Posts Tagged → Business

The Business Life Cycle is one of the most helpful ways to look at ideas.

The business life cycle, also known as the business growth cycle, is the progression of a business as it passes through various stages in its operating life. The business growth cycle follows a business from the start-up phase as it crosses the breakeven point and begins to mature, slow, and eventually decline. Understanding these phases is incredibly important to investors, whether from a valuation perspective or to comprehend the future opportunity of a business.

The business life cycle, also known as the business growth cycle, is the progression of a business as it passes through various stages in its operating life. The business growth cycle follows a business from the start-up phase as it crosses the breakeven point and begins to mature, slow, and eventually decline. Understanding these phases… Continue reading →

What are Economic and Market Cycles and how to make sense of them?

Economic and market cycles (boom and bust cycles) are two interconnected economic concepts. Economic cycles relate to the fluctuations between periods of expansion and contraction within the economy, whereas market cycles refer to the fluctuations in financial markets. Although they are often intertwined and market cycles can be influenced by economic cycles, they can also run independently of one another based on entirely different contributing factors.

Economic and market cycles (boom and bust cycles) are two interconnected economic concepts. Economic cycles relate to the fluctuations between periods of expansion and contraction within the economy, whereas market cycles refer to the fluctuations in financial markets. Although they are often intertwined and market cycles can be influenced by economic cycles, they can also… Continue reading →

Here are some interesting ways to use the Total Addressable Market.

The Total Addressable Market (TAM) refers to the maximum potential size of the opportunity for a specific product, service, or solution within a given market. This represents the total demand for the product or service if every potential customer adopted it. In other words, it assumes 100% market share.

My unconventional take on using TAMs. In previous discussions, we’ve touched on the concept of the Total Addressable Market (TAM), its significance, and its application in valuation. I believe it’s important to delve deeper into this topic as the TAM is becoming increasingly crucial for investors. The global landscape is changing, with trade barriers diminishing… Continue reading →

Mapping Industry Profit Pools can be one of the best ways to discover hidden opportunities.

Industry Profit Pools can be defined as the collective profits accrued at every stage along the value chain within an industry. Profit pools differ from profit margins, which focus on individual companies. Profit pools simply indicate where the real money flows within an industry. The concept was first introduced by Orit Gadiesh and James Gilbert,… Continue reading →

🫧 Is the Artificial Intelligence industry one big bubble waiting to explode?

The world of Artificial Intelligence is evolving rapidly, with significant growth seen in companies like Nvidia and other tech giants in the AI industry. This has led to concerns about the possibility of a market bubble forming.

Firstly, I don’t know if Artificial Intelligence is a giant bubble waiting to 💥. The world of Artificial Intelligence is evolving rapidly, with significant growth seen in companies like Nvidia and other tech giants in the AI industry. This has led to concerns about the possibility of a market bubble forming. The AI industry’s expansion… Continue reading →

Porter’s Five Forces is one of the most useful business models investors need to learn.

Porter’s Five Forces is a business strategy framework developed by Michael E. Porter, a Harvard Business School professor. It is a valuable model for understanding the competitive landscape within an industry. It can also help to discover the big wide MOAT that surrounds and protects the castle.

Porter’s Five Forces is a business strategy framework developed by Michael E. Porter, a Harvard Business School professor. It is a valuable model for understanding the competitive landscape within an industry. It can also help to discover the big wide MOAT that surrounds and protects the castle. TABLE OF CONTENTS: What is Porter’s Five Forces?… Continue reading →

One of the most important studies shows that less than 5% of companies make all the money.

Less than 5% of companies drive all market returns. Understanding the fact that less than 5% of companies are responsible for all returns above bonds is crucial for investors. Research by Hendrik Bessembinder reveals that 58% of stocks fail to outperform bonds, 38% beat bonds modestly, and just over 4% of stocks drive overall market

Less than 5% of companies drive all market returns. Understanding the fact that less than 5% of companies are responsible for all returns above bonds is crucial for investors. Research by Hendrik Bessembinder reveals that 58% of stocks fail to outperform bonds, 38% beat bonds modestly, and just over 4% of stocks drive overall market… Continue reading →

What is the purpose of the Stock Market and why it’s important for investors to know?

“The purpose of a stock exchange is to facilitate the exchange of securities between buyers and sellers, thus providing a marketplace.”

What is the Stock Market? It may seem unusual explaining the existence of the stock market. The intention is to outline the basics of the stock exchange to remind investors why they are participating. Wikipedia summarizes it well. “The purpose of a stock exchange is to facilitate the exchange of securities between buyers and sellers,… Continue reading →