The hottest Corporate Finance Substack posts right now

And their main takeaways
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Top Finance Topics

Getting to the Fun Part

The Transcript • 139 implied HN points • 21 Oct 24
💰 Finance Market Trends Economic Policy Consumer behavior Investment Strategies Corporate Finance
  1. The economy is showing signs of resilience, with positive movements even though growth isn't super strong. People are feeling more optimistic about things improving.
  2. A drop in interest rates could lead to more business activity and investment. However, experts believe we might need more rate cuts for that to happen.
  3. Consumers are cautious but still spending. Overall, the job market remains steady, and many are waiting to see how upcoming events affect the economy.

The Corporate Life Cycle: Managing, Valuation and Investing Implications

Musings on Markets • 1438 implied HN points • 20 Aug 24
💼 Business Corporate Finance Valuation Investment Strategies Management Economic Trends
  1. Businesses, like people, go through life cycles. They start as new ideas, grow, and eventually decline if not managed properly.
  2. Companies age differently, impacting their strategies and financial health. Younger companies often focus on growth, while older ones need to defend their position or manage decline.
  3. The skills and qualities needed in leadership change with a company's age. A startup needs a visionary leader, while a declining company may require a pragmatic approach to manage its downsizing.

The Decade of Greed

In My Tribe • 470 implied HN points • 30 Dec 24
💼 Business Corporate Finance Investing Economic History Management Stock Market
  1. The 1980s was known as the 'decade of greed' where corporate competition and higher stock prices became the focus. Companies were often run for personal perks rather than to boost shareholder value.
  2. The leveraged buyout of RJR Nabisco showcased how investment strategies changed, with firms paying high prices for companies, anticipating future profits. This often led to restructuring that wasn't always kind to employees.
  3. Despite concerns about overpaying for stocks and creating economic instability, overall wealth has increased in America since the 1980s. What seemed excessive at the time might now look like a small correction in the grand scheme.

Problems at POET Technologies (POET)

The Bear Cave • 256 implied HN points • 05 Dec 24
💰 Finance Stock Market Investing Corporate Finance Market Trends Financial Analysis
  1. POET Technologies is working on an optical interposer technology, but it has very little revenue and a large debt, raising concerns about its long-term survival.
  2. The stock price of POET has risen dramatically this year, largely due to promotional campaigns rather than the company’s actual performance or growth.
  3. Several YouTube videos promoting POET were paid for by the company, which coincided with big jumps in stock price, suggesting that hype is driving interest more than solid fundamentals.

Is this the end of SaaS?🤔, Venture debt investments swell in Europe💰, Navigating Corporate Venture Capital💡

The VC Corner • 439 implied HN points • 07 Jul 24
💼 Business Venture Capital Investments Startups Corporate Finance
  1. There are concerns about the future of Software as a Service (SaaS) and whether it might be declining. It's important to think about how technology changes can impact business models.
  2. Venture debt investments are increasing in Europe, showing that companies are looking for alternative ways to raise money. This means more options are available for businesses instead of just traditional equity financing.
  3. Understanding corporate venture capital is crucial for startups. It helps to know how big companies invest in smaller businesses to drive innovation and growth.
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Philosophical economics: The golden calf of business and finance

Klement on Investing • 5 implied HN points • 23 Jan 25
💰 Finance Tax policy Economic Growth Fiscal policy Investment Strategies Corporate Finance
  1. Cutting taxes isn't always the best option for improving the economy. Sometimes, raising taxes can actually help fund important things like infrastructure and education.
  2. There's a lot of disagreement about whether low taxes lead to higher profits and growth. In reality, many developed countries show no clear link between tax rates and economic growth.
  3. It's important to consider how tax money is spent. If governments invest in useful projects, they can create more value than just cutting taxes.

Data Update 1 for 2024: The Data Speaks, but what is it saying?

