An Emergent Video Streaming Trend in the World’s largest Democracy (India)
Many expect India to become a cornerstone of global growth and the next major frontier for investors in their pursuit of value. While India’s ultimate “breakout” is expected to map something similar to the Chinese economy, the timing of it is the subject of an open debate, however most agree we will likely see it […]
Netflix and the state of the streaming industry
On January 15, 2019, Netflix announced that it would be raising the monthly prices on all three tiers of its subscription streaming service by as much as 18%, barely 15 months since the last price increase. This news was well received by the market, as any price increase is pure profit for Netflix that can […]
The rough seas of 2018
Choosing businesses in which to invest is, in many ways, like choosing which boat you would to take across a vast ocean. Some boats are bigger, sturdier and slower; while some are lighter, more agile and faster. But it’s not just the boat that matters. Anticipating the weather conditions is often just as important. Value […]
US retail: a continuation of profitless growth?
The 2018 Black Friday shopping weekend is all but over and initial reports from retailers, Wall St analysts and third-party analytics providers suggest a robust start to the holiday season. Unsurprisingly, online sales continued to take share, with Adobe Systems estimating a 26% year-over-year increase in online sales through Black Friday, and various estimates of […]
HQ2: Amazon expands its data empire
Amazon has all but confirmed the two winning cities of its search for a second headquarters (“HQ2”) – Crystal City, VA and Long Island City, NY, in the suburbs of Washington, DC and New York City, respectively. The project was initially proposed as an equal to the company’s Seattle headquarters with a promise of 50,000 […]
The difference between a good product and a good business
Last month, Instagram co-founders Kevin Systrom and Mike Krieger caused a stir in the tech community when they walked away from the app they created due to tensions with parent company Facebook and CEO Mark Zuckerberg. According to various tech publications, the co-founders had become annoyed at the increased meddling by Facebook executives with Instagram’s […]
The clandestine threat from China
Earlier this month Bloomberg Businessweek published an article with allegations that were, to say the least, explosive. The article asserts that during the manufacturing process, China had inserted trojan-horse chips into the motherboards of servers destined for the U.S.–an extraordinary feat, if true, as well as a grave security threat to any company or government agency […]
The Collision of Fundamentals and Technicals: New GICS Sector Definitions
Fundamental bottom-up investors like ourselves generally steer clear of technical indicators as they often lay diametrically opposite to our value investing framework (i.e. top-down, short-term, algorithmic, etc.). However, significant changes to the Global Industry Classification Standard (GICS), one of the most widely used frameworks to delineate sectors, will come into effect on Friday, September 28, 2018 and is worth reviewing given several names […]
The Class 8 Frenzy
Recent months have seen U.S. Class 8 truck orders hit all-time records. The current cycle is arguably the strongest ever, and is being driven by a combination of structural and cyclical factors. For a number of reasons, this cycle is different from the one that came before it, and there are potentially nuanced ways to […]
Keep on trucking
“Truck drivers: the unsung heroes on the road” read the title of an article discussing the key role served by U.S. truck drivers. Despite the accolades, one thing remains for certain: driving trucks in the U.S. is a demanding job, with fewer and fewer people opting for this career. The resulting truck driver shortage in […]
