Snapchat and the Substitution Heuristic

We have a cognitive quirk. We have a bunch but let's focus on one. When faced with a hard or complex problem instead of answering it we swap it for an easier question to answer. We believe we have answered the hard question when in fact we answered a totally different question. This is the [...]

Splitting AbbVie to Unlock Value

AbbVie (ABBV) is a rare stock. AbbVie's yields almost 4%. Its current dividend yield is 3.87%. And unlike the other 4% yielders, it is not a slow growing utility, telecom, or cyclical car manufacturing business. AbbVie is a growing biotech company with a promising drug pipeline with even more potential growth. Why is a growth [...]

We own Hilton (HLT). We bought it for clients after it underwent its three-way spin-off into Hilton Grand Vacation (HGV), Park Hotels & Resorts (PK), and Hilton (HLT). Did we make a mistake? Maybe, according to this video. The video was uploaded on March 29, 2017, and uses financial data as of year end 2016. [...]

Yahoo! Finance conducted an interview with Warren Buffett, Ted Weschler, and Todd Combs. If you like to read all day and manage money, then Berkshire is the place to be. This is how Todd Comb's describes his daily routine. “I get in around 7 or 8, and I read until about 7 or 8 at [...]

What I Wish I Wrote ~ April 28, 2017

A collection of mostly finance related links that I wish I had the talent to create. @EconomPic live look at the upcoming tax debates on twitter pic.twitter.com/AvQzwOIkL6— Ben Carlson (@awealthofcs) April 27, 2017 An article went up on Value Investor's Club recommending a short position in Apple (AAPL). These are all the counterpoints to that [...]

ESPN made news today with the announcement that it will "layoff" 100 staff members. I've personally been of the opinion that ESPN has been bloated with on-air talent for a while. How many white bald former NFL QBs do you need on one show? Especially when you can't tell them apart? It was easy to [...]

Tren Griffin of 25iq put out a tweetstorm with some insight on why Procter & Gamble's (PG) high margined grooming business, Gillette, is getting nicked (pun's always intended) by new online competitors like Harry's and Dollar Shave CLub. In 2004 Gillette had 60% gross margins before being bought by P&G. That margin = the challenger's [...]

One of our concerns with Procter & Gamble, we still own it, is disruption by the shave clubs, Harry's and Dollar Shave Club. PG's latest quarterly earnings report did not belie our concerns. Organic sales were down 6%. The U.S. is the most profitable part of PG's grooming business and it lead the decline. From [...]