Highlights below ⬇
2/10 “We’ve had 40+ years where all the money went into broadband, or internet, or #Netflix or the cloud and no money went into basic productive capacity…”
–Robert Friedland, CEO, Ivanhoe group of companies
Feb 28 • 19 tweets • 9 min read
1/19 @ttmygh of the wonderful Things That Make You Go HMMMM newsletter just wrote a scathing piece on the emerging #pension fund disaster in lagged marks from private #equity.
2/19 As he explains: #PrivateEquity is taking down Pension Funds as they struggle to keep the game of hot-potato going. “Hot potato” being the business practice of selling slices of companies back and forth to one another at ever higher #valuations.
Interest in #EVs is outpacing infrastructure development
loom.ly/EhmwHWg2/4 In our piece, The Role of Critical Minerals in Clean Energy Transitions we stated, " The electrification of transportation is going to require a massive amount of #mining. The stocks are incredibly cheap."
"The problem for $WE is the margin between what they pay and what they receive from their #customers has not been enough to cover the very large administrative/marketing/advertising #expenses."
Dec 30, 2022 • 6 tweets • 3 min read
1/6 It's not that complicated. When a company issues #stock to employees or the public, it increases shares outstanding and dilutes #earnings per share.
2/6 Give the #stock to the employee, and the cash doesn’t show up on the balance sheet. Robbing Peter to pay Paul. In #broaddaylight
Southwest’s meltdown was born in America’s cheapskate corporate culture
2/14 "The short answer is their underinvestment in preparation and planning. For decades, Big Business has been squandering its resources…instead of spending on workers and infrastructure. There’s not enough give in the system, so when crisis comes, it doesn’t bend, but breaks."
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.
Oct 28, 2022 • 10 tweets • 3 min read
In our Friday edition of the #KCRDailyThread: 1/ $AMZN CEO Andrew Jassey is in the hot seat 🔥
2/ Exactly 1 year ago today, we published this rant: Andrew Jassy Amazon's Next Bob Nardelli?
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
Jul 15, 2022 • 12 tweets • 5 min read
1/ @DoombergT put out one of the best summaries of the tremendous success created by massive chemical facilities like BASF’s in Germany that most of us never have to see.
@DoombergT 2/ Barring some very good fortune we are all going to be learning about the business of chemical plants.
1/ Let's look at a 2021 Summary... Market Cap to GDP hits 234% by November – a full 59% higher than the dot com bubble peak. 2/ By December, 10 year stock market returns hit 200+ year peaks with the Shiller PE hitting 39x.
Jul 13, 2022 • 5 tweets • 3 min read
1/ Historically, investors in large cap core index funds had the bulk of their money invested in stocks with reasonable valuations with negligible exposure to stocks valued over 10x price to sales.
Should evoke caution for those using index fund investment strategies with large cap core exposure to make sure they are consistent with your investment objectives, risks, and other goals.
Jul 5, 2022 • 10 tweets • 3 min read
1/ An update of a thread posted last month... 😉
2/ I’m staring at a list of stocks in the S&P 500 Index. The results are sorted by their weighting in the index from largest to smallest. At a 6.97% weight, $AAPL is at the top.
Jun 28, 2022 • 17 tweets • 7 min read
1/ By June 8th of this year, the S&P500’’s Energy stocks were up 70% in a -13% market. From June 8 to June 24th the sector fell -22%. That’s 11 trading days.
2/ Not really surprising considering the relative performance.