It’s easy to understand why the market assigns a premium to software-as-a–service (SaaS) business models. Typically, such companies have a broad customer base with no single customer accounting for more than a small fraction of revenues. They’re usually high-growth companies where the more customers brought on board, the higher the margins. And most importantly, they […]
There’s nothing worse than being famous and having your tumultuous love life on display for a bunch of shallow muppets to critique. So, have you heard the news? Yesterday, Elon Musk semi-separated with Grimes – that loco-looking tattooed chick that totally wasn’t his type. The key takeaway is that he can now spend an extra […]
Nanalyze has been writing about big data since, well, it became big. While the term has been around since the 1990s, it really hit the big time about 10 years ago. It refers to extremely large and unwieldy datasets, which can be analyzed to reveal patterns or trends, often related to human behavior. Big data […]
Even seasoned investors confuse stock price movements with the quality of the underlying business. We may say to avoid a stock because we don’t believe the business model is economically viable. When the stock doubles the next day because some chump on Reddit decided to manipulate it, people are quick to say “see, you were […]
Last year, we opted to exit our position in Appen (APX.AX), an Australian company whose core business involves annotating and labeling training data for AI models. It turned out to be a good decision: Appen has lost nearly -70% in the last year, compared to +38% for the NASDAQ during that time. Our main argument […]
One of the big challenges over the last year or so – aside from deciding when it was safe to get a haircut again – is teasing out the ephemeral from the existential when it comes to investing in the stock market. We’ve referred to this as the remote connectivity investment thesis. Basically, investors are […]
No matter how hard we try to follow best practices – diversify, don’t try to time the markets, use dollar cost averaging – we always find ourselves reverting back to bad habits. Of the 32 positions we’re holding right now, two of them we engaged in a bit of market timing on – Alteryx (AYX) […]
Having been investors in Google since their IPO, we became concerned when the company started dipping its toes in politics. When they started hiring “adventure cartoonists” to explain technical concepts, we sensed things were going downhill. Today, the company’s CEO spends his time fighting all the fires being created by the incompetent imbeciles he now […]
Data isn’t just increasing in quantity; it’s also growing in complexity. Data lakes are now replacing data warehouses. All your online activities now generate unstructured “data exhaust” that’s being mined by sophisticated machine learning algorithms for insights. However, due to increasing data breaches and privacy concerns, regulators have adopted stringent rules and regulations on how […]
The difference between confidence and arrogance is whether or not you can walk the walk. Confidence is a highly desirable quality for managers because it’s married to another prized quality – decisiveness. And as a leader, you won’t be very persuasive unless you make decisions with conviction. In the world of investing, we say people […]