Andre Robinson

[John Mihaljevic @mihaljevic]

The clearest 11 minutes I have heard on why the AI capex boom may not pay off. @ChrisBloomstran at the Zurich Project on the depreciation wall, ~$650B of off-balance-sheet SPV debt, and the circular financing between Nvidia, OpenAI, and the hyperscalers.

[Andre Robinson @AndreHyperD]

@IrrationalMrkts, Congrats joining the intrinsic value podcast. We briefly met at small cap discoveries. I look forward hearing your takes on businesses and hoping you share some of your small cap ideas.

[Compounding Quality @QCompounding]

Learning has never been so easy.

Today, you can learn more buy watching a documentary than a book.

Here are 7 Documentaries that teaches you about money.

[Andre Robinson @AndreHyperD]

Look what they spent before the dotcom bubble.
https://t.co/7UWcHyS7rN

[Andre Robinson @AndreHyperD]

@QCompounding There was a short term panic if I recall.

[Andre Robinson @AndreHyperD]

@QCompounding One thing missing is the financing structure that Buffett used borrowing the Japanese yen to fund these purchases. @QCompounding could you elaborate on this trade and the arbitrage? And also the impacts, as recently the Japanese government was implying/raising rates?

[Andre Robinson @AndreHyperD]

@QCompounding Send

[Finding Compounders @F_Compounders]

Joel Greenblatt would always hand out charlie479’s(Nobert Lou) first three write ups to his students a Columbia to show them what a brilliant investment thesis looks like.

Here is one of the VIC write ups that Joel Greenblatt hands out to his students:

$NVR

[Andre Robinson @AndreHyperD]

https://t.co/LELuK9tZ4f

[Finding Compounders @F_Compounders]

“The economy is shifting from one that is built on tangible investments to one built on intangible assets.”

Key takeaways from Intangibles and Earnings by @mjmauboussin and D.Callahan

This has complicated the interpretations of financial statements. This is because tangible investments are reflected on the balance sheet and intangible assets are reflected on the income statement. Tangible investments are capitalized over periods of time while intangible investments are expensed.

Investments are outlays in the present that are expected to generate earnings in the future. We want investments whose present value of future earnings is higher than their cost.

Earnings can be grossly misrepresented for businesses that invest heavily via the income statement (ie. Investing heavily in intangible investments). This is a problem for investors who use multiples such as EV/EBITDA and the P/E ratio.

Lets use Amazon as an example:
-At the end of 2021, they had EV=$1.725
trillion and EBITDA=$59.2 billion
-Reclassifying $60.1 billion in expenses as investments increases net income from $33.4
billion to $61.5 billion
- These adjustments present a more accurate portrait of the company's financial position.

The multiples become substantially lower.

Lets look at two hypothetical companies:
- Company A buys a machine for $1000 that has an estimated useful life of 5 years. The present value of expected cash flows is $1500
-Company B spends $1000 to acquire a subscriber who is expected to remain a customer for 5 years. The present value of the customers expected future cash flow is $1500.

The accounting treatment of these two
"identical" investments is different.

For Company A, the investment is capitalized and depreciated $200 a year for 5 years.

While for Company B it immediately reflects the $1000 customer acquisition cost as an expense in SG&A.

Company B will therefore "lose" more in earnings the faster it grows, even though acquiring customers creates value.

It is hence clear that we need a solution that sorts the earnings and investment piles the same way. We can approach this by separating SG&A expenses into maintenance and investment parts. This requires knowing what percentage of SG&A expense is an investment and the appropriate asset lives.

[Andre Robinson @AndreHyperD]

@MicroCapClub @salim_najem Wow I am envious

[Andre Robinson @AndreHyperD]

@farnamjake1 Can't wait for the veggies becoming antifragile while hiking in the rain.

[Dalius - Special Sits @InvestSpecial]

21) @gatorcapital (Value)
22) @InvestorPilk (Value)
23) @Fairlight_Cap (Value + Special sits)
24) @vdmandele (Value)
25) @_Tourlite (Value + Special sits)
26) @DeepSailCapital (Value)
27) @JamesHollier24 (Value)
28) @Headwaters_Cap (Value)
29) @SagaPartners (Value)
30) @WhiteBrookCap (Value)
31) Greelingt Capital (Value)
32) Palm Valley Capital (Value)
33) Fiduciary Management (Large cap value)
34) Greiff Capital Management (Special sits)
35) Palm Harbour Capital (Value)
36) Immersion Investments (Value)
37) Jackson Peak Capital (Value + Special sits)
38) Silver Ring Capital (Value)
39) Kathmandu Capital (Value + Special sits)
40) Wedgewood Partners (Large cap value)

Here is the sheet with the full list and links to each fund's website, where you can already find the letters: https://t.co/Z5WJDVpG3N

[Dalius - Special Sits @InvestSpecial]

Sharing a list of 40 funds with excellent quarterly letters for idea generation.

1) @alluvialcapital (Value + Special sits)
2) @eriksen_tim (Value + Special sits)
3) @LaughingH20Cap (Value + Special sits)
4) @CapitalVoss (Value + Special sits)
5) @LuisVSanchez777 (Value + Special sits)
6) @JonCukierwar (Value)
7) @GreenhavenRoad (Value)
8) @hkuppy (Value + Special sits)
9) @GreystoneCap (Value + Special sits)
10) @HarvestLaneAM (Special sits)
11) @CaptnKirk13 (Value + Special sits)
12) @gbcvalue (Value + Special sits)
13) @CBfunds (Special sits on debt)
14) @Mc_Partnerships (Value + Special sits)
15) @aaronjsallen (Value)
16) @AtaiCapital (Value)
17) @UpslopeCapital (Value)
18) @East72Dynasty (Value)
19) @CurreenCR (Value)
20) @BumbershootHlds (Value + Special sits)

[Andre Robinson @AndreHyperD]

@hussam_lawen @Quality_stocksA I stumbled on Qualitau Ltd. And wondering if you could share any good write ups for this business. Unfortunately, there quarterly meets are not in English and I can't understand their plans. Looks like a good company on the Financials though.

[Mohnish Pabrai @MohnishPabrai]

https://t.co/BTne7H5zvw

[Andre Robinson @AndreHyperD]

@marketplunger1 Nicely done!

[Andre Robinson @AndreHyperD]

@BillBrewsterTBB Passing deutsch ovens that lead into MMA fights or battle royals; take your pick.

[Andre Robinson @AndreHyperD]

@QCompounding If only we knew which ones he's shorting and which one he's long.

[Andre Robinson @AndreHyperD]

@TSOH_Investing The market is setup where the active trader over time gives to the slow moving investor?

[Andre Robinson @AndreHyperD]

Environmental Remediation Market Worth $190.2 Billion by 2030 - Exclusive Report by Meticulous Research® https://t.co/wZRGMEt2oZ