The hottest Corporate Finance Substack posts right now

And their main takeaways
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Top Finance Topics

Crash Course in Corporate Financial Restructuring

DeFi Education • 519 implied HN points • 08 Jul 22
💰 Finance Corporate Finance
  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.

Buybacks shouldn’t matter, but they do

Klement on Investing • 5 implied HN points • 06 Jan 26
💰 Finance Corporate Finance
  1. The textbook capital-allocation theory says buybacks and dividends are equivalent in a frictionless market, so buybacks should not change share prices.
  2. In practice buybacks do move prices — the impact depends on stock volatility and the share of daily trading bought back, so small daily buybacks repeated over time can produce large cumulative price gains.
  3. Buybacks force investor rebalancing (investors sell into the buyback then need to buy to restore allocations), which pushes the market higher, making buybacks an effective tool for lifting a weak share price.

Learning from the mafia

Klement on Investing • 3 implied HN points • 23 Jan 26
💼 Business Corporate Finance
  1. Mafia-connected firms and their accountants push effective tax rates down — clean firms in heavily infiltrated regions pay about 1% less tax on average and are 3.6% more likely to restate their tax filings.
  2. This spreads because firms share the same accountants, accounting firms reuse tricks learned from mafia clients, and honest firms feel pressured to copy aggressive tax strategies to stay competitive.
  3. The net effect is a strong incentive for many companies to cut their tax bills aggressively, which ends up costing the state a lot of money.

How to improve an earnings call

Klement on Investing • 1 implied HN point • 12 Feb 26
💼 Business Corporate Finance
  1. Earnings calls that get more people to actively listen lead to higher trading volume and a better immediate share-price reaction.
  2. People tune in more when calls aren’t scheduled against other events, include slide decks and clear forward-looking numbers, and when presenters speak at a measured pace, vary loudness a bit, and avoid frequent speaker changes.
  3. Don’t try to dazzle or overload listeners; keep the content moderately complex, minimize disruptions, and help investors get into a flow state.

The costs and benefits of TCFD disclosure

Klement on Investing • 1 implied HN point • 09 Feb 26
💰 Finance Corporate Finance
  1. Companies that voluntarily follow TCFD are usually those more exposed to climate risk and with more resources like bigger workforces, larger boards, or dedicated sustainability committees.
  2. For large firms, voluntary TCFD disclosure is associated with higher profitability and valuations, but for smaller firms the compliance costs are relatively high and tend to reduce profitability.
  3. Because these disclosure costs disproportionately burden smaller companies, regulators are moving to soften or ease reporting requirements to reduce that strain.
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How does a 63% premium sound?

Alex's Personal Blog • 65 implied HN points • 24 Feb 25
💰 Finance Corporate Finance
  1. Prosus is buying Just Eat for $4.3 billion, which is a huge 63% more than what it was worth before the deal. This shows a big jump in value but raises some questions among investors.
  2. Just Eat's growth has slowed down recently, with a slight drop in global revenue. This makes some people think the deal might not be a good bargain for Prosus.
  3. The Christian Democratic Union in Germany has won a recent election and plans to lower taxes and cut regulations. They're also focusing on energy policies and digital innovation, which could reshape Germany's economy.

Why investors love Apple's stock.

Jon’s Newsletter • 39 implied HN points • 28 Nov 23
💰 Finance Corporate Finance
  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.

Which profits matter most?

Klement on Investing • 2 implied HN points • 13 Jan 26
💰 Finance Corporate Finance
  1. Operating profit (EBIT) is the main profit measure that moves share prices. Institutional investors also check net income to capture interest and other real costs.
  2. Gross profit or EBITDA is often presented as ‘profits before the bad stuff’ and can be misleading. Be wary of adjusted profit numbers that deviate from accounting standards.
  3. Which metric matters most depends on the market. In the US investors focus on profitability, while in the UK and Europe they pay more attention to past and future earnings growth because growth is scarcer there.

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

Alex's Personal Blog • 65 implied HN points • 04 Nov 24
💼 Business 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 2022: The Bottom Line!

Musings on Markets • 119 implied HN points • 27 Feb 22
💼 Business Corporate Finance
  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.

