New post is out: Find out who Charlie Munger wouldn't want marrying into his family and why he finds millennials peculiar. Also his views on why he and Warren Buffett have been so successful, China, Crypto, $COST vs $AMZN, Elon and more!
You and @dillon_jacobs are doing a good job getting me interested in $GPRO again— they were one of my worst investments 2014-2016 so it's hard to revisit. But I do like it when a small segment of an overlooked business starts growing fast. Those can be diamonds in the rough.
Lot of folks bullish on $GOOG, anyone else worried it can't do in app discovery (or search), in a world where everything is moving on our phones and in apps...just a thought
I would argue that Google has already been around since that has taken place, people spending more times in apps. They also own an appstore, and search business is not under threat still.
An excerpt from my investment notes on $GPRO coming in the next few days - subscribe (for free) if you want it direct to your inbox and thank you for the support.
GoPro has gone through a step change in terms of its business model. Historically the company was focussed on selling hardware products via retailers. This revenue was lower margin and one off in nature. Today the business has pivoted to a hardware plus subscription model. The business has also returned to growth, with TTM revenues growing in the last 4 quarters, along with ~18% FCF generation. GoPro is a stock that has lost trust with the market and today it trades at ~5x TTM free cash flow.
Some thoughts on anchoring bias and how it affects investment decisions
"It wasn’t until a peer called me out on it. He noted despite the obvious merits of the investment, I was still a hard pass. Where was the logic? There was none."
Absolutely. Cognitive bias is real (not just in investing but also hiring comes to mind - which I do a lot of). It's amazing how easily our brains can convince itself of an alternative reality.
