The hottest Valuation Substack posts right now

And their main takeaways
Top Business Topics
Yet Another Value Blog β€’ 1159 implied HN points β€’ 27 Jan 24
  1. The concept of an opportunity cost stock is important in investing for making trade offs and decisions.
  2. Buffett's choice of Wells Fargo as his opportunity cost stock highlights the importance of timeless industries and consistent returns.
  3. Flexibility and adaptability are crucial in managing opportunity cost stocks as circumstances and information change.
thezvi β€’ 1383 implied HN points β€’ 30 Nov 23
  1. The new board at OpenAI is officially back to its previous state.
  2. An investigation and the actions of the new board will gradually reveal the future of OpenAI.
  3. Having a strong board that can hold the CEO accountable is crucial for organizations like OpenAI.
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Philoinvestor β€’ 491 implied HN points β€’ 26 Jan 24
  1. NVIDIA's stock price increased significantly faster than its earnings, raising questions about its valuation.
  2. The launch of Chat GPT led to a surge in demand for GPUs and an uptick in NVIDIA's stock.
  3. Microsoft's $10 billion investment in Open AI and the AI hype train are contributing factors to the current market dynamics.
Yet Another Value Blog β€’ 1218 implied HN points β€’ 21 Oct 23
  1. Stock market has had a rough few months with significant declines
  2. Current market climate has a lot of fear and worry, but it might be a good time to consider buying stocks
  3. The rise in interest rates has not led to a significant stock market sell-off, suggesting stocks may still be relatively attractive
The Wolf of Harcourt Street β€’ 393 implied HN points β€’ 01 Feb 24
  1. The newsletter discusses investing in NU Holdings as a new position due to its growth potential in Latin America.
  2. The author shares insights on adding to their Auto Partner position, seizing an opportunity when the stock price dropped.
  3. The author presents a buy list, highlighting Evolution and NU as stocks to watch and potentially add to the portfolio.
Compounding Quality β€’ 2614 implied HN points β€’ 23 Feb 23
  1. In the short term, stock prices are driven by fluctuations in valuation, while in the long term, they follow the intrinsic value of a company.
  2. When investing, it's crucial to buy stocks at a discount to their true worth to avoid poor results.
  3. Consider factors like Return On Invested Capital (ROIC) and expected growth when evaluating the value of a company to make informed investment decisions.
The Wolf of Harcourt Street β€’ 805 implied HN points β€’ 14 Sep 23
  1. Adyen's success is attributed to its ability to simplify complex payment processing challenges for businesses, nurturing customer relationships and offering tailored solutions.
  2. Adyen competes in a crowded payment processing landscape, facing challenges such as intense competition, commoditization of payments, and the need to differentiate through value-added services.
  3. Adyen is well-positioned to capitalize on the growing digital payment market and expand its reach by supporting emerging technologies and offering versatile payment solutions.
Mindset Value β€’ 353 implied HN points β€’ 05 Oct 23
  1. New Jersey has limited licenses for cannabis companies, leading to high prices and lower quality products.
  2. Grown Rogue is entering New Jersey with their high-quality, low-cost cannabis, potentially disrupting the market.
  3. Grown Rogue's operational excellence and efficiency position them as a valuable investment opportunity in the cannabis industry.
SaaS Engineering β€’ 137 implied HN points β€’ 07 Jan 24
  1. Understanding the difference between preferred and common stock is crucial for calculating holding values.
  2. Writing down investments only makes sense if a company's value decreases below the size of its liquidation preference relative to the investment.
  3. High valuations may not always benefit investors due to misaligned incentives, especially in scenarios where the company's valuation is higher than its true worth.
Martin’s Newsletter β€’ 569 implied HN points β€’ 10 Jul 23
  1. The post includes a list of 1300 AI companies and 900 AI investors along with the top 50 companies by valuation.
  2. The author shares their personal 'Top 50' AI companies that reflect their personal interests and preferences.
  3. OpenAI is highlighted as a company with the potential to become a $1 trillion company due to talent, management, and the ability to put out better products faster than the competition.
Mule’s Musings β€’ 346 implied HN points β€’ 12 Sep 23
  1. ARM is an important company in the IP industry, famous for its power efficiency and reduced instruction set.
  2. ARM's history includes significant milestones like going public in 1997 and being acquired by Softbank in 2016.
  3. The ARM IPO is highly anticipated, with the company aiming to list between 50-55 billion, showcasing its key role in the industry.
Dan Davies - "Back of Mind" β€’ 393 implied HN points β€’ 16 Jun 23
  1. The concept of 'change of valuation basis' in business can indicate stress and financial strain
  2. Valuing buildings can vary depending on the purpose, whether it's for selling, lending, or immediate sale
  3. Understanding 'change of valuation basis' sheds light on liquidity, solvency, and the socially constructed nature of financial reality
Mindset Value β€’ 393 implied HN points β€’ 09 Mar 23
  1. Nelnet's book value has grown consistently and it has never had a losing year, which is impressive.
  2. Nelnet is undervalued as its book value does not reflect the true value of its businesses and investments.
  3. Nelnet's investments in companies like ALLO, solar energy, and HUDL show potential for significant growth and increased value.
Value Investing Substack β€’ 353 implied HN points β€’ 11 Jun 23
  1. In 2016, Apple stock was undervalued with a low P/E ratio, making it an attractive investment opportunity.
  2. Apple's brand strength and ability to create standardized products quickly were key factors that Buffett saw in the stock.
  3. Buffett's investment strategy in Apple was similar to his approach with Coca-Cola, focusing on consistent returns and solid fundamentals.
Michael’s Newsletter β€’ 157 implied HN points β€’ 26 Sep 23
  1. Long-term contracts and high projected growth rates are key for building a high-value consultancy.
  2. Consultancies can increase their valuation by securing multi-year contracts and focusing on scalable growth strategies.
  3. Specializing and differentiating in your field can help a consultancy stand out and attract long-term clients.
Entry Level Investing β€’ 16 implied HN points β€’ 12 Mar 24
  1. Tech companies, especially high-growth but unprofitable ones, are highly impacted by interest rates during investing.
  2. The value of tech companies is largely based on future projections, making them sensitive to discount rates which determine present value.
  3. In a market with expensive capital, tech companies' future profits are heavily discounted, while in a market with cheap capital, their value can increase significantly.
Behavioral Value Investor β€’ 148 implied HN points β€’ 06 Aug 23
  1. Even successful investors like Warren Buffett make mistakes, which is a crucial lesson for all investors.
  2. When investing, it's important to stick to your circle of competence to avoid big investing mistakes.
  3. Paying a high price for an investment with little room for error can be a risky move, highlighting the importance of a margin of safety.
Brick by Brick β€’ 18 implied HN points β€’ 19 Feb 24
  1. Stock options are a key part of startup employee compensation, involving vesting schedules and the opportunity to buy company shares at a set price.
  2. 409A valuations determine the fair market value of a company's stock, influencing employee stock option prices and taxation.
  3. The 90-day window after leaving a company requires employees to decide whether to exercise their vested stock options or lose them, potentially facing significant financial implications.
Entry Level Investing β€’ 84 implied HN points β€’ 28 Feb 23
  1. The concept of the 'Power Law' in venture funding states that a few successful investments drive fund returns, not a normal distribution.
  2. Startup valuations are often based on revenue multiples, deviating from traditional valuation methods like free cash flow analysis.
  3. Overvaluation, excessive spending, and failure to grow into valuations can lead to down rounds, hurting startups and investors.