Management Lessons from The Eminent Dead

September 29, 2022 in Signal from Noise

“Make friends with the eminent dead.”- Charlie Munger Investing is incredibly difficult, and the competition is fierce. Most people hope to get rich quickly with little work—of course, they do. Investors sometimes hear about some stock that folks have made money on and buy it blindly, hoping to get in on whatever the gold rush of the day is. Stories …

Game of Chromes: The Next Chapter of Mobility

in Signal from Noise

“When you play the game of thrones [chromes], you win, or you die [go bankrupt]. There is no middle ground.” – Cersei Lannister An intense quote from an intense show, obviously slightly adapted by our team. However, in a commercial sense, it captures the intense competition necessary to succeed in profitably selling automobiles. You can engineer a great vehicle and …

Where Does FinTech Stand After The Sell-Off?

August 18, 2022 in Signal from Noise

For much of human history, lending has been a highly regulated business. The Depression and the associated bank runs led to the creation of FDIC insurance and other guard rails for the banking system that consumers embraced. In some ways, the lending business has always been subject to the same risks, and effective due diligence has always been a key …

Healthcare Showing Promise: Why We’re Bullish

August 4, 2022 in Signal from Noise

Healthcare conversations over the past two years have centered almost exclusively on COVID-19, vaccinations, and therapeutics. Yet the dynamic sector offers much more to dissect as we emerge from the pandemic. This year, investors have flocked to healthcare stocks in search of safe-haven assets that tend to offer consistent revenue streams amid global uncertainty. Healthcare was a cornerstone of Mark …

The Fairest of The FAANG: Special Report on the Tech Generals

in Signal from Noise

On August 9, 2011, Apple became the largest company in the world by market cap when it briefly exceeded Exxon-Mobile for the first time. This marked the beginning of the golden age of the FAANG when their invincibility was assumed, and anything but a positive earnings surprise was out of place. Of course, the names did very well in the …

Three Stocks For Elevated Inflation and Volatility

June 30, 2022 in Signal from Noise

“I like to compare the Fed’s problem to the challenge of adjusting the shower in an old hotel, where there’s a lag of 20 to 30 seconds between the time you turn the faucet and the time the water temperature changes. It’s very hard to avoid scalding yourself or freezing yourself.” – Larry Summers This morning’s Core Personal Consumption Expenditures …

Inside The War Machine: The US Aerospace and Defense Sector

June 3, 2022 in Signal from Noise

The conflict in Ukraine has been a critical negative catalyst for markets. However, some industries like US Aerospace and Defense are poised to benefit from the watershed moment. We explore vital considerations in this industry and map out which companies may benefit from the conflict. We give an update on the changing character of the war as well.  There are …

The Big Five: Intangible Assets and R&D of Big Tech

May 19, 2022 in Signal from Noise

Intangible assets are not easily accounted for but nonetheless present value for a company. Examples include brand value, patents, trademarks, and company culture. We focus this Signal on a few giants: $AAPL, $AMZN, $FB, $GOOGL, and $MSFT. Intangible assets generally have finite lives in terms of usefulness. For accounting purposes, they’re amortized over the period where they are useful. They …

Other Voices: The Average Bank Stock Offers 109% Appreciation Potential to Year-End 2023

in Signal from Noise

This report is part of our occasion Other Voices format. As we run across interesting investment ideas or practices from outside of our firm. Today’s piece is written by John Rickmeier, CFA. Mr. Rickmeier is president of IDC Financial Publishing, which has been rating the safety and soundness of banks, savings institutions, and credit unions since 1985. Rickmeier has developed …