The hottest Financial Analysis Substack posts right now

And their main takeaways
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Top Finance Topics

Big Gaming Industry Primer

Value Investing Substack • 294 implied HN points • 02 Jun 23
💼 Business Gaming Industry Mergers & Acquisitions Financial Analysis Market Trends
  1. Big Gaming sector has wide moats with hit-based revenue streams like microtransactions and lootboxes, making it difficult for new entrants to compete.
  2. Big Gaming companies benefit from infinite free cash flow streams from hit franchises and have pricing power in the industry.
  3. There is a potential convergence between Big Gaming, Big Media, and Big Tech sectors, leading to synergies in brand assets and content creation.

Why Your Startup Idea Isn’t Big Enough for Some VCs? | Sam Altman Strategy - To Find The Right Problem To Solve? | VC Remote Jobs & More

Venture Curator • 139 implied HN points • 03 Nov 23
💼 Business Entrepreneurship Venture Capital Startup Strategy Financial Analysis Remote Jobs
  1. Investors look for startup ideas with the potential to reach a billion-dollar valuation, known as 'big ideas,' and may reject ideas perceived to lack that scalability.
  2. Venture capital operates on a power law model, where a small percentage of investments drive the majority of returns, requiring each investment to potentially return the entire fund.
  3. Founders should focus on solving popular, growing, urgent, expensive, mandatory, and frequent problems to increase their startup's chances of success.

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.
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Picking Stocks Is Hard

Spilled Coffee • 20 implied HN points • 06 Nov 24
💰 Finance Investing Stock Market Portfolio Management Financial Analysis Economic Trends
  1. Picking stocks is really tough because most of the returns come from a tiny number of stocks. It means many investors, even pros, often lose money.
  2. About two-thirds of stocks don't do as well as the overall market. This makes it harder for investment managers to pick winning stocks.
  3. Over 90% of active fund managers struggle to beat their benchmarks over ten years. It shows just how challenging stock picking really is.

Avon Protection, turning the corner.

Philoinvestor • 78 implied HN points • 25 Jan 24
💼 Business Investing Company Updates Financial Analysis Industry insights
  1. Avon Protection faced challenges with its body armour segment, resulting in a strategic review and decision to wind down that business.
  2. Management decided to focus on respiratory and helmets, simplifying the business.
  3. The company's decision to streamline its operations was driven by risks and uncertainties associated with the body armour segment.

OXY's Outsider CEO, Vicki Hollub & Warren Buffett's Next AAPL (Divd Yield - ST: 6%, LT: 11.0%)

Value Investing Substack • 137 implied HN points • 17 Apr 23
💼 Business Stocks Investing Oil industry Financial Analysis Capital allocation
  1. Warren Buffett has been acquiring Occidental Petroleum shares and the company is focused on returning shareholder capital.
  2. Occidental Petroleum is committed to limiting production growth and allocating capital towards shareholder return.
  3. Crude oil prices are expected to be volatile, and Occidental Petroleum has a high dividend yield compared to other E&P competitors.

The Best and Worst DeFi Investments of 2021

DeFi Education • 799 implied HN points • 28 Dec 21
🔮 Crypto Investments Decentralization Blockchain Financial Analysis Market Trends
  1. Investing in DeFi can be risky, so it's important to recognize projects that might seem profitable but could actually be scams, like Olympus DAO, which raised concerns about being a Ponzi scheme.
  2. Strong projects like Sushi and Rari had mixed results for investors. Issues within the teams or changes in market conditions can dramatically affect performance, showing the need to stay informed.
  3. Timing and strategy are key in investing. It's helpful to sell at good moments and manage how much of your portfolio is in high-risk investments to protect against big losses.

#164 – Normal-ish

Below the Line from Kevin LaBuz • 5 implied HN points • 08 Dec 24
💼 Business E-commerce Market Trends Consumer behavior Financial Analysis
  1. E-commerce is stabilizing after the pandemic, but shoppers are being more careful with their spending. People are focusing on buying essentials instead of luxury items.
  2. Big companies like Amazon are growing well because they sell a lot of everyday items. Smaller companies are struggling to compete as customers are prioritizing good prices and value.
  3. As the market normalizes, companies are working on improving their core businesses and cutting costs. Some, like Etsy, are trying new strategies to attract customers in a tough economic environment.