Musings on Markets • 1099 implied HN points • 05 Jan 24
💰 Finance Investing Valuation Data Analysis Corporate Finance Market Trends
  1. All companies are included in data analysis to get a full picture, not just big ones. This helps avoid bias and shows a more accurate view of industries.
  2. The data covers many financial variables that help understand company decisions about investment, financing, and dividends. It also uses unique ways to calculate statistics for more accurate insights.
  3. The statistics are updated regularly to reflect the latest available information. Users should utilize the data wisely and be aware of any changes in accounting standards or currency issues.

Stock Buybacks Explained

Concepts of Finance 🧠 • 399 implied HN points • 04 Apr 24
💰 Finance Investing Market Trends Corporate Finance Economic Policy Stock Analysis
  1. Stock buybacks happen when a company uses its extra cash to buy back its own shares. This can make the remaining shares more valuable by increasing earnings per share.
  2. Buybacks can be good for investors, as they might boost stock prices without having to pay taxes on dividends right away. However, critics say companies should focus on growth and investment instead.
  3. There are downsides to buybacks too. Sometimes, management might use them to inflate their bonuses, or they might buy back shares at the wrong time, leading to poor long-term results.

Data Update 3 for 2024: A Rule-breaking Year for Interest Rates

Musings on Markets • 599 implied HN points • 25 Jan 24
💰 Finance Interest Rates Bond Markets Corporate Finance Economic Indicators
  1. Interest rates in 2023 showed little change, challenging the idea that the Fed is solely responsible for their movements. It's more about market dynamics and inflation.
  2. An inverted yield curve has traditionally been seen as a warning sign for recessions, but recent events in 2023 suggest it isn't always accurate. The economy remained stable despite the inversion.
  3. Looking forward, inflation will play a key role in determining interest rates in 2024. If inflation continues to drop, long-term rates might go down too.

Cigna Healthcare said it will buy back $11.3 billion of its own shares of stock. That announcement made the company's CEO and other investors much richer.

HEALTH CARE un-covered • 759 implied HN points • 18 Dec 23
💰 Finance Stock Market Corporate Finance Investment Regulation
  1. Cigna Healthcare plans to buy back $11.3 billion of its own stock, making its CEO and investors much wealthier. This move increased the stock price significantly in just one day.
  2. The amount Cigna is spending on stock buybacks is more than many states' entire Medicaid budgets for the year, raising concerns about the priorities of the healthcare system.
  3. Some members of Congress are upset about Cigna's decision, stating it shows how large insurance companies focus on profits instead of improving healthcare for their customers.

Ticker Take: a weekly newsletter on investing.

Jon’s Newsletter • 179 implied HN points • 26 May 24
💰 Finance Investing Stocks Market Trends Economic Analysis Corporate Finance
  1. Companies with high profit margins are doing really well. For example, Nvidia has a gross profit margin of 78%, which is impressive compared to others like Amazon and Apple.
  2. There are good opportunities in the bond market now. After a long time, stocks aren't the only option for investors looking for decent returns.
  3. Amazon is expected to overtake Walmart in sales next year. With Amazon's growth in cloud services, it's on track for $711 billion in revenue, compared to Walmart's $703 billion.

Investors are (still) worried that Big Tech is spending too much (again)

Alex's Personal Blog • 65 implied HN points • 04 Nov 24
💼 Business Investing Technology Economy Market Trends Corporate Finance
  1. Investors are concerned that big tech companies are spending too much on AI. They worry this spending could hurt returns in the future.
  2. Despite the worries, some tech companies, like Microsoft, are showing that AI investments can lead to real revenue growth. This suggests that not all spending is bad.
  3. These concerns are similar to past worries about other tech trends, like NFTs. Investors might be too quick to dismiss the potential benefits of tech advancements.

Data Update 5 for 2025: Profitability - The End Game for Business?

Musings on Markets • 479 implied HN points • 31 Jan 24
💼 Business Corporate Finance Profitability Investment strategy Market Analysis
  1. Businesses should focus on profitability as their main goal, not just growth. It's important to make money to cover expenses and create value for the future.
  2. Measuring profitability can be tricky because different measures tell different stories about a company's health. Companies need to be compared properly to understand their true performance.
  3. Most companies struggle to earn profits that exceed their costs of capital, showing it can be tough to succeed in the business world today. Even in a competitive market, many companies fall short.

