Barriers to Entry Why have luxury goods companies like Möet Hennessy Louis Vuitton and Hermes been long-term winning companies and stocks? They create a barrier to entry to competitors through two methods. Signaling The first is signaling. What do the… Read More
Bottleneck Business A bottleneck business is a term created by Akre Capital Management and it describes a business that: a) sits atop large, global, secular growth opportunities fed by multiple industries and geographies, b) has those opportunities funneled (hence the… Read More
The historical dividend per share chart for The New York Times is horrible. But if we zoom into the last 5 years, it gets interesting. That’s an 11.8% CAGR. The last few years highlight a structural business shift. This strategy… Read More
Why do Luxury goods providers have a moat around their business? How do Luxury goods providers maintain their market position and their social position with consumers? They’re just selling a product, albeit; a high-quality and expensive product. In theory, a… Read More
Pullback Shopping List It’s happening. We’re finally getting a pullback in the stock market. Every pullback presents an opportunity to add to an existing position or a new position if its stock price drops below our estimate of fair value…. Read More
Amazon recently announced that their UK division will stop accepting Visa branded credit cards. The stock dropped over 5% and lost around 20 billion in market cap. Was the market reaction to the Amazon news justified? Or was it an… Read More
Enron went bankrupt after their stadium naming rights deal. So did Adelphia, Worldcom, and Chesapeake Energy. This created the stadium indicator. Any company that does a stadium naming rights deal is going to go bankrupt and you should sell their… Read More
We got more clarity from Disney’s management about when they’ll start paying a dividend again and repurchasing shares during the Q3 2021 Earnings Call. And finally, in light of the ongoing recovery from the COVID-19 pandemic as well as our… Read More
Broadridge Financial Solutions is a company that a lot of investors haven’t heard of but it is a systematically important company for the smooth functioning of the capital markets. In this video, Glenn discusses: How Broadridge builds its hidden monopoly… Read More
Microsoft is riding two secular growth trends, the rise of cloud computing, and the shift towards software as a service. The growth from both trends combined with Microsoft’s high returns on capital will fuel its future dividend growth and share… Read More
Bonds are essentially loans. You give a company or some other entity money, they pay you interest, and eventually give you your original investment