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Nov 23 • 6 tweets • 3 min read
1/ In this Wednesday edition of the #KCRDailyThread: Investors have shown some newfound interest in large-cap growth stocks. Understandable. They’ve sold off.

#GrowthStocks #StockMarketInvesting #Investing
2/ But how much? The chart below divides the market cap of the 30 largest growth stocks by GDP.

#KCRDailyThread
3/ These companies have indeed fallen….to where they were at the peak of the dot com bubble. That is sheer madness.

#KCRDailyThread
4/ Does it make sense to have 30 stocks in the United States valued at half the country’s GDP?

#KCRDailyThread
5/ It has never made sense before. Maybe it is different this time, but we doubt it.

#KCRDailyThread
6/ Get the full article: Large Cap Growth Index Funds & the Path to Poverty ⬇
kailashconcepts.com/large-cap-grow…

#KCRDailyThread

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More from @KailashConcepts

Kailash Concepts Profile picture
Nov 25
1/7 Must read article by @kayewiggins @FinancialTimes on how the #volatilitylaundering complex has built & sold a pile of CDOs (they changed the "D" to an "F")

on.ft.com/3GP1wkN Image
2/7 Since there is no disclosure or reporting it’s tough to tell where the bodies are.

The article explains how "CFOs introduce another layer of leverage" in a PE pyramid built on debt.

Which might be suboptimal....
3/7 As @hkuppy's killer thread explains how the debt itself in these structures may be comically mismarked

Read 7 tweets
Kailash Concepts Profile picture
Oct 31
1/ The chart below shows the cumulative taxes expensed by the constituents of the S&P’s energy sector vs. Apple.

Legendary for their tax evasion skills, KCR has not heard our politicians propose a windfall profits tax on Apple. Cumulative Taxes Expensed SP500 Energy and AAPL
2/ Buying a new iPhone is nice. Keeping your home warm and eating food requires energy. That is non-negotiable. The world is structurally short of hydrocarbons due to the explosion of ESG investing and empirically failed government policies.
3/ While the intentions are good, the consequences are dire. The world needs more energy. It does not need more Teslas and other environmental solutions that are rapidly failing the tests of basic physics.
Read 5 tweets
Kailash Concepts Profile picture
Oct 28
In our Friday edition of the #KCRDailyThread: 1/ $AMZN CEO Andrew Jassey is in the hot seat 🔥

Image
2/ Exactly 1 year ago today, we published this rant: Andrew Jassy Amazon's Next Bob Nardelli?

kailashconcepts.com/andrew-jassy-a…
3/ When Jeff Bezos, Chairman and Chief Executive Officer of Amazon stepped down and handed the reins to Andrew Jassy, former head of Amazon Web Services we thought the timing phenomenal. For Mr. Bezos.
Read 10 tweets
Kailash Concepts Profile picture
Oct 20
1/ Terrific chain. Simple “positive” & “negative” examples of how to clean up ESG.

One positive example follows below. 👇
2/ Engineers have nearly doubled fuel economy despite exploding vehicle size, weight and horsepower due to consumer preference for bigger, safer faster cars

This is proof of superb R&D by automotive OEMs
3/ Battery Electric Vehicles (BEVs) have received massive subsidies based on highly politicized decisions by the CARB board.

Unfortunately, as the environmentalist group explains in this simple image, they require epic amounts of LITHIUM
Read 10 tweets
Kailash Concepts Profile picture
Oct 19
1/ In this Wednesday edition of the #KCRDailyThread: Unpopular Empirically Informed Views.

#InvestmentStrategies #InvestingStrategy #StockMarketAnalysis
2/ #KCRDailyThread
3/ #KCRDailyThread
Read 12 tweets
Kailash Concepts Profile picture
Oct 19
1/The new math of "BEATS" by broken growth stocks

$NFLX surprised to the upside on subscribers sending the stock's market cap up ~$16bn after hours.

With revs up just 6% YoY, Op Profit -13% and EPS -4%, the ebullience is all in the subscriber story.... Netflix_The New Math of Broken Growth Stocks Blowout Quarter
2/...and then the company said they were going end guidance for paid membership, choosing instead to focus on sales, operating income, operating margin, net income and EPS
3/ That sounds a lot like a mature company where traditional valuation metrics start to become the yard-stick by which they are measured.

If the wheeler-dealer days of subscriber growth beats, agnostic of fundamentals are over, then one has to contemplate FREE CASH FLOW
Read 5 tweets

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