The hottest Financial Strategy Substack posts right now

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A Nothing Burger

Points And Figures • 692 implied HN points • 13 Feb 25
💰 Finance Trading Market Analysis Investment Banking Financial Strategy
  1. Moving the NYSE Chicago to Texas isn't a big deal in finance. It won't change how trading really works since most of it happens off the main exchanges anyway.
  2. Chicago's financial industry is struggling, with fewer major banks and investment firms. Many professionals believe Dallas is becoming a better place for finance careers.
  3. Texas is improving its business environment with low taxes and better competition for financial firms. This may help cities like Dallas attract more businesses and talent.

Why the low multiple series: Rental Car companies edition, part 2

Yet Another Value Blog • 1631 implied HN points • 11 Jan 24
💰 Finance Investing Companies Market Analysis Economic Trends Financial Strategy
  1. Rental car companies are currently trading at low multiples, making them a potentially cheap investment.
  2. Despite the persuasive bear case, the bull case for rental car companies includes aggressive capital returns to shareholders and potential for sustained earnings.
  3. Structural improvements in the rental car industry, such as consolidation and disciplined supply, could support profitability even if current high levels are not completely sustainable.

The Downfall of Red Lobster. Private Equity and the Complexities of the Restaurant Industry

Gad’s Newsletter • 44 implied HN points • 06 Jan 25
💼 Business Restaurant Industry Private Equity Financial Strategy Consumer Trends
  1. Red Lobster's decline came from a mix of poor decisions and weaknesses in management. They struggled with high debt and not enough investment in improving their business.
  2. The chain faced tough competition as more people preferred faster dining options. This change in consumer taste hurt Red Lobster, which relied on longer dining experiences.
  3. In contrast, Texas Roadhouse succeeded by focusing on strong leadership and customer satisfaction. They managed their growth wisely and kept their menu appealing to customers.

[PQ] PLTK: Playing Bad (Governance) Odds

Nongaap Investing • 5 implied HN points • 21 Jan 25
💰 Finance Investing Market Analysis Corporate Governance Risk management Financial Strategy
  1. Bad governance can sometimes lead to unexpected investment opportunities. It means that when things look risky or poorly managed, there might be a chance for profit.
  2. Investors need to carefully assess the risks before jumping in. Just because something seems like a good deal doesn't mean it won't come with surprises.
  3. Understanding the company's governance and management style is important. Knowing how they operate can help you make better investment decisions.
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Analyst do not read across enough

Klement on Investing • 3 implied HN points • 21 Jan 25
💰 Finance Investing Stock Market Earnings Reports Financial Strategy
  1. Analysts often miss important information from companies outside their coverage. This means they might not fully understand trends that affect all businesses in a sector.
  2. When analysts react to earnings news, they usually overreact, leading to big price swings in stocks they cover. This overreaction can create temporary price changes that might not last.
  3. Because heavily covered stocks tend to see bigger price moves after news, there could be a strategy to buy less covered stocks and sell more popular ones right after earnings announcements. But this requires quick actions that many investors can't easily pull off.

Megapost Part #3

Philoinvestor • 98 implied HN points • 04 Jul 23
💰 Finance Investing Stocks Market Analysis Financial Strategy
  1. Megapost Part #3 on Philoinvestor website with updates on ASOS and investment insights.
  2. Philo shares insights on ASOS narrative versus reality, focusing on the company's financial moves and transformation strategy.
  3. ASOS strengthens balance sheet with new financing, equity raise, and shift to new commercial model for profitability.

Dilution from Mega-Seed Rounds

Magis • 36 implied HN points • 19 Jun 23
💼 Business Startup funding Venture Capital Financial Strategy Investor Relations Entrepreneurship
  1. Startups can raise large upfront rounds to de-risk future fundraising and take advantage of money's present value.
  2. Founders should benchmark their equity dilution against similar funding rounds to understand ownership implications.
  3. Raising more capital than necessary can lead to giving away equity at a discount, especially for capital-efficient startups.

An Alternative Approach to Deep Tech VC

FreakTakes • 30 implied HN points • 13 Jul 23
💼 Business Venture Capital Technology Innovation Financial Strategy
  1. It's important to consider the original goals of organizations, like Y Combinator, which focused on providing fast experimentation and proof-of-growth.
  2. Deep tech VC can benefit from a model inspired by mid-20th century research organizations that focused on profitable problem-solving and spinoff companies.
  3. Collaboration with applied research professors at universities and shaping projects for future VC investment can enhance the quality and viability of deep tech investments.

