The concern with AbbVie’s blockbuster biologic Humira is the lost of patent exclusivity in the U.S. and Europe over the next two years. The worry is revenue from Humira will drop off a cliff as generic drugs enter the market…. Read More
The craze surrounding cryptocurrencies and initial coin offerings is an echo of the South Sea Bubble that hit England in the early 1700s. South Sea Bubble The South Sea Bubble wasn’t just a bubble related to trade involving the South Seas,… Read More
On Friday, July 7, we sold Kraft Heinz Co. (KHC). Kraft Heinz is a long-term holding in AMM Dividend Strategy portfolios. We first received shares when the original Kraft split into 2 companies, Mondelez (MDLZ) and Kraft Foods (KRFT). Then… Read More
A key component in the economic profit models I ran for Starbucks is the assumption that Starbucks will maintain a growth rate of 9% over the next 5-10 years. A common estimate I’ve seen in other research pieces. The question… Read More
[edit]: My original economic profit model had an error. It was overestimating future invested capital. I kept the original images of each economic profit model but added updated values below them. This also changes my conclusion about Starbucks being overvalued… Read More
How would you rate this quote? “You have to be confident as you face the world each day, but you can’t be too cocky. Anyone who thinks he’s going to win them all is going to wind up a huge… Read More
We have a cognitive quirk. We have a bunch but let’s focus on one. When faced with a hard or complex problem instead of answering it we swap it for an easier question to answer. We believe we have answered… Read More
Blockbuster dominated the movie rental business. It had stores all over the U.S. Renting movies was a good business with good margins. The big drawback was when the movies were not returned on time. With a DVD sitting in someone’s… Read More
The irony of this post is not lost on us. An active manager excited about another active manager moving more towards factor and algorithmic based investing. On Tuesday, BlackRock laid out an ambitious plan to consolidate a large number of… Read More
Morningstar making the case for a long-term investment in Railroad stocks. One of the big reasons is taxes. The railroad stocks are not multinationals. They only operate in the U.S. and they pay the U.S. corporate tax rate. UNP Effective… Read More
On Tuesday we sold a portion of our position in Disney. We still have a high conviction for Disney as it integrates the recently