Author: Jerry

New habit: listening to earnings calls at the gym. Thanks Borsa Finance. Excited for following earnings over the next week or two and their respective macro+internal ops reasons. Below is a top-level one-liner on each but can dive deeper into each company and their long-term competitive advantages. TransDigm Group Inc. (strong cap investment conscious mgmt … Continue reading Quarterly Earnings – Podcast

Plumeri was CEO of North America at Citi which was the best performing stock in the 1990s and now is a senior executive at KRR, having turned around Willis and First Data. In this 2019 talk he shares eight of his first principles of value creation. Some takeaways: Viking effect of burning boats, getting everyone … Continue reading First Principles of Value Creation by Joe Plumeri

Starbucks is one of those very small handful of companies who have done a great job at creating and keeping their customers, and potential customers thereof as well, in their ecosystem through their app. It is one thing to create an app (most chain stores have already created their own apps by now as of … Continue reading SBUX: 0% Financing from Customers

There are many ways to finance the early phase and growth portion of any enterprise's lifecycle, whether it be with bank loan, private loan, credit, equity and many more financing channels. In the traditional venture capital model, LP provides capital to GP which then selectively deploy those capital into supposedly high growth targets, and those … Continue reading Leasco Data Processing Corp. – Asset Depreciation and Access to Capital, Cash Conversion Cycle

While both equity and credit bubble both involve higher price fundamentally, the underlying theses are generally inversed relatively to the implied volatility. This is a thought on the philosophical layer, and as such, in practice, there is some level of linkage in the capital flow between the equity and credit market. An equity bubble is … Continue reading Credit vs Equity Bubble and Implied Volatility and Level of Certainty of Future

The next wave of consumer fintech startups will likely not come from US or China but from: Indonesia India Nigeria Brazil ...due to the existing cash-heavy financial system paired with high mobile penetration and ironically, respectively, their slowly maturing reserve banking system. PS: I’m personally more optimistic about Indonesia given the continuous improvements in their … Continue reading Next wave of consumer fintech startups

I think as long as we continue to situate in a low inflation environment, capital deployer will likely continue to favor businesses who can generate high markups and margin via pricing power... which means horizontal mergers will be implemented macro-wise and ultimately, further market concentration of human capital and financial capital will continue, until some level of … Continue reading Low Inflation Dynamic Favors Business with Pricing Power

Thoughts on the recent antitrust discussion on GOOG, FB and MSFT. "Price effects alone do not provide a complete picture of market dynamics, especially in digital markets" (harm to innovation + diminished quality other major elements) Standard Oil Case Study

Friday Thoughts: negative nominal interest rate. Yields can always go more negative and the convexity at negative rates is huge. Below zero rate is therefore NOT about INCOME but all about CAPITAL GAIN. Furthermore, it’s also about how you fund it. If short-term rates are more negative (which they are in a decent % of … Continue reading Negative Interest Rate Bound

JP Morgan Advancing Real-Time Payment - LINK Adding SEPA Instant is another step towards offering real-time payments around the globe,” stated Sungmahn Seo, Managing Director, Head of EMEA Payments & FX for J.P. Morgan Treasury Services. “SEPA Instant will allow our clients the ability to make/receive a payment within seconds, for credit transfers in EUR up … Continue reading JPM Instantaneous Cross-Border FX Transactions