student analyst

[student analyst @marketseco]

@Bkclaims All the best!

[student analyst @marketseco]

@brettgardner_10 🙏🙏

[Brett G @brettgardner_10]

Li Lu interview is now on video! https://t.co/XAtoUxYlIH

[student analyst @marketseco]

@scottfelsenthal 100%

[Jack Farley @JackFarley96]

If you want to hire a ridiculously talented investment analyst you should talk to @jdmsparky

This young man has saved (made) me a LOT in markets and he would be a wonderful addition to your firm

[student analyst @marketseco]

@scottfelsenthal @shaneparrish Thanks for flagging, going to listen

[Scott @scottfelsenthal]

Nike's loyalty program rewards you for buying shoes.

It should reward you for wearing them out.

The case for buying @Strava and rewarding sweat, not spending.

Hey $NKE ...just do it.

My thoughts below: https://t.co/Dx7VhEZ0Ul

[Bill Gross @real_bill_gross]

A few bonus investment ideas on my website to accompany my new Financial Times column. Yes, even a Pimco fund, Pimco PDI — Dynamic Income Fund.
https://t.co/BRBtFR667z

[student analyst @marketseco]

@Inves2grow Awesome 👌

[Scott @scottfelsenthal]

Dear X algo,

Big job. You're in charge of who ends up in front of me.

I'm not asking for followers. I'm asking for people I want to be friends with for life. You’ve delivered some amazing ones already, and I want even more.

New connections. New networks. Real ones.

I’m counting on you!

💙

[Audit The Herd @AuditTheHerd]

Accounting 101: how capex can hide the AI build out

If an expense has future economic benefit, it does not hit the income statement. It goes on the balance sheet as an asset. You debit the asset and credit cash. At the moment of purchase the impact to EPS is zero.

That cost is recognized later. Either systematically through depreciation or suddenly through impairment. $IREN writing down its bitcoin mining fleet is an example of the second case. If an expense has no future benefit, like maintenance, salaries, or R&D under US GAAP, it is expensed immediately. You debit expense and credit cash and EPS takes the full hit that period.

That difference creates the current illusion.

Two companies can burn ten billion dollars in cash this year and look completely different. The first spends it on one hundred thousand GPUs. Net income is unchanged because it simply swapped one asset for another. The cost will appear as two to three billion per year in depreciation for the next three to five years. The second spends it on AI research talent. Net income is negative ten billion immediately. The cash outflow was identical but the first looks like a compounding machine and the second looks unprofitable.

This is what most retail investors on X do not understand.

First they equate earnings with reality. They see EPS hold flat while capex triples and conclude margins are intact. They are not. The cost has been deferred not eliminated. Free cash flow is already showing the truth and earnings will show it later.

Second they ignore useful life assumptions. Management decides if a GPU lasts three years or six. The longer the assumption the smaller the annual depreciation and the higher current EPS appears. When obsolescence hits, the difference is caught up in a single impairment. The loss was always there but it was just classified as an asset.

Third is deferred revenue. A lot of these contracts in the AI buildout are prepaid capacity reservations. A customer pays cash today for compute they will use over the next three years. That cash is not revenue. You debit cash and credit deferred revenue which is a liability. It is an obligation to deliver future service. It only becomes revenue later as you deliver the compute. You debit deferred revenue and credit revenue over time.

Retail sees the cash come in and assumes the business model is validated and cash generative. What they miss is that the liability locks you into delivering that compute at yesterdays price with tomorrows cost structure. You have already spent the cash on GPUs that are depreciating and will be obsolete. If power costs rise or utilization drops or the customer does not renew, that deferred revenue balance runs off and there is nothing behind it. It made cash flow look great on day one while creating a three year obligation to provide a service that may end up unprofitable.

TLDR: The build out is not free. The income statement just has not received the invoice yet and the balance sheet is holding both sides of the trade until it does.

[Brett G @brettgardner_10]

Also, @NFX has a great masterclass on network effects, hosted by @JamesCurrier: https://t.co/kMv5HozInz

And manual: https://t.co/NF4eVnct2G

[student analyst @marketseco]

@brettgardner_10 @NFX @JamesCurrier Thanks for sharing 👍

[student analyst @marketseco]

@scottfelsenthal 100%

[Brett Caughran @FundamentEdge]

Fundamental Edge offers a free analyst training program to undergraduate investments clubs called the Fundamental Edge Investment Club (FExIC), led by Andrew Carr.

We observed that each undergraduate investment club was building their own educational curriculum for fundamental analysis, so last year we built a ~12 hour subset of curriculum geared towards the undergraduate learner to serve as a turnkey, practitioner-built educational curriculum for clubs.

Last year, we supported over 60 investment clubs globally giving FExIC access to thousands of undergraduate students.

As school ramps back up the fall, we are hosting an information session next Friday the 28th to refresh, renew and grow our club partnerships for the 26/27 academic year.

If you are an undergraduate club leader or faculty advisor, please join us to learn more about this program. Link in replies to original tweet.

Brett

[Meb Faber @MebFaber]

If you run a charity/library/museum focused on financial literacy and want us to donate some free books please reach out anytime!

https://t.co/mnuT22Djxw

[Steven Brunton @eigensteve]

Free PDF of my new Optimization book:
https://t.co/2QQMQMJqr2

If you like it, check it out on Amazon or at Cambridge University Press!

Please leave a review and email me with any typos/corrections.

[student analyst @marketseco]

@JeremyDSchwartz 100%

[Thomas Braziel @Bkclaims]

CoinKite / Coldcard claimants - I think we may have finally hit pay dirt.

After speaking with a number of lawyers and firms, we believe we’ve found the right Canadian team to organize victims and pursue a commercial litigation action against CoinKite.

The lead lawyer is the head of the blockchain/digital assets practice at a highly regarded Toronto law firm and also chairs its commercial litigation practice. The current plan is to determine the size of the claimant group, organize everyone, and then propose a fee structure for moving forward.

To be crystal clear: 117 Partners is doing this entirely pro bono. We are not acting as counsel, litigation advisers, brokers, or anything else, and we are not seeking compensation. We’re simply trying to help victims organize and get in front of capable Canadian counsel.

If you suffered a loss connected to the Coldcard issue, please fill out the form below. We’ll collect the information and, with your permission, pass it along so the law firm can contact you directly.

https://t.co/50u6vlwgTm

Please share with anyone affected.