Kent Beck: Business

Software Design: Tidy First? • 2 HN points • 30 Aug 23
💼 Business Entrepreneurship Business Ethics Startup Growth Personal Development Financial Strategy
  1. Kent Beck learned from his grandfather that business can be about maximizing benefits for oneself at the expense of others.
  2. Kent Beck initially believed that by creating value for others, nature would provide for him, but he later realized he needed to actively create a path for value to return to him.
  3. Kent Beck's journey taught him that running a business doesn't have to mirror his grandfather's questionable practices; a business can be mutually beneficial for customers and himself.

Be a rocketship or leave a big crater

Startup Real Talk • 1 HN point • 18 Oct 23
💼 Business Venture Capital Startup funding Investors Business Growth Financial Strategy
  1. Venture capital investors expect high returns, so startups need to aim to be either hugely successful or risk being considered failures.
  2. In the world of venture-backed startups, growth is essential - if a business can't sustain growth, it may face failure.
  3. Founders should carefully assess if venture capital funding aligns with their business goals and take steps to mitigate potential misaligned interests with investors.

Buffett and Bank of America: Playing Poker with Patsies...

Musings on Markets • 0 implied HN points • 26 Aug 11
💰 Finance Investing Banking Market Analysis Corporate Finance Financial Strategy
  1. Warren Buffett's investment in Bank of America might seem helpful, but it actually comes with terms that could hurt the bank's stockholders. Buffett gets great benefits while the bank may take on extra burdens.
  2. Buffett's deal included a hefty dividend and options to buy shares at a low price, which could lead to big profits for him. However, Bank of America still risks losing control over its dividends and stock buybacks.
  3. While some people see Buffett’s involvement as a sign the bank is doing well, the deal's terms suggest the opposite. It raises questions about whether Bank of America is truly stable or hiding bigger financial problems.

The Facebook Valuation!

Musings on Markets • 0 implied HN points • 05 Jan 11
💼 Business Investing Valuation Private Equity Market Analysis Financial Strategy Investment Valuation Private Equity Market Analysis Corporate Finance
  1. You can sometimes estimate a company's value from a single investment, but it's tricky since other benefits might affect the real value.
  2. Some companies, like Facebook, choose to stay private to avoid public scrutiny and to keep certain details secret, which can have its advantages.
  3. Valuing a private company like Facebook requires access to financial data and future projections, but many factors can make this complex and uncertain.

Snowmen and Shovels: Investing Lessons?

Musings on Markets • 0 implied HN points • 22 Jan 12
💰 Finance Investing Valuation Economics Market Trends Financial Strategy
  1. Investing can be divided into two main types: growth and value. Growth investors are like happy kids playing in the snow, while value investors are like the parents shoveling snow.
  2. Both growth and value investors need to be careful not to go to extremes. Each has something valuable to offer but can also miss important facts about the market.
  3. To value companies well, it's important to balance optimism and realism. This means thinking about how a company might perform in both good and bad situations.

Seed Investing: The State of the Union

Digital Native • 0 implied HN points • 15 Nov 23
💼 Business Venture Capital Startup Investing Market Trends Fundraising Financial Strategy
  1. Seed investing is experiencing a rough period due to market downturn, impacting both pre-seed and seed stages.
  2. Despite the challenges, early-stage investing remains compelling, attracting multi-stage investors looking for opportunities in Seed.
  3. Seed valuations are relatively high, but a focus on reasonably-priced rounds at the earliest stages can lead to significant returns for investors.

If it is a strategic growth investment in China, the numbers don't matter! Or do they?

Musings on Markets • 0 implied HN points • 17 Mar 14
💼 Business Investing Valuation Market Analysis Financial Strategy Economic Trends
  1. Investors face tough choices when stock prices differ from their valuations. They can either trust their analysis, adapt to market trends, or distort values to justify decisions.
  2. Buzzwords like 'growth potential' and 'strategic investment' can be misleading. They sometimes mask the lack of solid analysis and might misguide investors.
  3. When considering investments in markets like China, it's crucial to understand the local dynamics. Simply wanting a piece of the market isn't enough; being aligned with local preferences is key.