Debundling the Newspaper

Debundling the Newspaper

Mass circulation newspapers have borne the brunt of “disruption” by the internet. Clearly, they are trapped in a death spiral of declining circulation and revenues. Yet our local newspapers remain as influential as ever and in some cases their readerships have never…

Domino's valuation arbitrage machine

Domino’s valuation arbitrage machine

In How to think about Domino’s Pizza, we explored the notion of Domino’s (ASX:DMP) astonishing share price performance being attributable to it being a seller of small businesses (i.e. franchises) rather than as a seller of pizzas. Here I would like to expound on this theme of…

Dissecting Afterpay

Dissecting Afterpay

Often we come across growth investment opportunities where (1) current valuation does not make sense under any traditional valuation frameworks, yet; (2) the company is clearly gaining traction in the real world and will “get to the valuation” just by continuing…

The long and short of it

The long and short of it

Why do most of my articles have a negative bias? Am I an evil short-seller conspiring against honest fair dinkum Aussie companies (and investors)? For what it’s worth, I will try to convince you here why I am not. The negative bias can be quite…

Beneath Silver Chef's polish

Beneath Silver Chef’s polish

Not all earnings growth are created equal. In itself, earnings growth can be either accretive or dilutive to value. Achieving earnings growth is actually quite simple once you have a viable business model. As long as your return on capital is greater than…

Investing in Trump

Investing in Trump

I’ve always been a fan of Peter Thiel. His musings on the ideology of competition (from his book Zero to One) is in my view a must read for anyone interested in business. As the quintessential Silicon Valley elite, his vocal…