Illumina Revenue Down

ASeq Newsletter • 7 implied HN points • 31 Jul 25
💰 Finance Corporate Finance
  1. Illumina's revenue is down by 3% in Q2, which follows a similar trend from Q1. This shows they are struggling to sell their instruments.
  2. Despite the drop in instrument sales, they have seen a slight increase in revenue from consumables, meaning customers are still buying other products.
  3. The decline in instrument sales might be due to uncertainty in the market, causing customers to hold off on new purchases.

Corporate investment after rate cuts

Klement on Investing • 1 implied HN point • 09 Dec 25
💰 Finance Corporate Finance
  1. A one percentage-point cut in policy rates typically raises corporate investment by about 7% over the following two years, though the average masks big differences across firms.
  2. Firms that build long-lived assets (real estate, utilities, healthcare) react much more to rate cuts than companies with short-lived assets like tech and media.
  3. Many companies still won’t invest after rate cuts because of weak opportunities, labour shortages, or a need for cash, so monetary policy works slowly and depends on business confidence — which governments and media can help amplify or undermine.

Animal Spirits

Net Interest • 15 implied HN points • 13 Dec 24
💰 Finance Corporate Finance
  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.

Microsoft vs the IRS

philsiarri • 44 implied HN points • 12 Oct 23
💼 Business 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.

Trump's Banks

Net Interest • 13 implied HN points • 08 Nov 24
💰 Finance 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.

Philosophical economics: The golden calf of business and finance

Klement on Investing • 5 implied HN points • 23 Jan 25
💰 Finance 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 4 for 2022: Risk = Danger + Opportunity!

Musings on Markets • 19 implied HN points • 09 Feb 22
💰 Finance Corporate Finance
  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 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
  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.

Clouded Judgement 10.11.24 - Budget Flush

Clouded Judgement • 5 implied HN points • 11 Oct 24
💰 Finance Corporate Finance
  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.

Sounding good or Doing good? A Skeptical Look at ESG

Musings on Markets • 19 implied HN points • 21 Sep 20
💼 Business Corporate Finance
  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.

January 2019 Data Update 5: Hurdle Rates and Costs of Financing

Musings on Markets • 19 implied HN points • 24 Jan 19
💰 Finance Corporate Finance
  1. Hurdle rates are important because they help companies decide whether to invest in a project. They reflect the risks involved and the expected returns for different funding sources.
  2. Businesses face various types of risks like business, financial leverage, country, and currency risks. Understanding these risks helps in accurately calculating the cost of capital.
  3. It's crucial to maintain consistency in currency analysis, adjusting for inflation and risk, as it affects investment evaluations. Choosing a currency should not change the project's perceived risk or outcome.

It’s cheaper being green

Klement on Investing • 1 implied HN point • 02 Dec 24
💰 Finance 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。

Stock-based Employee Compensation: Value and Pricing Effects

Musings on Markets • 19 implied HN points • 13 Feb 14
💰 Finance Corporate Finance
  1. Stock-based compensation is an expense that affects a company's earnings. It should be counted and not ignored because it represents a real cost to the business.
  2. Adjusting financial metrics like profits to remove stock-based compensation can be misleading. It can make a company look more profitable than it really is, especially when comparing with others that don’t do the same.
  3. The way companies handle stock-based compensation can impact their valuation. Analysts need to account for this properly to get an accurate picture of a company's worth.

First thoughts

Musings on Markets • 39 implied HN points • 17 Sep 08
💰 Finance Corporate Finance
  1. The author has mixed feelings about starting a blog but wants to share their thoughts on finance regularly.
  2. They plan to discuss daily news and how it relates to corporate finance and valuation.
  3. The author intends to explore key finance themes and occasionally highlight specific companies for valuation discussions.

Data Update 4 for 2021: The Hurdle Rate Question!

Musings on Markets • 0 implied HN points • 10 Feb 21
💰 Finance Corporate Finance
  1. A hurdle rate is the minimum return a business wants from an investment based on its risk. If it's set too high, the company might miss good opportunities.
  2. There are different ways to calculate a hurdle rate, like looking at the cost of raising funds or considering the risk of the specific project. Using the right method helps better match the risk and reward.
  3. Hurdle rates can change based on business type, geography, and currency. It's important to understand these factors to make smart investment decisions.

