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”
Competitive Analysis of Starbucks: Behind The Experience
Howard Schultz, the CEO of Starbucks, has successfully transformed the coffeemaker into “the third place between your home and your work”. Could this business edge be replicated or competed? This is the central theme of our competitive analysis of Starbucks. We break down its financial report and marketing strategy to find the answer.Continue reading “Competitive Analysis of Starbucks: Behind The Experience”
Competitive Analysis of Amazon: Against The Blue Sky
- Amazon Web Services (AWS) offers an intuitively easy User Interface, flexibility, affordability along with more features. But this isn’t enough to prevent its customer to use the competitor Microsoft Azure (or even Google Cloud) as a secondary cloud provider (as backup). This circumstance allows customers to migrate completely to AWS rivals.
- Amazon is busy building economies of scope as a competitive advantage like its acquisition of Medical One, a telecare company, instead of creating or strengthening its cloud ecosystem.
- In the long run, we believe the market share of AWS could be slightly eroded gradually by more intense competition due to a lack of switching costs. We think Amazon should take care of this issue seriously, especially when the cloud is its most prolific segment.
Basic Investing Mistakes: Lesson from Body Goals.
Pursuing your body goals and your investing target may share similar problems. No, it’s not the technique or the knowledge. It is misinformation and belief about…that misinformation. These two compose the building block of basic investing mistakes.Continue reading “Basic Investing Mistakes: Lesson from Body Goals.”
Basic Investing Strategy: How to Win The Game
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.
Competitive Advantage of Tesla: Chapter II
The third quarter of 2021 illustrates the competitive advantage of Tesla due to its integrated business. In the midst of a chip shortage that trims the production of almost all automakers, Tesla still breaks the record in terms of production units. This article is the sequel to talk about Tesla’s economic moat that discussed brand power, direct sales, and low-cost producer.Continue reading “Competitive Advantage of Tesla: Chapter II”
Economic Moat of Tesla: Musk’s Relentless Effort
Tesla surely leads the way for the next-generation vehicles. It has the most advanced battery, most covered charger facility, cool car, price advantage, and strong brand. We will take a closer look at those aspects to get a better insight into the Economic Moat of Tesla.Continue reading “Economic Moat of Tesla: Musk’s Relentless Effort”
The Margin of Safety Application: Misconception
We believe our article that explains the Margin of Safety brings you here. This post is the sequel of that series. Differ from the prequel, this time we will elaborate further on the Margin of Safety application.Continue reading “The Margin of Safety Application: Misconception”
CAPEX Analysis: Scale, Barrier, and Growth
In 2019, Novartis – in its search to become a gene and cell titan, built a manufacturing facility through a 90 Billion CAPEX, setting the bar high for the entire pharma industry. It is the reason why CAPEX analysis is crucial.Continue reading “CAPEX Analysis: Scale, Barrier, and Growth”
Competitive Advantage of Amgen: November Update
The competitive advantage of Amgen, like any other pharma company, lies in its patent. We invite readers to take a look at this issue – deeper.Continue reading “Competitive Advantage of Amgen: November Update”