June 21, 2018

User and Subscriber Businesses: The Good, the Bad and the Ugly! May 29, 2018
In a series of posts over the course of the last year, I argued that you can value users and subscribers at businesses, using first principles in valuation, and have used the approach to value Uber riders, Amazon Prime members and Spotify & Netflix subscribers. With each iteration, I have learned a few things about user value and ways of distinguishing […]
Walmart's India (Flipkart) Gambit: Growth Rebirth or Costly Facelift? May 22, 2018
On May 9, 2018, Walmart confirmed officially what had been rumored for weeks, and announced that it would pay $16 billion to acquire a 77% stake in Flipkart, an Indian online retail firm, translating into a valuation of more than $21 billion for a firm founded just over ten years ago, with about $10,000 in […]
Amazon: Glimpses of Shoeless Joe? April 26, 2018
It was just over two weeks ago that I started my posts on the FANG stocks, starting with Facebook, which I decided to buy, because I felt that notwithstanding its current pariah status, its user base was too valuable to pass by, at the prevailing market price. I then looked at Netflix, a company that […]
Alphabet Soup: Google is Alpha, but where are the Bets? April 19, 2018
In my last two posts, I looked first at the turn in the market against the FANG stocks, largely precipitated by the Facebook user data fiasco and then at the effect of the blowback on Facebook's value. I concluded that notwithstanding the likely negative consequences for the company, which include more muted revenue growth, higher […]
Netflix: The Future of Entertainment or House of Cards? April 16, 2018
For better or worse, Netflix has changed not just the entertainment business, but also the way that we (the audience) watch television. In the process, it has also enriched its investors, as its market capitalization climbed to $139 billion in March 2018 and even after the market correction for the FANG stocks, its value is […]
The Facebook Feeding Frenzy: Time for a Pause! April 10, 2018
In my last post, I noted that the FANG stocks have been in the spotlight, as tech has taken a beating in the market, but it is Facebook that is at the center of the storm. It was the news story on Cambridge Analytica's misuse of Facebook user data, in mid-March of 2018, that started […]
Come easy, go easy: The Tech Takedown! April 7, 2018
If there is one thing that I have learned about markets over the years, it is that they have a way of leveling egos and cutting companies and investors down to size. The last three weeks have been humbling ones for tech companies, especially the big four (Facebook, Amazon, Netflix and Alphabet or FANG) which […]
Spotify Loose Ends: Pricing, User Value and Big Data! March 23, 2018
In my last post, I valued Spotify, using information from its prospectus, and promised to come back to cover three loose ends: (1) a pricing of the company to contrast with my intrinsic valuation, (2) a valuation of a Spotify subscriber and, by extension, a subscriber-based valuation of the company, and (3) the value of […]
Stream On: An IPO Valuation of Spotify! March 17, 2018
In the last few weeks, we have seen two high profile unicorns file for initial public offerings. The first out of the gate was Dropbox, a storage solution for a world where gigabyte files are the rule rather than the exception, with a filing on February 23. Following close after, on February 28, Spotify, positioning […]

Dr. Atul Gawande CEO of Amazon, Berkshire, JP Morgan Healthcare Company June 20, 2018
Amazon, Berkshire Hathaway and JPMorgan Chase appoint Dr. Atul Gawande as Chief Executive Officer of their newly-formed company to address U.S. employee healthcare.
Pros and Cons of Buying Berkshire Hathaway Stock June 18, 2018
I am quoted in this U.S. News and World Report/Yahoo Finance article: “Pros and Cons of Buying Berkshire Hathaway Stock”. Berkshire is currently selling at a below market average price/earnings ratio and its earnings are projected to grow at an above market average rate over the next few years, says David Kass, a finance professor […]
Why U.S. Equities Are Likely To Continue Rising To New Highs June 11, 2018
Seeking Alpha published my presentation before the Chartered Financial Analysts Society of Washington, DC on June 6, 2018. Summary (1) The outlook for U.S. equities is very bright. (2) Interest rates are likely to remain at historically low levels after several gradual increases in the Federal Funds rate in 2018 and 2019. (3) Corporate profits will […]
Berkshire Hathaway to Receive $1.7 Billion From Knauf’s Acquisition of USG June 11, 2018
Berkshire Hathaway will receive $1.7 billion from its 39 million share stake of USG which has agreed to be acquired by Knauf at $44 per share.
Warren Buffett Pays a Shareholder’s Missing Tip to Waitress June 10, 2018
From the Omaha World-Herald: Some Berkshire shareholders stiffed an Omaha waitress. So Warren Buffett sent her a check By Steve Jordon / World-Herald staff writer 7 hrs ago From the it’s-a-small-town department: Some Berkshire Hathaway Inc. shareholders weren’t patient in a downtown Omaha restaurant. Despite their waitress’ best efforts to serve a full house of […]
David Feinberg Declines Offer To Be CEO of Buffett, Dimon, Bezos Health Care Joint Venture June 8, 2018
CNBC has reported that David Feinberg, CEO of Geisinger, has declined the offer to be CEO of the health care joint venture of Berkshire, JP Morgan, and Amazon.
Buffett, Dimon and Bezos Choose David Feinberg, CEO of Geisinger, To Run Health Care Joint Venture June 8, 2018
CNBC is reporting that Warren Buffett, Jamie Dimon, and Jeff Bezos have selected David Feinberg, CEO of Geisinger, to run their joint venture to reduce health care costs.
3 Highlights of Warren Buffett and Jamie Dimon on CNBC – June 7 June 7, 2018
Warren Buffett and Jamie Dimon were interviewed on CNBC on June 7. Three highlights were: (1) Public companies should eliminate the practice of estimating quarterly earnings. They have also published an op-ed in today’s Wall Street Journal. (2) Buffett and Dimon are very optimistic about the economy. Buffett: ‘If we are in the sixth inning (of the […]
Berkshire Hathaway To Receive $2.4 Billion From Bayer Acquisition of Monsanto on June 7 June 4, 2018
Bayer will close its deal to acquire Monsanto at $128 per share on June 7. Berkshire Hathaway owns 19 million shares of Monsanto valued at $2.4 billion (as of March 31, 2018).

