GDS Investments

06/17/2022

“We made a decision to build to the high side to avoid constraining consumers and sellers in any way,”

This is why Amazon has been so successful for so long. Very few companies would accept this trade-off - lower profits today but a more enduring moat over the next decade.

Amid one of the worst stretches for financial performance in Amazon’s history, the new CEO is working to cut back the excesses of an e-commerce operation the company expanded at breakneck pace during much of the Covid-19 pandemic.

06/10/2022

Insightful look into Henry Ford's embracement of vertical integration and why today's supply chain may drift back to some of the early 20th century practices.

“He became more and more obsessed with controlling every aspect of his production process.”

The automobile pioneer believed short-term interests must not squeeze out investment in a business’ resilience, a lesson many companies have learned the hard way since 2020.

06/09/2022

Here is the highlight video (23 mins.) from yesterday's $SPOT Investor Day. Ambitious plans for sure, but I love that Daniel Ek has created a culture that thinks long-term. It's a win for users, creators, employees and shareholders when a long-term vision is part of the company's DNA.

Spotify CEO Daniel Ek, CFO Paul Vogel, and members of the Leadership Team host a series of presentations focused on progress the Company has made since its d...

05/31/2022

Watch this with particular emphasis on Gurley and Gerstner.

0:00 Bill Gurley & Brad Gerstner break down the state and historical significance of 2022's market downturn12:27 How VCs will handle capital commitments from...

05/31/2022

One of my favorite podcasts with the insightful Aswath Damodaran. Deep discussion on what matters in the inflation calculus, FANG stocks (he likes ex-NFLX) and other topics on investors minds.

Aswath Damodaran is a Professor of Finance. We cover why inflation is such a dominant force in today's market, the importance of narrative when valuing companies, and his contrarian thoughts on the future of ESG.

05/28/2022

“invert everything” and “protect my portfolio from me" - investors need to be more like Lyle Steelman, a trumpeter for the Cleveland Orchestra!

For some Main Street investors, this year’s decline doesn’t feel like a calamity. It feels like an opportunity.

05/28/2022

Tragic for sure, but a reminder that there is no such thing as a "blue-chip cryptocurrency".

A surgeon in Massachusetts can’t stop thinking about how he lost his family’s nest egg. People who put their money in TerraUSD thought it would be safe.

05/25/2022

Think this captures some of the emotion and short-term thinking in our financial markets. Rushing into a particular set of companies based on a single feature (e.g. dividends) is a losing strategy. My sense is that those companies being neglected for growing, reinvesting in its business and/or buying back undervalued stock are probably worth buying here.

Investors are rushing to companies promising regular payouts to shareholders, a sign of Wall Street’s hunger for cash in hand as the Federal Reserve raises interest rates and major stock indexes struggle.

05/23/2022

Very insightful look into "everyday" inflation using potato chips as an example. The problem runs much deeper than many understand - from cooking oil to fertilizer to storage costs.

Potatoes, cooking oil, gas for frying and packaging have all grown more expensive as the war in Ukraine contributes to a global energy shock and pushes up prices of agricultural commodities.

05/19/2022

Long overdue

The landmark agreements with U.S. Soccer will pay players on both national teams the same game bonuses and World Cup prize money.

05/19/2022

Target and Walmart earnings put inflation concerns on full display - higher fuel and shipping costs are hurting margins and the ability to reprice products higher is unknown. During periods of rising inflation, avoid companies with fixed cost structures and/or businesses that require on-going capital investment just to stay even with the competition.

05/13/2022

Interesting data point - 1/3 of all NASDAQ and almost 1/3 of NYSE listed stocks are at 52 week lows. Only happened 18 times in the last 40 years. +32% was median return one year later.

Fear is normal but don't let it lead to irrational decision-making.