A new series covering companies in the 8 to 80 Portfolio… 1) Why is Netflix an 8 to 80 Brand? Netflix is increasingly becoming a part of every household, and its viewers span multiple generations, from Gen Z to Boomers… It is fast becoming a global brand, with international growth outpacing US growth over the […]
In an investment world that is increasingly shifting towards passive index funds and ETFs, what’s the case for owning individual stocks? For Howard Lindzon (founder partner at Compound), the answer simple: do it for profit, and do it for joy. Howard has a unique view of the investing landscape, sitting at the intersection of private […]
“Ask no questions, and you’ll be told no lies.” – Charles Dickens, Great Expectations What returns are you expecting from equities going forward? “At least 20% a year.” That was a conversation I had last week with an investor. It gives you an idea where we are in terms of sentiment. How did they arrive […]
Snowflake went public today. Who? Snowflake, a cloud-based data storage and analytics company. You had me at “cloud.” What’s the ticker? $SNOW. Awesome, catchy and easy to remember. Are they profitable? No. They lost $349 million in the fiscal year ending in January and $171 million in the first six months of this year. Even […]
Peloton reported earnings this week and in after hours trading its market cap moved above $26 billion, nearly as high as Ford. A year ago Peloton went public with a market cap of $7 billion. After posting this chart on twitter, the responses can be summarized as follows: “Ad hominen insult. Ford is going to […]
Put these charts on your wall for reference the next time you think… Stocks can’t go up during a recession… It’s “oversold” or “at support” and has to bounce… It’s “overbought” or “at resistance” and can‘t possibly go higher… Investors are rational and would never pay $239.50 for something worth $22.83… It can’t go below $0… Interest rates can’t go […]
Would you pay someone $205 for an asset worth only $21.87? Of course not; what a ridiculous question. And yet, investors in the Ethereum Trust ($ETHE) are doing just that, paying a stunning 837% premium above the net asset value (NAV) of the underlying holdings (Ethereum, a cryptocurrency). Why would anyone do such an irrational […]
The yield on investment grade corporate bonds has moved all the way down to 2.35%. If the month ended today, that would be the lowest monthly close in history. Why is this important? Because the single best predictor of future returns for bonds are its starting yield. On average, the higher the starting yield, the […]
High Yield credit spreads are lower today than they were during market corrections in 2011 and 2016. The same is true for Investment Grade credit spreads. Why is this notable? There were no recessions in 2011 or 2016 and today were are faced with what could be the largest economic contraction since the Great Depression. […]
If the dichotomy between markets and the economy has left you dazed and confused, you’re not alone. For on one side of the ledger, you have… 16.5% of the US labor force on unemployment, the highest on record (data back to 1967). US Employment to Population Ratio down to 51.3%, a new low. The prior […]