Gun sales plunge for Smith & Wesson June 20, 2018
American Outdoor Brands, the gun maker that owns Smith & Wesson, reports dismal earnings, with double-digit declines for sales and profit.
'Stranger Things' caused an Eggo boom. Now sales are waffling June 20, 2018
Read full story for latest details.
Tesla sues ex-employee for hacking and theft. But he says he's a whistleblower June 20, 2018
Tesla sued an ex-employee accused of hacking its manufacturing operating system and stealing company data. But that ex-employee is fighting back, saying he's being targeted by Tesla for trying to bring problems at the company to light.
Amazon, Berkshire and JPMorgan announce CEO of their health care company June 20, 2018
Read full story for latest details.
Hate on Facebook all you want. The stock's at an all-time high June 20, 2018
Facebook's stock just hit a record high on Wednesday, rising above $200 a share for the first time.
Elon Musk: Tesla worker admitted to sabotage June 20, 2018
Musk says a worker admitted to sabotaging the company's plant, and asks employees to 'be extremely vigilant.'
India's $12 billion privatization plan at risk after airline flop June 20, 2018
The government said that its effort to sell Air India "is over" for the time being. That decision will cost it billions.
American CEOs call out Trump's 'heartless, cruel' border policy June 20, 2018
Read full story for latest details.
Gatorade is going sugarless for the first time in its 53-year-history June 20, 2018
Read full story for latest details.

CW Group says unable to redeem SGD bonds; faces statutory demands from lender June 21, 2018
HONG Kong-listed engineering and renewable energy outfit CW Group expects it will not be able to repay Singapore dollar-denominated (SGD) notes and pay a final dividend to shareholders due to its inability to raise new money from investors.
Summons filed to block Singapore Myanmar Investco's US$10.8m TPR divestment June 21, 2018
A JOINT venture partner of mainboard-listed Singapore Myanmar Investco (SMI) has filed an originating summons to block SMI's US$10.8 million proposed disposal of TPR Myanmar.
Stocks to watch: Midas, MTQ, RHT Health Trust June 21, 2018
THE following companies saw new developments that may affect trading of their shares on Thursday.
Corporate digest June 20, 2018
RHT Health Trust (RHT) has received all outstanding amounts due from Fortis Healthcare for 9MFY2018 and 4QFY2018, it said on Wednesday. RHT had said in May that it was owed certain service fees as well as interest on convertible debentures which had yet to be paid. Fortis had previously provided an undertaking to RHT entities […]
Australia's Telstra unveils massive job cuts in strategic reset June 20, 2018
AUSTRALIA'S largest telecom firm Telstra Corp Ltd said it would cut a quarter of its workforce and flagged asset sales on Wednesday, as competition and new technology crush its mainstay fixed-line businesses and force a strategic reset.

Europe: Stock markets ahead at open June 21, 2018
[LONDON] Europe's main stock markets rebounded slightly in opening deals on Thursday, but investors remain on alert over any developments in a brewing global trade war.
Seoul: Stocks, won weaken on foreign selling amid trade woes June 21, 2018
[SEOUL] South Korea's Kospi stock index and the won weakened on Thursday as concerns simmered about an escalation of trade tensions between the United States and China. Bond yields fell.
Tokyo: Nikkei closes higher despite trade war fears June 21, 2018
[TOKYO] Tokyo's main stock market closed higher Thursday with a cheaper yen supporting some shares and investors shrugging off lingering fears of a US-China trade war.
Singapore stocks: STI resumes Thursday afternoon trading at 3,307.61, down 0.3% on day June 21, 2018
SINGAPORE shares were lower when trading resumed on Thursday afternoon, with the Straits Times Index dropping 8.29 points, or 0.3 per cent to 3,307.61 as at 1pm.
Asia: Markets edge up as calm returns but fears remain June 21, 2018
[HONG KONG] Asian markets edged up tentatively on Thursday as a sense of stability returns after the turmoil earlier in the week, though investors remain alert to any signs of another flare up in the China-US trade spat.

the intelligent investor

Stock selection for the defensive investor

April 19, 2018

Benjamin Graham's thoughts

The Intelligent Investor

Benjamin Graham (1894-1976), the father of value investing, said in his book, The Intelligent Investor, that one choice for the defensive investor in stock selection would be to apply a set of standards to each purchase, to make sure that he obtains (i) a minimum of quality in the past performance and current financial position

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The Intelligent Investor

April 17, 2018

Benjamin Graham's thoughts

Books

The Intelligent Investor

“To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information. What is needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework.” These words came from legendary investor Warren Buffett, the best known disciple of Benjamin Graham, the

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Are you an intelligent investor?

January 7, 2015

Books

Investment philosophy

One great bonus in reading the revised edition of Benjamin Graham’s The Intelligent Investor book is the accompanying commentary for each chapter and even for the introduction by veteran investment writer Jason Zweig. What exactly does Benjamin Graham mean by an “intelligent” investor? “Back in the first edition of this book (The Intelligent Investor), (Benjamin)

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