READ
Consistent Compounders

This is why all electric cars look exactly the same

Since a electric car is a computer on wheels, this article by Alistair Charlton posits that all electric cars will look the same (for much the same reason that all laptops and all tablet PCs look the same): “The future of car design is all about skateboards and top hats. The former refers to the flat, […]

Sep 12 . 3 MIN READ
Consistent Compounders

Jack Ma’s Bund Finance Summit Speech

On 24th October 2020 Jack Ma gave a speech which seems to have catalysed a Chinese government crackdown on that country’s super-successful internet businesses. Whilst there has been lots said of what exactly Jack Ma said that day and why that led to Ant Financial’s IPO being jammed by the regulator and then the broader crackdown […]

Sep 12 . 5 MIN READ
Consistent Compounders

Downside Protection > Upside Generation in Small Caps

The need of protecting portfolio value in a downturn is equally, if not more, important than chasing returns in a bull market. Compounding from a larger base generates higher returns than compounding at a faster pace from a much smaller base. Indeed, sharper falls (drawdowns) during market downturns and higher frequency of such falls are […]

Sep 09 . 9 MIN READ
Consistent Compounders

Why Zuckerberg Wants Us All in the ‘Metaverse’

As the chart in this article shows, Google searches for ‘Metaverse’ shot through in August with references to it by some of the world’s most powerful people, most notably Facebook’s Mark Zuckerberg. This article by Scott Galloway, a Professor of Marketing at NYU Stern, first helps us understand what various people mean when they say […]

Sep 05 . 3 MIN READ
Consistent Compounders

Here’s why Robert Shiller’s two stock-market indexes are telling wildly different valuation stories

Whilst PE multiples have limited ability to tell us anything about how richly or poorly valued a security is, especially for companies who consistently compound earnings over long periods of time, they weren’t particularly useful in valuing cyclical companies in the developed world either. This is because the PE would be understated as earnings rise […]

Sep 05 . 2 MIN READ
Consistent Compounders

Elon Musk’s Trip Through Hell: Inside the 2018 Scramble to Avoid the Collapse of Tesla

Elon Musk is among the richest people in the world today with his company Tesla’s shares soaring through last year. Yet, it was as recently as 2018 that the company was struggling to make a profit, get its production schedule going and Musk himself embroiled in a punch up with the regulator. This dramatic turnaround […]

Sep 05 . 3 MIN READ
Consistent Compounders

The perfectionism trap

We’ve been trained as kids and we in turn teach our kids to strive for perfectionism in everything we do. This approach to life has helped many of us in our achievements individually as well as helped humanity progress collectively. However, as ever, the approach to perfectionism has its downside, especially in terms of mental […]

Sep 05 . 3 MIN READ
Consistent Compounders

Unethical? Unnecessary? The COVID-19 vaccine booster debate intensifies

Science Magazine is a highly respected source and authoritative source which non-experts like us can use to understand the latest developments and debates. In this piece Ms Vogel lays out the contours of what is bound to be raging debate over the next 12 month: is there a need for people who have received their […]

Sep 05 . 3 MIN READ
Consistent Compounders

An Afghan tragedy: the Pashtuns, the Taliban and the state

Those who understand how closely the fates of Afghanistan, Pakistan and India are linked will enjoy reading this brilliant analysis of why Afghanistan has been and will be for some time to come a troubled country. The piece also raises powerful questions about whether the rest of the world – and especially the West – […]

Sep 05 . 4 MIN READ
Consistent Compounders

The Power of Quantifying the Qualitative Aspects of Investing

Forecasts of the growth prospects of any business are based on several factors, many of which are qualitative in nature, such as management quality, capital allocation discipline, the ability to disrupt rather than be disrupted by unforeseeable events, etc. Investors who arrive at these decisions based on their personal beliefs or myths expose themselves to […]

Sep 01 . 7 MIN READ
Consistent Compounders

The coming battle over the metaverse

Many of the digital aspects of our lives today would have seemed like science fiction even a couple of decades ago. Why, the way most of us, at least in the knowledge economy have taken to working online seamlessly through the pandemic is something few could have fathomed until recently. The buzz word these days […]

Aug 22 . 3 MIN READ

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