Data Update 4 for 2024: Risk enters the Equation

Musings on Markets • 479 implied HN points • 28 Jan 24
💰 Finance Risk Analysis Investment Strategies Market Trends Corporate Finance Economic Factors
  1. Risk is not just a bad thing; it's a mix of danger and opportunity. To succeed, you sometimes need to embrace the right risks instead of avoiding them.
  2. Different types of risks exist, like economic and estimation uncertainties. It's important to identify and categorize them to make better investment decisions.
  3. Risks can vary significantly between companies and countries. Understanding these differences can help investors assess potential returns and make smarter choices.

The Price of Risk: With Equity Risk Premiums, Caveat Emptor!

Musings on Markets • 759 implied HN points • 05 Aug 23
💰 Finance Equity Investing Risk management Market Analysis Corporate Finance
  1. Equity risk premium (ERP) is the extra return investors expect from risky investments compared to risk-free ones. Understanding this helps investors make better decisions about stocks.
  2. Different methods to measure ERP can give very different results. It's important to understand why and how these estimates change over time.
  3. Using a consistent and logical approach to estimating ERP is crucial for making informed investment choices. Each method has its pros and cons, and what works best may depend on your investment goals.

In Search of Safe Havens: The Trust Deficit and Risk-free Investments!

Musings on Markets • 599 implied HN points • 15 Aug 23
💰 Finance Investments Market Trends Risk management Economic Indicators Corporate Finance
  1. Risk-free investments aren't always truly safe, especially during financial crises. Events like the 2008 crisis showed that even government bonds can carry risk.
  2. Inflation and real interest rates play a big role in determining risk-free rates, meaning they can change based on economic conditions. A higher expected inflation usually leads to higher risk-free rates.
  3. The trust in governments to honor their debt has declined over time, leading to uncertainty about using government bonds as risk-free investments. This loss of trust makes it essential to reassess what we consider safe investments.

Animal Spirits

Net Interest • 15 implied HN points • 13 Dec 24
💰 Finance Investment Regulation Market Trends Corporate Finance Economic Policy
  1. There's a feeling of optimism in the finance world right now, with a lot of excitement and positive energy among investors.
  2. Many financial leaders believe that changes in regulations could lead to better conditions for banks and companies, making it easier for them to operate.
  3. Executives are hopeful for the future, driven by recent strong performances in the stock market and a more patient regulatory environment.

Data Update 1 for 2023: Setting the Table

Musings on Markets • 779 implied HN points • 07 Jan 23
💰 Finance Data Analysis Investment Strategies Corporate Finance Market Trends Valuation Techniques
  1. Having too much data can be overwhelming and lead to distractions. It's important to focus on the most relevant information when making decisions.
  2. Data should not be seen as the only answer; personal judgment and reasoning are essential in analysis. Relying solely on data can hinder good decision-making.
  3. Data can be biased and subjective, even though many think of it as purely objective. It's crucial to be mindful of how data is presented and used.

Finance 101 for Crypto Degens, Part 1

DeFi Education • 1159 implied HN points • 17 May 22
💰 Finance Investing Corporate Finance Valuation Crypto Debt Management
  1. The time value of money means that money now is worth more than money in the future because you can invest it and earn a return. This idea explains why banks charge interest on loans.
  2. Understanding capital structure is important. It distinguishes between the types of capital a company uses, like debt (bonds, loans) and equity (ownership shares), and how these affect the company's value and risk.
  3. Discounted cash flow analysis helps evaluate the value of a business by looking at its expected future cash flows. This method shows how much future money is worth today, factoring in investment risks.

Control, Complexity and Politics: Deconstructing the Adani Affair!

