Food for Thought #50 // Links

This time the most interesting content I stumbled over includes: good CEOs, turnarounds, ESG, change, conviction, Japan, Asian stock ideas, hype cycles,…

Howard Marks’ new memo The Winds of Change was not a must-read for investors this time. But, it should be a must-read for the broad population (most of all politicians/youngsters/elderly) in Europe an elsewhere to understand todays public spending/indebtedness that got out of hand. (My summarized view on Germany: fucked)

GreenWood’s Q3 Letter on Defense, Offense & Conviction.
(Defense & offense is more in a business sense here, vs a portfolio positioning)

A great post from The Professor about good CEOs, wrong pictures and our biases thereof, within his corporate life cycle structure. Damodaran writes the following, which I think is mostly forgotten in the broader technology sector (many investors include high potential growth forecasts, but seldomly account for potential disruption)

If I were a case study writer, and thank God I am not, I would not rush to write case studies or books about successful tech company CEOs, because many of those same CEOs will become case studies of failure within a few years. If I am an investor, I would worry more than ever before about giving up voting power to founder/CEOs, even if they are well regarded, because today’s star CEO can become tomorrow’s problem.

Daniel Gladiš (Vltava) explains Why he likes the Japanese stock market.

Asian Century with Borrowing Asian Ideas from Funds, part 3.

KoI on How to lower your cost of capital using ESG. I agree with ‘I don’t like ESG ratings for many reasons, but this simple box-ticking exercise that is all too common with ratings agencies is one key shortcoming of ESG ratings.’ But still, publishing more so called ESG data can lower a company’s CoC.

Swen Lorenz with his weekly dispatch* on another blog to watch. And another piece on the remarkable turnaround of SeaWorld Entertainment after a crisis brought on by ESG. And the Gartner Hype Cycle – especially important with all those ‘the next amazon’ narratives.

Wexboy turns 10yrs. A great record. That goes for the blog and his investment record. Congratulations!

ProfitlichSchmidlin ask Diversifikation: Börsenweisheit oder Börsenmythos?

Doomberg asks What If Electricity Were Free? I discussed the same question with a friend while running some months ago. We also concluded that copper would be a winner.

Marc Rubinstein with Free Trades. He explains Payment for Order Flow the EU is about to disable via regulation, and introduces Freetrades, a UK version of Robinhood but without PFOF. Might also be a problem for Trade Republic.

And in The Quest For Monopoly he writes about monopolistic stock exchanges (esp. NYSE), that earn very high profits on selling their data to forced buyers (brokers complying with best execution) but might lose money on their trading business.

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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