Bigger is usually better. The term “economies of scale” is often used to describe how larger firms can operate more efficiently than smaller ones. The larger a firm becomes, the more difficult it is to compete with them. There are several key measures we use to identify which companies are the biggest within any given […]
Using a great product makes you want to invest in the product. When cannabis legalization started going mainstream outside of California, every stoner marijuana aficionado out there suddenly decided that weed stocks were the way forward. Popular brands enjoy the same benefit, and sometimes they’ll look to their customer base for funding where the most […]
As the world becomes smaller and smaller, domestic bias isn’t just about investing in companies found in your native countries. It’s also about investing in the world’s most powerful brands. For semiconductor brands, few stand out more than Intel (INTC), a company that may have been dethroned by NVIDIA (NVDA), but still packs a punch […]
Companies can grow organically and inorganically. The former involves internally developing technology, intellectual property, products, etc., and building the business with in-house talent. Conversely, inorganic growth often refers to acquiring or merging with another company, which can be a high-risk, high-reward move. In this context, the spurt in special purpose acquisition companies (SPACs) until recently […]
Elon Musk should stick to building rockets and electric cars. A lot of people have been saying that lately, and they’re right. After reducing the cost of transporting goods to space by 90%, and building the most popular electric car on this planet without spending a dime on advertising, he probably should stick to his […]
Investors usually compare two stocks because they’re holding one or thinking about it. Usually, the stocks in question have some obvious relationship. You wouldn’t try to compare Protolabs to Procter & Gamble (P&G) because the two firms have nothing in common. However, you might compare P&G to IBM because they’re both dividend-growth stocks. You might […]
Bear markets should be celebrated as opportunities to purchase quality growth assets at a significant discount. It’s also a time when companies with subpar business models come under scrutiny. Selling promises of future growth becomes very difficult which is why special purpose acquisition companies (SPACs) have come crumbling down with more than 40 of the […]
Successful technologists understand that the ability to learn new domains is as equally important as having subject matter expertise in a single domain. Breadth is as important as depth. Competent software engineers can often move around laterally within an organization because of their ability to learn. They can also move upwards while still maintaining technical […]
We could blame the current market downturn, especially in tech stocks, on a lot of things. SPACs. Russia’s invasion of Ukraine. The Rona and supply chain issues. Inflation. But we prefer to make Lenin-look-alike Jim Cramer our scapegoat. The list of controversies surrounding this former hedge fund manager makes up the bulk of his Wikipedia […]
Gene editing is a great example of an extremely difficult concept that’s easy to understand. The recipe of life is DNA. Changing the recipe of life allows you to fix defects or create new and exciting things. Understanding the technical details of how that happens isn’t necessary to understand the value proposition, and screening the […]