Using Alternative Data for long-term investment debates: Tesla thought exercise

The Data Score • 79 implied HN points • 26 Apr 23
💰 Finance Investment Financial Analysis Alternative Data Tesla
  1. Alternative Data is not only valuable for short-term predictions but can also enhance long-term forecasts.
  2. Investors should approach long-term investment decisions with a Bayesian mindset, considering various data points and recalibrating views as new information emerges.
  3. Breaking down unanswerable big questions into smaller, measurable components, selecting relevant data metrics, and continuously monitoring and adjusting long-term forecasts can lead to better decision-making in investing.

Interviewing Company CEOs: The Must-Ask Question Checklist Every Investor Needs

Behavioral Value Investor • 126 implied HN points • 30 Jul 23
💼 Business Investment Financial Analysis Company strategy Company Culture
  1. Prepare questions for a CEO interview to focus on 'what' and 'how' without being accusatory.
  2. Before interviewing a CEO, decide your goals such as learning, relationship building, or understanding culture.
  3. Topics to cover during a CEO interview include strategy, customers, economics, capital allocation, company culture, and CEO motivations.

How to read a stock chart

Concepts of Finance 🧠 • 119 implied HN points • 14 Feb 23
💰 Finance Investing Stock Market Financial Analysis Market Trends Equities
  1. Stock charts show how a company's stock performs over time. You can see if the price is going up, down, or staying the same.
  2. Important parts of a stock chart are the price, high/low for the day, and market cap. These help you understand how the stock is doing right now and in the past.
  3. You can set different timeframes to see how a stock has performed over days or even a year. This helps you get a better picture of its trends.

House hacking a $1.05m fourplex in Boise

The Leonard Letter • 19 implied HN points • 19 Jan 24
💼 Business Real Estate Investment Property Management Rental market Financial Analysis
  1. House hacking a fourplex in Boise with renting possibilities near the university could be a smart move for your portfolio.
  2. Initial financial analysis shows a slight monthly loss, but potential to increase income by furnishing rentals and bundling utilities.
  3. Consider leveraging student housing demand and available options to generate additional income and potentially turn the property profitable.

The media is lying about Stock Market Volatility [Finance Fridays]

Technology Made Simple • 79 implied HN points • 12 Aug 22
💰 Finance Stock Market Volatility Investors Financial Analysis
  1. Stock market volatility is not solely caused by 'Robinhood investors'; experts' claims are not well-supported by research and basic math
  2. While individual firms have seen increased volatility, overall market volatility has remained relatively consistent, highlighting the importance of looking beyond surface-level narratives
  3. Opportunity cost plays a significant role in firm-level volatility, with investors impacting individual stocks based on trends, emotions, and investment decisions, even if market-wide volatility does not reflect this

Clouded Judgement 12.27.24 - 2024 Year End Review

Clouded Judgement • 8 implied HN points • 27 Dec 24
💰 Finance Market Trends Investment Strategies Financial Analysis Economic Indicators
  1. In 2024, the median multiple for cloud software stocks was 6.1x, showing stability throughout the year. This means that software companies were valued similarly at the beginning and end of the year.
  2. Only a few companies had impressive growth, with just 3 companies increasing over 100% in stock price. Most companies had mild performance, with half going up and half going down.
  3. Key companies like Cloudflare, CrowdStrike, and Datadog consistently ranked in the top ten for valuation multiples. This shows their strong market position over the past few years.

Golden Handcuffs[Finance Fridays]

Technology Made Simple • 79 implied HN points • 21 May 22
💰 Finance Compensation Stocks Incentives Investing Financial Analysis
  1. Golden handcuffs are financial incentives designed to keep employees with a company for a specific period by offering benefits like stock options.
  2. Companies use golden handcuffs to retain good talent, align employee incentives with company success, and when cash flow is limited.
  3. Considerations when dealing with golden handcuffs include potential stock value fluctuations, public vs. private company shares, and evaluating companies for true value amidst market hype.

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.

Vroom Goes Bust: A Cautionary Tale in the Fast Lane of Online Used-Car Sales

Gad’s Newsletter • 23 implied HN points • 29 Jan 24
💼 Business E-commerce Financial Analysis Scalability Future outlook
  1. Vroom, a once promising player in online used-car sales, faced financial struggles and announced ceasing e-commerce operations.
  2. Comparison between Carvana and Vroom reveals operational challenges like inventory turnover, highlighting Vroom's decline in efficiency.
  3. Online used-car platforms face hurdles like high inventory costs, aging inventory, and challenges in digital transformation.

