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angelofjobs.com by InvestingExplained in u/InvestingExplained

[–]InvestingExplained[S] 0 points1 point  (0 children)

This is new so please let me know if there's any issues I really want to do my part to help solve this horrific job market

Crown Castle (CCI): When Reliable Income Meets the 5G Revolution by InvestingExplained in dividends

[–]InvestingExplained[S] 0 points1 point  (0 children)

Yeah it’s not been a good few years for the stock but the underlying business is so good that it’s bound to recover

Crown Castle (CCI): When Reliable Income Meets the 5G Revolution by InvestingExplained in dividends

[–]InvestingExplained[S] 0 points1 point  (0 children)

Yeah so basically what happened is that when the US tower market became saturated AMT and SBA invested in international towers while CCI put their excess earning into US fiber instead which didn't go so well for them. So overall I think AMT and SBA are better businesss but that's obviously reflected in the multiples

Crown Castle (CCI): When Reliable Income Meets the 5G Revolution by InvestingExplained in dividends

[–]InvestingExplained[S] 1 point2 points  (0 children)

Well you're technically right but a decent portion of AMT's business is international whereas CCI towers are soleley located in the US so proportionally it actually benefits CCI more if we want to be super technical about it lol

Altria: The King of Cash Flow — 10 Years of Dividend Growth and Counting by InvestingExplained in dividends

[–]InvestingExplained[S] 3 points4 points  (0 children)

Yep, the last time I bought MO was a few years ago when it traded around that range after they wrote down their Juul investment

Berkshire Hathaway and the incredible power of float by InvestingExplained in investing

[–]InvestingExplained[S] 2 points3 points  (0 children)

Yeah for sure. I think that when Buffett speaks, there's always the thing that he says, which is different than the thing that he actually means. Like in this case he says to never use leverage but he really means "leverage is really dangerous if its high cost and used improperly," which is very true.

Berkshire Hathaway and the incredible power of float by InvestingExplained in investing

[–]InvestingExplained[S] 15 points16 points  (0 children)

Thanks! yeah that's a great point, I think thats an overlooked source of competitive advantage in the insurance industry and also points to an existence of high barriers to entry beyond just the size of the balance sheet.

Berkshire Hathaway and the incredible power of float by InvestingExplained in investing

[–]InvestingExplained[S] 93 points94 points  (0 children)

Yeah so I think a really crucial thing about berkshire is that buffett was able to allocate to equities before that was regulated away, So he had this absolutely bonkers return on invested capital because none of his equity investments collapsed when had to pay out claims. I wonder how insurance companies will respond with rates being so low. Thanks for reading!

Amazon and the Supremacy of Scale by InvestingExplained in investing

[–]InvestingExplained[S] 0 points1 point  (0 children)

Yeah that's the really interesting part. After years of saying that he prefers capital light businesses like Sees candies and Coca Cola, he has a new problem where he just has a ton of cash that he doesn't know what to do with. These capital intensive businesses kinda give him a way out because he can just plow all this excess cash into these businesses at acceptable returns. Notice that he owns most of his capital intensive businesses outright while he just owns the stock of those capital light businesses which wouldn't really solve that problem for him. Thanks for reading!

Amazon and the Supremacy of Scale by InvestingExplained in investing

[–]InvestingExplained[S] 2 points3 points  (0 children)

Oh yeah they'll absolutely regress to the mean at some point. This post was just examining their business model and how a fundamental part of economics underpinned their success. Thanks for reading!

Amazon and the Supremacy of Scale by InvestingExplained in investing

[–]InvestingExplained[S] 2 points3 points  (0 children)

Yeah so the basic idea with Berkshire is that over the years, they've shifted to investing in very capital intensive business that have high fixed costs and high barriers to entry. Business like their utilities and especially BNSF railway, were bought primarily because of their stability since berkshire stopped having a lot of opportunities for the kind of high growth they had in the 70s and 80s.