The Rise of SPACs: IPO Disruptors or Blank Check Distortions?

Musings on Markets • 0 implied HN points • 09 Jun 21
💰 Finance Corporate Finance
  1. SPACs, or Special Purpose Acquisition Companies, have become a popular way for private companies to go public quickly. They raise money first and then look for a company to buy, which can save time compared to traditional methods.
  2. While SPACs can offer benefits like faster deals and more flexibility, they also come with downsides. The sponsors often benefit the most, which can leave regular investors with less value in the end.
  3. The rise of SPACs is linked to current market trends, such as low interest rates and high stock prices. However, as markets change, the weaknesses of SPACs may become more apparent.

Oracle of Omaha, Warren Buffett, has slashed Berkshire Hathaway's stake in $AAPL holdings by 50%.

Apple Wire • 0 implied HN points • 03 Aug 24
💼 Business Corporate Finance
  1. Warren Buffett's company, Berkshire Hathaway, has sold half of its Apple stock, dropping their holdings from 790 million to 400 million shares. This surprised a lot of people in the investment world.
  2. Despite this sell-off, Apple recently reported strong earnings, showing a revenue increase of nearly 5% and profits up almost 8% compared to last year. This is good news for Apple, even with Berkshire reducing their stake.
  3. Berkshire Hathaway has also been selling other investments, including shares in Bank of America, and now has a significant amount of cash available, totaling $277 billion. This could mean they are preparing for new investment opportunities.

A Viral Market Update XIII: The Strong (FANGAM) get stronger!

Musings on Markets • 0 implied HN points • 20 Aug 20
💰 Finance Corporate Finance
  1. The FANGAM stocks (Facebook, Amazon, Netflix, Google, Apple, and Microsoft) have become even more powerful during the market crisis. They've been driving the market recovery and are key to understanding future trends.
  2. While many companies are struggling, the FANGAM stocks are doing well due to their innovative business models and large user bases. They continue to grow and generate substantial profits, unlike older companies that face challenges as they age.
  3. Investors should be cautious with FANGAM stocks, as some may be overvalued despite their growth. It's essential to assess each company's value carefully before making investment decisions.

When Recession Hit Hard

Sector 6 | The Newsletter of AIM • 0 implied HN points • 24 Mar 23
💼 Business Corporate Finance
  1. The Indian IT industry is experiencing rapid changes in leadership. Several CEOs have recently stepped down or been replaced.
  2. Rajesh Gopinathan, CEO of TCS, has left his position, and K Krithivasan is set to take over. This shift reflects broader movements in the industry.
  3. Other companies in the sector are also seeing leadership changes, indicating a period of transition and uncertainty.

A Viral Market Update XI: The Flexibility Premium

Musings on Markets • 0 implied HN points • 02 Jul 20
💰 Finance Corporate Finance
  1. Flexibility is key for businesses during tough times. Companies that can quickly adapt their operations are often more successful.
  2. Investment, operating, financing, and cash return flexibilities are important factors. Companies that manage these well are more likely to thrive.
  3. However, focusing on flexibility can have trade-offs like shorter business lifecycles and social costs. It's crucial to balance flexibility with long-term stability.

A Viral Market Meltdown V: Back to Basics!

Musings on Markets • 0 implied HN points • 31 Mar 20
💰 Finance Corporate Finance
  1. The market is experiencing a lot of ups and downs, with some recovery seen recently. However, many global indices are still down significantly compared to earlier this year.
  2. Investors should go back to basic evaluation strategies during this unpredictable time. It's important to assess potential company shakeups and their financial health rather than solely relying on past data.
  3. The survival of companies is at risk, especially those with high debt or poor earnings. The post-crisis market might look very different as new winners and losers emerge.

Data Update 7 for 2020: Debt Delusions and Reality

Musings on Markets • 0 implied HN points • 21 Mar 20
💰 Finance Corporate Finance
  1. Companies with high debt are more likely to fail during tough times. It's important for them to manage their debt levels carefully to survive crises.
  2. Borrowing can seem appealing due to tax benefits, but it carries risks. The real impact of debt on a company's success depends on its ability to generate stable income.
  3. When assessing a company's debt, looking at different calculations is key. Debt measures based on earnings can reveal whether a company can handle its debt payments, even if its overall debt ratio looks good.

