Nicolas Bustamante

Nicolas Bustamante's Substack focuses on value investing, long-term company building strategies, and personal development through leadership and minimalism. It discusses strategic investment practices like evaluating competitive moats, reinvestment strategies, share buybacks, and the importance of intrinsic value, alongside insights on leadership, digital and physical minimalism, and leveraging technology and AI.

Value Investing Company Building Competitive Moats Leadership and Management Trust and Reputation Technology and AI Reading and Knowledge Margin of Safety Inflation Survival Strategies Share Buybacks Corporate Culture Leverage and Financial Stability Minimalism Intrinsic Value Calculation

The hottest Substack posts of Nicolas Bustamante

And their main takeaways

Incentive and Skin in the Game

85 implied HN points • 11 Aug 21
  1. Incentives and skin in the game are crucial in aligning interests and ensuring accountability.
  2. A proper incentive system involves sharing both the upside and downside consequences.
  3. Putting money at stake creates alignment and encourages prudent, long-term behavior.

Surviving Capitalism with Competitive Moats

85 implied HN points • 29 Jul 21
  1. Surviving in capitalism requires competitive moats to sustain an edge over time.
  2. The best businesses can earn high returns on investment and maintain a long-term competitive advantage.
  3. Measuring a company's ability to raise prices can indicate the strength of its competitive moats.

Putting your Reputation at Risk

75 implied HN points • 19 Aug 21
  1. Putting your reputation at risk by using your personal name can be powerful and effective in building trust and accountability.
  2. A good reputation is a strong competitive advantage that can't easily be copied.
  3. Committing time and putting one's reputation at stake is a powerful way to show long-term commitment and trustworthiness.

My List of Books Worth Reading

75 implied HN points • 30 Jul 21
  1. Knowledge is power and reading is key to wisdom and enlightenment.
  2. A diverse reading list including books on investing, biographies, economics, philosophy, personal development, business, history, and novels.
  3. Reading about successful companies and business strategies can offer valuable insights for entrepreneurs.
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Leadership Lessons Learned in Combat

75 implied HN points • 01 Jun 21
  1. Leadership is about extreme ownership and taking responsibility for everything.
  2. Maintaining high standards and not tolerating substandard performance is crucial for a team's success.
  3. Effective leadership involves simplicity, prioritization, and empowering teammates to make decisions.

How to Survive Inflation

66 implied HN points • 15 Jul 21
  1. Governments printing money leads to inflation
  2. To survive inflation, have assets that preserve and produce value over time
  3. Combining earning power and cost compression is key to thriving in an inflationary period

How to Reinvest Earnings

66 implied HN points • 30 Jun 21
  1. Reinvesting earnings in the business can create more value than investing in other companies.
  2. Companies should aim to earn a higher rate of return on reinvested earnings than shareholders could elsewhere.
  3. Understanding the return on invested capital and reinvestment capacity are crucial for smart earnings reinvestment decisions.

Margin of Safety

66 implied HN points • 15 Jun 21
  1. Having a margin of safety in investing means buying assets at a discount from their intrinsic value.
  2. A margin of safety creates robustness to unpredictable adverse events in daily life.
  3. Implementing a margin of safety may go against efficiency but is essential for stability and success in the long run.

How to Buy Back Shares

56 implied HN points • 07 Jul 21
  1. Buying back shares can increase shareholders' ownership in a company.
  2. When repurchasing shares, it's crucial to buy below the company's intrinsic value for good returns.
  3. Buyback programs should be done thoughtfully to benefit shareholders, avoiding buying high and selling low scenarios.

Marine Corps Warfighting: the Best Book bout Culture

56 implied HN points • 22 Jun 21
  1. Marine Corps Warfighting is a great book about culture and business principles.
  2. The book emphasizes dealing with uncertainty, complexity, and embracing decentralization.
  3. It highlights the importance of trust, honesty, and boldness in leadership and decision-making.

The Dichotomy of Leadership

56 implied HN points • 17 Jun 21
  1. Leadership is about finding balance between opposing forces.
  2. Leaders should be close to the team but not too close.
  3. It's important for leaders to control emotions, enforce standards, and be humble but not passive.

How much Leverage?

47 implied HN points • 04 Aug 21
  1. Leverage can magnify gains but also losses, and can be addictive.
  2. Maintaining a conservative balance sheet is crucial for long-term success.
  3. Having liquidity and limited debt provides optionality and enables bold moves during market crashes.

How to Calculate Intrinsic Value

47 implied HN points • 22 Jul 21
  1. Intrinsic value is determined by cash flows, discount rate, and margin of safety.
  2. Predicting cash flows requires a deep understanding of the business and market.
  3. Calculating intrinsic value involves estimating cash flows and discount rates with a margin of safety.

Digital Minimalism

47 implied HN points • 11 Jul 21
  1. Be mindful of digital addiction and practice digital minimalism.
  2. Quality of information consumed impacts the quality of thinking.
  3. Master technology to be the boss, not the slave.

Physical Minimalism

47 implied HN points • 10 Jul 21
  1. Owning less stuff can lead to less stress, more time, and more happiness
  2. Challenging social pressures to buy more and focusing on intentional living is important as a minimalist
  3. Learning to desire less and embrace simplicity can bring true happiness