Investing How to put the process of investing o work. Investing thread around everything investing, strategies, styles, formulas, valuations, history, anything to do with Investing we will discuss here.
It’s amazing how much time is spent arguing about which investment strategies or styles are better in the investing universe. Like many of you, I’ve heard the long debates about value investing being better than growth, or small-caps being higher risk and therefore not better than large caps. Even long-only strategies are considered the only… Continue reading
What is Action Bias? One of the most detrimental biases that can hinder investment returns is the tendency to act for the sake of acting. I have personally experienced the effects of action bias in my business, investing, and personal life. To illustrate the concept of taking action when it is unwarranted, I will share… Continue reading
Half the battle is just showing up… Sounds like a motivational speech… Showing up will lead to success. Just turn up at the office or the gym, and the rest will fall into place. Well, not necessarily – there is still work to be done, but showing up is the first step. 🪝 Investors need… Continue reading
My introduction to the bounce-back rate. In my 20s, I launched, expanded, and faced failures in multiple companies. Early on, I became intrigued by the concept of “bounce-back rate.” Whether in business meetings or discussions with mentors, the term was frequently used. When a prominent entrepreneur or business figure in the community encountered a setback,… Continue reading
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
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
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
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
Strategic inflection points are a critical stage in the life of a company, industry, or personal life where a significant change in the competitive environment requires a fundamental change in business strategy. It is a turning point that can lead to either a new era of growth or the beginning of decline. Much like standing at… Continue reading
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
