Imagine this situation. You have a $1,000 investment and if this year you gain 50%, your money will be $1,500 – that is $1,000 plus (50%$1,000 = $500). The next year, the economy was bleak and affected your investment, so it lost 50%. Your money is $750, which is derived from $1,500 less (50%$1,500=$750). What is the message from this case? Your brilliance could be wiped out easily by mistakes. Decision-making to avoid mistakes should be a priority.Continue reading “Decision-Making to Avoid Mistakes: Misconception”
From the customer perspective, Disney is representative of a perfect User Experience. It tells a magical story in movies, then actualizes it in the real world through the Theme Park. Our competitive analysis UX (User Experience) tries to identify another company with a similar edge.Continue reading “Competitive Analysis UX: How Mediocre Product Win”
Analysis of Netflix Stock is focused on answering this question: It loses 200 million subscribers in the first quarter of 2022. The streaming giant plan to launch an ad-supported program to cut the expense and offer lower subscription fees for the customer. Will this decision help company to regain or at least retain its customer?Continue reading “Analysis of Netflix Stock: Ads. New Chapter of Streaming”
Too Long Didn’t Read: for Basic Investing Strategy:
- In the long run, earnings and cash flow matter most.
- An economic moat – or technically, competitive advantage, is a factor that could preserve (or even grow) earnings and cash flow.
- Time plays an important role, a high number of ROIC is useless if it can’t last in the long run. Time becomes the test for ROIC.
If we inspect carefully the number of subscribers lost, actually Netflix is just fine. The streaming giant only lost 200 thousand subscribers from a total of 221 million. It is a tiny fraction, less than 0.1%. It is no big deal. Netflix said that number comes from 700 thousand losses due to Russian things. If we neglect Russia – Ukraine number, Netflix has an additional 500 thousand subscribers. Not bad. Far from it. Case closed. So, why we are here? To address a more important issue: Netflix’s Competitive Advantage.Continue reading “Netflix’s Competitive Advantage is Losing?”
In the last sequel of the Tesla episode, we know that Tesla has an impenetrable economic moat and promising earning power. But, with a sky-high valuation, is it worth buying? Our stock analysis of Tesla tries to shed the light.Continue reading “Stock Analysis of Tesla: Risk. Opportunity. Valuation”
Here is the transcript (edited – smoothed – filtered) version of the discussion about Tesla revenue analysis in our small-hidden group. As usual, our answer always tries to give insight beyond the number that is written in the financial report.Continue reading “Tesla Revenue Analysis: How Far it Leads?”
So far, we have tried to fix some investing rule misunderstandings. We have redefined and explained many investing terms like intrinsic value, the margin of safety, growth versus value, and others. Today we try to target one of the most used quotes in the stock market: “One bird in the hand is better than two birds in the bush”.Continue reading “Investing Rule Misunderstandings: Birdless Bush”
Many resources – whether it is Reddit thread, YouTube video, or blog – often quoted what Warren Buffett says and what he writes. Unfortunately, only a few (including us) give a deep analysis of Oracle’s portfolio. We believe, looking carefully at his portfolio, investors could understand more about Warren Buffett Investing Strategy.Continue reading “Warren Buffett Investing Strategy. Berkshire Monopoly”
Some investors may confuse differentiation products with a durable competitive advantage. They assume that the production and fixed costs could be distributed among different kinds of products, thus could sell their product lower than competitors. Well, is it true? Starting from this, we are going to develop some competitive advantage analysis of differentiation.Continue reading “Competitive Advantage Analysis of Differentiation”