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When Bibi and Donnie had a converation earlier this week (click)
 Of course, Donnie has his own "issues". Here´s a classic (click).
 Stephen Clapham is looking at the IPO opportunity (see article below). My 2 cents: At first sight, IPOs are risky: the seller knows the asset much better than you, prices are inflated, there´s no long history of data available, there´s no history of management statements (and the follow through) available, the numbers might be "optimized" for the big event (IPO), the deal might be badly managed by the banks, liquidity might be too low, etc, etc. But: the IPO also offers the most comprehensive pack of data (prospectus), among your peer investors everyone starts from scratch when learning about the company and most importantly: nobody knows what the right price is. In the aftermath of IPOs it often comes to huge dislocations, because of ownership changes, low liquidity, secondary placements, new and better information arriving and a better understanding of the true value of a company. Some recent examples in Germany: Ionos, Auto1 and Schott Pharma. The shares in those companies all had both >50% drawdowns and >50% rallies within the first 12-18months of being listed. I think it pays to do the work on an IPO, get an idea of what the company is worth, then wait for price dislocations to happen and capitalize: Ionos was available at EUR 18, then EUR 12, now EUR 40. Auto1 was available at EUR 53, then EUR 6, now EUR 25. Schott Pharma was available at EUR 41, then EUR 20, now EUR 29. 
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Silba has a good portrait of Nick Sleep (see article above). For all the newbies: here´s a link to his manifesto (click). It´s the single best thing you´ll ever read about investing and it will change your life.  Continental is being broken up. Some might say "finally". There could be a chance to buy the attractive tires business "on the cheap" (see article above) The Gorilla Game thinks that the "Beauty Flywheel" is broken. Traditional Beauty players have focussed on marketing and increasingly outsourced R&D. Also, they are getting squeezed from both sides: DTC newcomers (think Haily Bieber´s elf Beauty) and real Luxury brands (think LVMH). Best Learning: the role of "original Brand and Design Managers" (OBMs) like Cosmax and Korea Kolmar (see stock charts below) that act like "foundries" for the beauty complex. 
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The Bank For International Settlements (BIS) stated in a recent report that stablecoins like Tether and USDC fail the three main tests of money: they are vulnerable to criminal use, aren’t backed by a central authority, and can’t easily be turned into loans — the key purpose of money in generating economic growth. They are “unable to fulfill the no-questions-asked principle of bank-issued money,” BIS wrote. See article above.
Ben Thompson at Stratechery is checking in on the Big 5 and their AI progress (see article above) David Senra is looking at the legacy of Michele Ferrero and his chocolate empire (video below) |
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Odd Lots interview Washington Post reporter Eva Dou, the author of "House of Huawei: The Secret History of China's Most Powerful Company". Her book explains how the historical development of Huawei is basically synonymous with the rise of modern China. They discuss what the company does, how it became so strong, its links to the Chinese government, and how it emerged as a possible rival to Nvidia.
Absolutely How are you battling the heatwave (click) ? Enjoy the Weekend!
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