Trading your own equity
findthemoat By definition, value oriented investment processes seek to derive a fundamental valuation of a company independent of its market valuation – end game being to identify a mismatch between the…
Financial Ratios as a System Input
Companies are essentially dynamic systems comprising of numerous moving components subject to a myriad of internal (e.g. management) and external (e.g. competition) forces. Financial statements in turn provide periodic snapshots…
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…
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)…
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…
How to think about Domino’s Pizza
Over the past 12 months I have received numerous emails from readers asking for my thoughts on Domino’s Pizza (DMP) – not surprising given the huge earnings multiple it trades…
Signals from Management Incentives
Economic incentives govern how participants behave and interact in a free market economic system. In context of company analysis, spending some time understanding incentives is one of the most rewarding…
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…
MYOB versus Xero
Technology inflection points present incumbents with choices and insurgents with opportunities. In the world of SME accounting today, software is undeniably shifting from the desktop to the cloud. The primary…