24. Economic moats are cool but aren’t the only thing. Commoditized businesses can be great investments despite low AVERAGE returns if the range of possible outcomes is wide enough.
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35. Insurance float is one of the worst kinds of float because what you can do with it is heavily regulated. If someone is starting an insurer for float, run away. There’s a good chance they’re either living decades in the past, planning a scheme, or lacking in creativity.
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36. Anti-prestige businesses are often not appreciated on the market. There’s often value in companies that cater to non-coastal regions and rural communities.
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37. Having a list of businesses that should do well in alternate economic environments can be useful to help you move quickly if things change.
$FMBL will make a killing if interest rates rise, for example, because of its huge base of non-interest bearing deposits.Show this thread -
38. Get on the mailing lists of the major investment newsletter publishers. Sometimes they’ll pitch a small cap stock for months at a time in their advertising, if the return on ad spend is high enough. Between a small float and a million Boomers, interesting things can happen.
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39. Alternatively, just check out Stock Gumshoe and avoid the spam. There’s a guy there who analyzes the advertisements and outs the stocks they’re pitching. Sometimes the momentum from a repeated pitch alone is enough to be worth a small wager. http://www.stockgumshoe.com
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40. Who knows how long it will last with the new proposed SEC rule, but there is an opportunity to create catalysts with Pink Sheet stocks that don’t post their financials publicly. Using shareholder rights laws to get and share them, you can sometimes help market efficiency.
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41. Structural subordination sounds like a BDSM theme but unfortunately it’s just a credit term mostly relevant in distress scenarios. Well, I guess it’s not that different.
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43. Stock ownership doesn’t necessarily represent partial business ownership in any realistic sense. He who has the gold makes the rules.
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44. Not every company is even trying to become more competitive over time. Many exist only to provide sinecures to their agent operators. There’s money to be made in companies that bother to care.
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45. Massive presentations about a new position are massive not because that much information is relevant, but because it looks more convincing and shows people you “did your homework” Using research as marketing. Very smart.
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46. The best players in bad industries are worth investigating. If economics are so poor most companies can’t make money, you MAY not have to deal with new players boosting industry capacity. Top dog’s scale can let it wring out profits surrounded by a moat of broken glass.
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47. Real estate has some unique advantages in terms of leverage and taxes, but also has unique problems. If you don’t manage it yourself, you’re subject to an agency problem with expense pass throughs. If you do manage it yourself, you’ve bought a part time job.
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48. The Greater Fool Theory is something to be cherished, not maligned. Playing it opens up a whole new world of opportunities where psychology is a competitive advantage. But if you never try, you’ll never get better.
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50. There is a misunderstanding that advertising returns could not be measured before big tech came along and provided a treasure trove of data. This is false. Keyed ads have been a thing in direct response advertising since before Silicon Valley was even an idea.
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Halfway there. Even fifty is hard without relying on basic bitch truisms! Time for a lunch break! Thanks to everyone who has enjoyed and shared my thread so far.
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