Amazon Logistics is the company’s next big disruptor
Contrary to the mainstream market view that AMZNL is still in the early stages of rollout, the service’s ramp up has been exponential and it may continue to take share from the incumbent parcel companies at a faster than expected pace.
Tidbits from the world of retail
Key excerpts from the Morgan Stanley Global Consumer & Retail Conference in New York. The conference afforded us the opportunity to hear from a range of companies, keeping our finger on the pulse of the U.S. consumer, as well as scouting for new investment ideas.
The Big Business of Coffee
From a somewhat accidental beginning, coffee has grown into one of the most popular drinks in the world, generating a massive ~$560 billion per year according to Euromonitor. The U.S. is the largest coffee market in the world where ~$84 billion or ~15% of the global market is located which has been growing at a robust ~5% p.a. for the last decade and a half.
The shift away from a contrarian mindset
Why exactly are investors and society today becoming more binary in their thought processes? The core of investing is assessing probabilistic outcomes and so by thinking in binary outcomes or following market sentiment, it is possible to miss out on great contrarian opportunities.
A follow-up to Apple’s services strategy
Apple, known for selling premium hardware at a very premium price, appears to be taking a more elastic approach to pricing as the global smartphone cycle extends further into maturity.
Bond Ratings Firms Throwing Softballs
As long-time readers will know, the Montaka funds have been short the shares of Kraft Heinz. One aspect to our short thesis is the enormous $31bn debt burden encumbering KHC.
Is Investing the Same as Gambling?
Investing can take many forms, but it typically involves buying an asset for less than it is worth. Regardless of the form the investment takes, when determining the value of any asset it is important to think probabilistically – that is, acknowledging that there are many possible outcomes that can eventuate in the future. So […]