Value map

Hedge fund for the MASSES 🌍I analyze companies and uncover hidden gems 💎 not investment advice.

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Under 2 minutes, why $HCC is one of the best? #ValueInvesting

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The easiest way to decide if management is decent is to make them prove it!

Great capital allocation, promises kept.

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@ArielEpstein @BillAckman With the success of your dating advice, start posting about eating healthier—you will change America! @BillAckman

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@dr_ericberg @tyromper One of the best post of today.
Great!

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@GuyTalksFinance If I was you I would promote my channel!@GuyTalksFinance

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@tyromper “New all day” is absolutely increasing your anxiety.

Imagine how much more it will increase if the host isn’t pretty.

Choose wisely!

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Growth and maintenance CapEx: how much for each?

We know $HCC is expanding operations with the new Blue Creek project.

Existing mines are operational, so they already split it for us!
#ValueInvesting

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@Codie_Sanchez So not for assets?

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@elonmusk Everybody has to do their job, including judges!

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Today it’s all about Owner Earnings.
I will show a real example of how to split growth and maintenance capex for our queen this week - $HCC.

From here, we’ll do a “back-of-the-napkin” calculation to get things started.

@grok, explain “back-of-the-napkin calculation”!

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the company must create at least $1 of market value over time.

If a company pours money into Growth Capex but ROIC declines – the cash should have been returned to investors.
Check the last 5 years: Did the increase in EPS justify the total Retained Earnings?

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Not all growth is good growth.

Most managers destroy value when they try to get bigger.

Buffett's Insight: Buffett is willing to retain earnings (rather than pay dividends) on one condition: For every $1 retained ..

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@BrianFeroldi If it’s a loan on a car you just want for fun, then no.
If it’s a loan on a car you must have to get to work, it’s okay.

Money in or money out?

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@Budgetdog_ Genetics are harder to get than a mindset??

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@Codie_Sanchez So take a picture, like Jeff Bezos’s garage

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@MarketPalmer_ But this ISNT bear market
Wake upppp

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@SpaceX @elonmusk @Starlink Daddy Falcon @SpaceX

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@tyromper Just focus on what you can control

Keep your mind clear and ready to think about your next topping on the hamburger 🍔

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the business dies.
Many investors see high capital expenditures and think "expansion," when the company is actually just running in place to avoid collapse.
CTA: Search the conference call transcripts – does management provide a specific number for Maintenance #Capex?

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The Maintenance Capex Trap

Growth? First, prove you are surviving.

Buffett's Insight: The most critical number missing from GAAP reports is the split between Maintenance Capex and Growth Capex.
Maintenance is an existential cost. If you don't spend it…

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@farzyness Their integration is amazing, hard to beat.