$ABNB The lockup period for Airbnb ends today. In this thread I explain what a lockup period is and how it could effect the short-term price action of the stock:
A lock-up period is a pre-determined amount of time following an IPO (initial public offering) where large shareholders (executives etc.) are restricted from selling their shares:
Lockups can place enormous selling pressure on a stock. Lets use $UBER as an example, the company IPO'd at $42 per share and fell to the sub-30s upon lockup expiration.
It should be noted that not all lockup expirations will behave the same. Other factors that could impact price-action are valuations, recent earnings reports and macroeconomic conditions. As of right now $ABNB has a NTM EV/S of 14.5 and EV/EBITDA of 114.9x
As of today, $ABNB is down ~5% on average volume. This week should be telling as to the post-lockup period behaviour of the stock.
If you want to learn more about $ABNB @Invesquotes completed an informative deep-dive on his substack. If you would like to see more educational threads like these like and share it helps me out a ton! @mukund how do you think $ABNB reacts this week to this period ending?
• • •
Missing some Tweet in this thread? You can try to
force a refresh
$LVMH's Bernard Arnault is often known as "The Wolf in Cashmere", a nickname garnered for the predatory way he approaches acquisitions.
However, sometimes a company survives unscathed. Hermès $RMS.PA $HESAY is one of those instances. Here's how they did it 🧵
1/ This tale arguably starts with the Hermes’ desire to fund expansionary efforts. In 1993, Jean-Louis Dumas, the then-captain of this luxury behemoth’s ship, decided to float 4% of its shares in 1993, a figure that was later increased to 25% shortly thereafter.
2/ Arnault, seeking to bolster his luxury empire with the addition of one of the most important pillars of the industry, saw this as an opportunity, unable to pass up the intrigue of an acquisition attempt with so much of the company trading publicly. Enter the Wolf in Cashmere
The founder of Copart, Willis Johnson, demonstrated a masterclass in entrepreneurship, work ethic, and ingenuity while at the helm of the $CPRT.
As a result of that foundation $CPRT has massively outpaced the market.
Here are of his insightful business lessons🧵
1/ First off - "earn a PhD in common sense". Johnson didn't tread the path of a typical MBA executive. instead, he learned lessons from a dairy farm, his businessman father who provided for his family despite being unable to read, and in the military in Vietnam.
2/ "Take care of your pennies and the dollars will take care of themselves." Excerpt from his book Junk to Gold:
Last year, I spent a few weeks diving deeply into $COST. One thing became clear - this company is one of the most exceptionally run businesses in history.
Here are some interesting tidbits from my research👇🧵
1/ $COST's origin stories can be traced back all the way to Sol Price, one of the first entrepreneurs that capitalized on the discount retail business model w/ Fed-Mart in 1954. After being ousted from Fed-Mart, Price then started Price-Club, which later merged with $COST in 1993
2/ $COST is exclusive. As Gandalf once said, you shall not pass (that is if you don't have Costco membership). Memberships include Gold & Business at $60 or Exec (cash-back perk) at $120 annually. Millions of people are members & increasing amounts are opting for to be Execs
Every year I read as many books on finance, investing & business as possible.
As 2022 comes to a close, here is my updated top-10 list of must-reads 🧵👇
1/ Let's start with the works of my favourite author, Nassim Taleb. These key constituents of the Incerto series are an absolute must to develop your understanding of probabilistic thinking, randomness, and resiliency. They are as entertaining as they are informative
2/ My favourite read of 2022 was the Price of Time. Within, Edward Chancellor provides a succinct history of interest rates, associated policies, and their unintended implications. As we exit a period of essentially ZIRP, this was extremely useful for gaining some perspective
Nomad Investment Partnership returned 921% from 2001-2014, beating the MSCI World Index by 804% during that same time.
Their letters, written by Nick Sleep, are full of amazing pieces of wisdom.
I read 13 years of these masterpieces, here are my 13 favourite excerpts 🧵:
1/ Nomad was a global investment fund. Its investments, which Sleep and co researched in a manner akin to good "detective work", were evaluated using three core principles:
2/ The fund is arguably best known for its prolific investment in $COST. I enjoyed this excerpt discussing how $COST is a business that sees no need to fix what is already performing extraordinary well: