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”
Fundamental Analysis of Rivian: The Next Tesla?
Key points of Fundamental Analysis of Rivian:
- Unlike other EV makers, Rivian has a durable competitive advantage with Amazon on its side. But we don’t know how much this edge contributes to Rivian’s revenue.
- We are still curious about how Rivian will transform in the future. Will it be Amazon’s arm for delivery or become an EV maker that specializes in SUVs?
- Conservative management, we like it. Low debt, and a high amount of cash – may be due to part of the Amazon deal and other investments. Unlike the other start-up.
- The business model has not yet been proven.
Stock Analysis of Tesla: Risk. Opportunity. Valuation
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”
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”
Tesla Revenue Analysis: How Far it Leads?
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?”
The Margin of Safety: Why Value Investor Miss Tesla
The formal definition of margin of safety is buying the stock below the intrinsic value. This official definition doesn’t help in practice. Here we offer some thought to help investors grasp this iconic idea.Continue reading “The Margin of Safety: Why Value Investor Miss Tesla”
Investing Lesson from Palo Alto: Vision-Driven Stock
The stock price of Santa Clara-based company rises from 535 to an insane 3,554 from 2012 to 2020. During that period, only once did it record positive earning. What is investing lesson from Palo Alto Network (PANW)?Continue reading “Investing Lesson from Palo Alto: Vision-Driven Stock”
Competitive Advantage Analysis of Differentiation
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”
When To Buy and Sell: Company Cycle
The best timing to buy Amazon stock is when Jeff Bezos works in his garage(1). We are going to evaluate this investing strategy by answering the question of when to buy and sell. In that process, we incorporate the business life cycle as a guide.
- Amazon is out of big ten largest market cap global 2014