Data Update 5: Relative Risk and Hurdle Rates

Musings on Markets • 0 implied HN points • 27 Feb 20
💰 Finance Corporate Finance
  1. You can estimate the risk of different companies even if you don't like using betas. There are other ways to measure risk that might suit you better.
  2. When valuing investments, it’s important to first determine their risk, because that helps set a safe buying price. This means understanding both equity and debt costs.
  3. The cost of capital is calculated by looking at how much companies have to pay for funding, taking into account their mix of debt and equity. This is key for valuing companies correctly.

Data Update 1 for 2020: Setting the table

Musings on Markets • 0 implied HN points • 13 Jan 20
💰 Finance Corporate Finance
  1. Accessing raw data for companies is easy now, but choosing the right data sources and how to analyze it is important. It's like picking the best ingredients for a recipe.
  2. Using different types of data, like macro and micro data, helps provide a clearer picture of a company's financial health. Each type of data tells a part of the company's story.
  3. Data can be biased and misused, so it's important to look beyond just numbers. Making decisions based on data should include critical thinking and understanding the context.

The Perils of Investing Idol Worship: The Kraft Heinz Lessons!

Musings on Markets • 0 implied HN points • 27 Feb 19
💰 Finance Corporate Finance
  1. Warren Buffett and major investors can make mistakes just like anyone else. Investors shouldn't blindly trust their idols without thinking critically about their decisions.
  2. Stocks are not like bonds; companies aren't required to pay dividends. If a stock's yield seems too good to be true, it might not be sustainable.
  3. Brands can lose their appeal over time. Even famous names can struggle to remain relevant as tastes change and the market evolves.

January 2019 Data Update 8: Dividends and Buybacks - Fact and Fiction

Musings on Markets • 0 implied HN points • 08 Feb 19
💰 Finance Corporate Finance
  1. Companies are spending a lot more on stock buybacks compared to dividends. This trend has been growing since the 1980s, with more than 60% of cash returned to shareholders coming from buybacks in recent years.
  2. There's a debate about whether buybacks are good for the economy. Some say they help shareholders while others believe the money should be reinvested in businesses or used to increase wages for workers.
  3. Not all companies use buybacks in the same way. Larger, mature companies tend to buy back more stocks, but many smaller or high-growth companies are still focused on building their businesses instead.

Data Update 1 for 2021: A (Data) Look Back at a Most Forgettable Year (2020)!

Musings on Markets • 0 implied HN points • 09 Jan 21
💰 Finance Corporate Finance
  1. Data is most valuable when it's unique and exclusive. If everyone has access to the same data, it loses its worth.
  2. It's important to look at the big picture with data to avoid tunnel vision. By understanding industry norms, investors can better judge individual stocks.
  3. Data can expose misinformation and challenge common beliefs. Relying on facts rather than opinions helps clarify the truth in financial discussions.

Marking Time: A new year, a fresh semester and its class time!

Musings on Markets • 0 implied HN points • 12 Jan 21
🚌 Education Corporate Finance
  1. Teaching is all about having a clear story throughout the course. Each class connects through a central theme that helps students remember what they learned.
  2. Corporate finance is super important because it relates to any decision involving money. Knowing how to run a business means understanding corporate finance.
  3. Investment philosophies show that there isn't just one way to be a successful investor. Different strategies work for different people, and trying to copy famous investors often doesn't lead to the same level of success.

The Price-Value Feedback Loop: A Look at GME and AMC!

Musings on Markets • 0 implied HN points • 03 Feb 21
💰 Finance Corporate Finance
  1. The stock price and a company's value can be very different. Price is about what buyers are willing to pay, while value is about the company's actual worth based on its profits and risks.
  2. When a company's stock price goes up or down, it can create a feedback loop that affects its overall value. For example, higher stock prices can make it easier for a company to get loans or attract employees.
  3. Issuing new shares when the price is high can bring in cash, but it's a bit of a gamble because it can also lower the stock price if not managed carefully. It's all about finding the right balance.