Musings on Markets • 559 implied HN points • 05 Feb 23
💼 Business Corporate Finance Market Analysis Investment strategy Economic Trends Corporate Governance
  1. The Adani Group has rapidly grown in value, but much of this rise is supported by heavy debt. This heavy borrowing raises concerns about their financial stability.
  2. Investors are worried about potential financial manipulation and the use of shell companies by the Adani family. These practices could undermine trust and lead to serious consequences.
  3. Family businesses in India, like the Adani Group, can struggle with control issues that may harm overall growth. It's important for these companies to seek outside management talent to thrive.

5 Bankruptcy Concepts You Need to Know

DeFi Education • 699 implied HN points • 17 Nov 22
💰 Finance Bankruptcy Investing Corporate Finance Debt Management Financial Regulations
  1. Companies usually know they're going to file for bankruptcy ahead of time. This allows them to negotiate with lenders and creditors to plan a smoother bankruptcy process.
  2. Bankruptcies involve many different parties with competing interests. Each creditor wants to get the best deal, which can lead to complex negotiations.
  3. There are two main ways a bankruptcy can go: restructuring, where the company tries to stay in business, or liquidation, where the company sells off assets and shuts down.

Ticker Take: a weekly newsletter on investing.

Jon’s Newsletter • 59 implied HN points • 13 Apr 24
💰 Finance Investing Stock Market Economics Market Analysis Corporate Finance
  1. Market corrections can happen quickly, but historically, the S&P 500 often recovers most losses in just a few months. It's usually better for long-term investors to hold on rather than sell during downturns.
  2. Apple is working to integrate AI into its products, aiming to boost sales, especially in its Mac line. However, the overall impact might not be enough to offset current weaknesses in iPhone sales.
  3. Several tech companies are expected to see significant sales growth in the coming years. Nvidia, Micron, and Shopify are leading the way, showing that tech is still a strong sector for investment.

Data Update 7 for 2023: Dividends, Buybacks and Cash flows

Musings on Markets • 359 implied HN points • 08 Mar 23
💰 Finance Corporate Finance Investment Strategies Cash Management Dividend Policy Market Trends
  1. Buybacks are becoming more common than dividends for companies to return cash to shareholders. Companies find buybacks more flexible and less of a commitment than regular dividend payments.
  2. Dividends should be one of the last steps in a company's financial decisions. If a company has no good investments, it should consider paying dividends or buybacks as a way to return cash to owners.
  3. There are tax differences between dividends and buybacks that may influence shareholder preferences. Although dividends used to be taxed more heavily, the gap has narrowed in recent years.

Trump's Banks

Net Interest • 13 implied HN points • 08 Nov 24
💰 Finance Banking Investing Economics Financial Markets Corporate Finance
  1. Trump has had a complex and fluctuating relationship with Wall Street, relying on banks for significant funding throughout his career. His ventures often led to defaults and bankruptcies, causing lenders to hesitate to work with him later.
  2. Deutsche Bank played a crucial role in Trump's financing, lending him over $2 billion despite his previous financial troubles. This close relationship also implicated the bank in legal issues related to Trump's financial practices.
  3. Trump has shifted his main banking relationships over time, now primarily working with a smaller bank called Axos Financial. Following his election win, his creditworthiness improved, benefiting both him and the bank.

IPOs are underpriced

Something to Consider • 19 implied HN points • 25 Jun 24
💰 Finance Stock Market Investments Economics Corporate Finance Market Trends
  1. IPOs, or initial public offerings, often sell for less than their true value. This means companies miss out on money they could have earned.
  2. There are better ways to sell shares, like auctions, that could help get a fairer price. Selling all shares at once is not ideal.
  3. Releasing shares gradually could lead to better pricing and less underpricing. This way, companies wouldn’t leave money on the table when they go public.

Data Update 6 for 2023: The Upside and Downside of Debt!

