What I Wish I Wrote ~ June 30, 2017

Charlie Munger’s talk on the Psychology of Human Misjudgement via Marketfolly Checking in with ESPN, the current state of its business and its future. (Sports Business Daily) You probably hear a lot that Tesla is disrupting this and that business. But is Tesla really disrupting any business in the true Clayton Christensen definition? (Vox) How […]

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JP Morgan, Morgan Stanley, & Wells Fargo Capital Return Plans

One of our themes for investing in JP Morgan Chase (JPM), Wells Fargo (WFC), and Morgan Stanley (MS) is increased returns of capital to shareholders. We believed that all three had more than enough capital to pass the Federal Reserve’s stress tests and return a large portion of their excess capital back to shareholders. Yesterday all […]

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Valuing Starbucks with Economic Profit Models

[edit]: My original economic profit model had an error. It was overestimating future invested capital. I kept the original images of each economic profit model but added updated values below them. This also changes my conclusion about Starbucks being overvalued or not. If you only looked at the P/E ratio Starbucks (SBUX) looks expensive with […]

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Morgan Stanley & JP Morgan Expected To Boost Capital Return

One of the reasons we invested in JP Morgan Chase (JPM) and Morgan Stanley (MS) is our belief that they are over capitalized. Their excess capital will eventually be returned to shareholders through buybacks and dividend increases as they continue to pass the Federal Reserve’s Comprehensive Capital and Analysis and Review (CCAR). Goldman Sachs via […]

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