Old School Value Nugget Fest (May 23rd Edition)

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Markets & Investing

  • Patsy in the Game (Fundoo Professor)
    “When we choose to ignore overwhelming evidence showing that we were wrong but continue to stay invested in situations which just don’t make sense anymore, how different are we from that naïve school kid who continued to believe that the coin was fair even after it had landed heads 99 times in a row?”
  • The advantages individual investors have over institutions (Humble Dollar)
    “What kinds of stocks should you be looking for? The beauty of being an individual investor is that there are no rules. It depends on your interests and areas of expertise.”


Company & Strategy Analysis

  • The Empty Promise of Data Moats (Andreessen Horowitz)
    “Data is fundamental to many software companies’ product strategies, and there are ways it can contribute to defensibility — but don’t rely on it as a magic wand. Most of the narrative around data network effects is really around data scale effects, and as we’ve outlined in this post, those sometimes have the opposite effect if not planned correctly.”
  • China, Leverage, and Values (Stratechery)
    It’s worth thinking about the China trade war, why it matters, who has leverage, how long it’ll last, and how it may play out for countries and companies alike.
    “The other big question is if the Trump administration will levy tariffs on iPhones for U.S. consumers: to date Apple has been largely spared, but the U.S. is running out of goods to slap tariffs on.”

Quote of the Week

H/t Fat Tailed and Happy

Video of the Week

Bloomberg interview with Kyle Bass (Hayman Capital Management founder and CIO) [9 minutes]
More of an exploration of each country’s interests and leverage, with some investment implications.

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