Musings on Markets • 359 implied HN points • 28 Feb 23
💰 Finance Debt Management Corporate Finance Investment strategy Risk Assessment Economic Trends
  1. Debt can be a useful tool for businesses to fund growth, but it also comes with risks. Finding the right balance of debt and equity is important for long-term success.
  2. There are good reasons to borrow, like taking advantage of tax benefits, and bad reasons, such as chasing higher returns that aren't real. It's crucial to understand the real costs.
  3. Companies often stick to past borrowing habits or follow what others in their industry do. This inertia can lead to too much or too little debt, which isn't always the best for their financial health.

Dissent and Debate: The Pushback on my Tesla Valuation

Musings on Markets • 379 implied HN points • 03 Feb 23
💰 Finance Investing Valuation Market Analysis Economic Forecasting Corporate Finance
  1. There are strong opinions on both sides regarding Tesla's future value. Some believe it's undervalued, while others think it's overvalued, showing how divided people are about the company's potential.
  2. Revenue growth estimates are tricky; as companies get bigger, it's harder to keep high growth rates. The idea is that Tesla will reach a certain revenue and then grow slowly, like many large companies.
  3. Cost of capital is an important factor in valuing a company. For Tesla, using a realistic cost of capital helps in understanding its financial potential, even if different viewpoints exist on what that number should be.

How to Analyze an Income Statement

Concepts of Finance 🧠 • 219 implied HN points • 06 Jul 23
💰 Finance Accounting Investing Corporate Finance Financial Analysis
  1. An income statement shows how well a company is doing by detailing its revenue, expenses, and net income over a period. It's important because it helps you understand if a company is making a profit or losing money.
  2. Gross profit margin is a key metric to analyze. It reveals whether the company is profitable on the products it sells, and a stable or rising margin is a good sign.
  3. When reading an income statement, look for trends over time, check revenue directions, and ensure expense categories make sense. This can highlight the company's overall health and performance.

What is EBITDA?

Concepts of Finance 🧠 • 299 implied HN points • 16 Mar 23
💰 Finance Corporate Finance Investment Analysis Financial Metrics Cash Flow
  1. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortisation. It's a way to see how much cash a company makes from its regular activities, without debt and accounting effects.
  2. To calculate EBITDA, you add net income, taxes, interest, depreciation, and amortisation. This helps give a clearer picture of a company's financial health.
  3. Companies like EBITDA because it shows how well they're doing without the impact of financing and other expenses. It's a key metric when looking at profits or selling the business.

Crash Course in Corporate Financial Restructuring

DeFi Education • 519 implied HN points • 08 Jul 22
💰 Finance Corporate Finance Restructuring Investment Banking Consulting
  1. Corporate financial restructuring helps businesses recover from financial difficulties. It's like giving a struggling company a fresh start.
  2. The topic is complex and many experts have written books about it. This means there’s a lot to learn that can't be covered in just one article.
  3. Understanding the key points of restructuring can help people make better decisions in business. It's important to grasp the basics if you're involved in finance.

Why investors love Apple's stock.

Jon’s Newsletter • 39 implied HN points • 28 Nov 23
💰 Finance Investing Dividends Stock Buybacks Corporate Finance Market Analysis
  1. Apple makes a lot of money from selling devices like iPhones and services, giving them a huge cash flow.
  2. Investors love that Apple shares its profits through dividends and stock buybacks, which puts money back in their pockets.
  3. Even with big expenses, Apple still has plenty of cash left over, and experts believe this will keep growing in the future.

Clouded Judgement 10.11.24 - Budget Flush

Clouded Judgement • 5 implied HN points • 11 Oct 24
💰 Finance Market Trends Investment Strategies Economic Analysis Corporate Finance Startup funding
  1. A budget flush happens when companies spend leftover budget at the end of the year to avoid losing any funds. This can boost sales for software companies looking to close deals quickly.
  2. Last year's budget flush was stronger than usual, with companies spending more due to concerns over budget cuts. This year, a similar trend could happen, driven by a more positive economic outlook.
  3. The performance of software stocks is rising, signaling optimism in the market. Investors are hopeful that major companies will report good earnings, which could lead to more investments in the software sector.