Back to Earth or Temporary Setback? Revisiting the FANGAM Stocks

Musings on Markets • 59 implied HN points • 12 Feb 22
💰 Finance Investing Stock Market Valuation Financial Analysis Market Trends
  1. The FANGAM stocks have been key players in the US stock market, but their recent performance has been mixed. Companies like Netflix and Facebook saw big drops, while Amazon and Google surprised with strong results.
  2. Valuations of these companies suggest that Facebook is the most undervalued, as it struggles with its story and user numbers. In contrast, Netflix appears overvalued as it grapples with slowing growth and high content costs.
  3. Companies like Microsoft and Apple managed to stay out of controversies and continued to grow. Microsoft's recent acquisition of Activision shows its ambition, while Apple is benefiting from being seen as a privacy protector.

Clouded Judgement 8.4.23 - Cloud Giants Q2 Update

Clouded Judgement • 31 implied HN points • 04 Aug 23
💼 Business Cloud Computing Technology Trends Financial Analysis Market Performance Valuation Metrics
  1. Key cloud software companies like AWS, Azure, and Google Cloud are continuing to grow in Q2.
  2. AWS saw a growth rate of 12% in Q2, Azure at 27%, and Google Cloud at 28%.
  3. Valuation multiples for SaaS businesses are generally based on revenue, with median multiples varying based on growth rates.

🧪️ The surprising quarterly results of tech firms ⌛ ⌚

Sector 6 | The Newsletter of AIM • 19 implied HN points • 13 Feb 22
💼 Business Market Trends Revenue growth Financial Analysis
  1. Tech companies like Alphabet, Amazon, Apple, and Microsoft are doing well, helping to keep the market strong.
  2. Alphabet Inc. reported a big revenue growth of 41% year-over-year, totaling $257.6 billion in the last quarter of 2021.
  3. In contrast, Meta faced a huge loss, with $230 billion wiped off its value in just one day.

Neil Woodford launches an expensive new website

Fund Marketer • 1 implied HN point • 24 Apr 24
💼 Business Investment Marketing Entrepreneurship Financial Analysis Content creation
  1. Neil Woodford has launched a new website that looks more professional than a simple blog. It's designed to provide economic insights and commentary.
  2. Creating consistent, high-quality content takes time and money. Maintaining this effort over time can be challenging for individuals or companies.
  3. There are different ways to succeed in content creation. Woodford might need to bring in help to keep up with the demands of running this new venture.

Can you Scale a Venture Capital Fund?

Superfluid • 2 HN points • 14 Jun 23
💼 Business Venture Capital Investment Strategies Startup Ecosystem Financial Analysis
  1. The current venture capital model is flawed with oversupply of capital leading to inflated early-stage valuations.
  2. There is a need for a rethinking of venture capital funding model to balance fund size, number of investments, and ownership stake.
  3. Smaller seed rounds focused on hitting milestones may be more rewarding than accepting large cheques with high valuations.

Stock-based Employee Compensation: Value and Pricing Effects

Musings on Markets • 19 implied HN points • 13 Feb 14
💰 Finance Financial Analysis Corporate Finance Accounting Valuation
  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.

Investing Update: 3 Stocks For 2024

Spilled Coffee • 0 implied HN points • 13 Jan 24
💰 Finance Stock Market Financial Analysis
  1. Stock market showed strong performance, reaching new all-time highs with certain companies taking the lead.
  2. Historical data suggests slow starts in the market may lead to rallies later in the year.
  3. Consider investing in stocks like Alphabet, CrowdStrike, and Home Depot for 2024, based on potential growth opportunities and market trends.

New Report: Mixed Sentiments in Labor Productivity with Bullish Indicators Outweighing the Bearish Ones

The Tweetsift Report • 0 implied HN points • 06 Mar 23
💼 Business Productivity Labor Economic Indicators Market Trends Financial Analysis
  1. Nonfarm business sector labor productivity increased by 1.7% in Q4 2022, despite declining annually by 1.7%.
  2. Nonfinancial corporate sector productivity rose by 0.6% in Q3 2022, contrary to previous reports of a 1.6% decline.
  3. Overall, the report indicates more bullish sentiments in labor productivity, with positive indicators surpassing negative ones.