Food for Thought #35 // Links🔗

Some interesting content I stumbled over.

Swen Lorenz with his newest weekly dispatches* . He wrote a three-part series on How to invest in frontier countries (Iran, Uzbekistan, Iraq); and he reviewed a successful crisis investment in Argentina, an idea he sent out to his paying-members some weeks ago.

The management sniff test provides a good check-list for potential red flags regarding management quality.

Vitaliy Katsenelson explains How We Invest in Inflation.

Joachim Klement on Investing with Am I getting old? We that we ‘don’t get crypto‘ are we just too old (and stupid) to understand all the (alleged) advantages from crypto or are we the sane investors not falling for this decade’s investment fad, prefering old-school (electronic) cash to pay without consuing unthinkable amounts of (dirty!) energy.

Bryan Lawrence from Oakcliff Capital explains during an MOI global interview (transcript) another problem is that the value of a business with a strong customer value proposition and great unit economics but negative free cash flow is suspect to a value investor. A value investor says, “Well, if it’s so cheap, it should have great cash flow today.” But what if those negative free cash flows represent the rational decision by management to reinvest in the business to gain scale?

Marc Rubinstein from netinterest about Maker DAO, the Decentralised Bank.

GMO reminds us that there are no bad assets, just bad prices. They refer to the high growth companies that could be too expensive today.

Company news

  • Oriental Watch (398 HK) with a positive profit warning, results for their FY 2021 (ended in March) are expected for June 23rd (Wed next week). Results from mainland are very strong for some months now. Recently, speculation in expensive watches seems underway (link).

Best and happy investing, s4v


* marks an affiliate: if you want to become a paying member to Swen’s world-class content please use my link. hte price for you is the same. I might receive a referral bonus (money).

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