Microsoft vs the IRS

philsiarri • 44 implied HN points • 12 Oct 23
💼 Business Taxes Tech Companies Corporate Finance
  1. Microsoft is facing a $29 billion IRS audit for unpaid taxes from 2004 to 2013.
  2. The dispute centers around how Microsoft allocated profits across international jurisdictions.
  3. Big tech companies like Microsoft face scrutiny for shifting revenue to reduce tax obligations.

It’s cheaper being green

Klement on Investing • 1 implied HN point • 02 Dec 24
💰 Finance Investing Capital Markets Sustainability Cost Analysis Corporate Finance
  1. Going绿色可能会更便宜，很多公司发现绿色项目的资本成本比传统项目低。
  2. 公司更愿意投资绿色项目，因为他们认为这些项目的回报率更高。
  3. 这个趋势在过去几年中增强，特别是在环境、社会和公司治理（即环境、社会和公司治理）投资变得流行之后。

Data Update 5 for 2022: The Bottom Line!

Musings on Markets • 119 implied HN points • 27 Feb 22
💼 Business Profitability Corporate Finance Market Trends Economic Impact Financial Analysis
  1. Profitability is key for business success, but it's important to dig deeper than just revenue growth. Companies need to focus on actual earnings and how well they can sustain profits in the long run.
  2. Different metrics help measure a company's profitability, including gross profit and net income. Understanding these can provide insights on how companies are doing across various sectors.
  3. Growth isn't always good; it requires careful investment that might affect immediate profits. Companies need to balance reinvestment with delivering returns to their investors.

Data Update 4 for 2022: Risk = Danger + Opportunity!

Musings on Markets • 19 implied HN points • 09 Feb 22
💰 Finance Investment Risk management Market Analysis Corporate Finance Economic Theory
  1. Risk is both danger and opportunity. Taking big chances can lead to rewards, but it also comes with the possibility of losing money.
  2. It's important to balance between risk and reward. If you don't expect a good return from a risky investment, you might be wasting your time.
  3. Real risk comes from not knowing the future, not just bad outcomes. It's about the uncertainty of what may happen next.

Data Update 1 for 2022: It is Moneyball Time!

Musings on Markets • 19 implied HN points • 08 Jan 22
💰 Finance Data Analysis Investment Strategies Market Trends Company Valuation Economic Indicators Corporate Finance
  1. Having a lot of data isn't always helpful. Sometimes, too much information can make it harder to make good decisions.
  2. Just because everyone thinks something is right doesn't mean it is. Crowds can be wrong, so it's important to think critically about popular opinions.
  3. Using data effectively requires understanding and skill. Knowing how to read the data properly can help you make better investment choices.

Triggered Disclosures: Escaping the Disclosure Dilemma

Musings on Markets • 19 implied HN points • 19 Oct 21
💼 Business Corporate Finance Accounting Regulation Investment Market Analysis
  1. Corporate disclosures have become very long and confusing, making it hard for investors to find important information. This complexity can confuse rather than inform potential investors.
  2. Instead of having a one-size-fits-all approach, disclosure rules should be tailored to fit the unique needs of different companies. This would help make disclosures clearer and more useful.
  3. The definition of materiality needs to change from focusing on past earnings to considering how information affects future company value. This would encourage companies to provide information that truly matters to investors.

Sounding good or Doing good? A Skeptical Look at ESG

Musings on Markets • 19 implied HN points • 21 Sep 20
💼 Business Corporate Finance Investment Strategies Social Responsibility Market Trends
  1. ESG, which stands for Environmental, Social, and Governance, is a popular business approach, but its actual benefits are unclear. Some argue it makes companies better, while others believe companies that do well just appear more socially responsible.
  2. Measuring social goodness is complicated because different services often give very different scores to the same company. This inconsistency makes it hard to agree on what makes a company 'good' or 'bad.'
  3. Investors should be cautious with ESG investments. Sometimes, focusing on social responsibility might not lead to higher profits. It's important to look at the bigger picture and not just rely on ESG ratings.