Weekly Kaizen – September 22nd – The Repo market, VC’s and Slack VS Microsoft

The Repo market, one of the hot topics of the past week, what is it and do we need to worry? We will look at different view points. Further in this Weekly Kaizen, another great analysis from Aswath Damodaran on VC’s role in start’up funding and valuation. 

Finally, Scott Galloway’s video and great take on the challenges that Slack faces fighting of Microsoft. 

Have a great week ahead! 


The Repo market 

The Repo market… The FED had to step in 4 days this week due to a shortage in USD in the overnight lending market. The last time the FED had to step in was after Lehman Brothers collapsed, do we need to worry? 

What do VCs prize and price? Lessons from Peloton, Uber and WeWork IPOs

Once again, another great analysis and video upload from Aswath Damodaran.

Slack VS Microsoft

Is the market overreacting with the recent slump in Slack’s share price or is there some merit in their anxiety in Slack’s growth prospect?

Scott Galloway’s short and still very detailed analysis below:

Book Recommendation: 

Former Secretary of State, Timothy Geithner, account on the financial crisis in 2007 and 2008. Recommend reading if you are looking to learn more on the FED’s, Treasury and banks role. Read (listen) for free on Audible or order online Stress Test: Reflections on Financial Crises: 

 

Further Reading:

 

Weekly Kaizen – September 15th – Porsche vs Tesla & valuing Growth companies.

It took Porsche almost 5 years to release their first fully electric sports car after their announcement back in 2015.  Is it enough to take on Tesla? No, I don’t think so. It will mainly appeal to current Porsche owners who are looking to get a fully electric car. 

Not a single day goes by without a new WeWork article, and after this weeks news that they are going to half their IPO valuation (still not enough) an analysis by Aswath Damodaran, NYU Finance Professor, and his process on valuing growth.

Don’t forget to check the links in the Further reading section. 

Have a great week ahead! 


Porsche vs Tesla

Last week Porsche released their new fully electric car, the Taycan. It was first unveiled at the 2015 Frankfurt Motor Show,  does it have what it takes to take on Tesla?

Aswath Damodaran –  WeWork & Growth

More on WeWork, this time from Aswath Damodaran analysis on his blog and YouTube channel, interesting slides are slide 20 on growth and margin expectations (24min) and slide 23 (26min) The Runaway story. 

Slides: http://www.stern.nyu.edu/~adamodar/pd… Blog Post: https://bit.ly/2lHFlVY

Pitchbook published an article on WeWork’s acquisitions (20+) over the last 4 years.

Growth

Growth is one of the main narratives and drivers for valuations at startups/ Unicorn’s. How do you determine a reasonable growth rate and deal with negative earnings?Aswath on growth: http://people.stern.nyu.edu/adamodar/podcasts/valfall16/valsession9.pdf

Further Reading:

Weekly Kaizen – September 8th – What is a tech company, Argentina & Michael Burry


Another week another S1 filling from a ‘Tech company’ that is looking to raise capital at a tech sector valuation for their upcoming IPO, is this just? Ben Thomson posted a great article on what a Tech company is.

Furthermore a deeper look into Argentina which once again is restructuring it’s debt, and lastly one of the best known investors, Michael Burry, on two of his long bet’s and his worries on passive investing.

What is a Tech Company?

Following the post from two weeks ago from Ben Thompson’s view on WeWork and Peloton’s  upcoming IPOwhat is a Tech company. 

Argentina’s debt:

Argentina’s has already defaulted  8th default times and twice in the last 20 years, this week President Mauricio started with  a debt restructuring  plan(Financial Times)  It’s a pity to see a country which was once one of the world wealthiest struggle with corruption and poor governance from current and past governments. 

FT video: Argentina prepares next steps to tackle debt crisis

Michael Burry’s letter’s:

Lot’s of articles this week on Michael Burry:

Recommended: Read The Big Short by Michael Lewis or watch the movie

Further Reading: