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Antifragility and Value Investing – Part 2

Path dependency is a very important concept. It’s something we constantly think about, and thus, we’ll take a small detour to explore it. In addition to our traditional quality analysis, which falls into three buckets (business, balance sheet, and management), we also look at companies through the slightly different lens of fragility. We owe our […]

Antifragility and Value Investing – Part 1

Today I am going to do something we rarely do. I will share a large excerpt from IMA’s last quarterly letter to clients. Our quarterly letters are somewhat unconventional in that they provide an in-depth look at our investment process and explain in great detail every major decision that went into each client’s portfolio during the quarter. We are somewhat embarrassed […]

Cryptocurrencies Are Just Beanie Babies

If you invested in the markets circa 1999, it is hard to observe the Bitcoin mania and not experience the feeling that you’ve seen this movie before and know how it will end – in losses and tears. The internet was a great idea that convinced a lot of great minds to invest capital and […]

Uninvestable Tesla

Tesla is an uninvestable stock for me, not just because of its high valuation but also because it fails our fairly basic quality test, which I shamelessly borrowed from Warren Buffett: Would I still buy this stock if right after the purchase the stock market were to close for ten years? If you are a big Tesla […]

These Clues Tell You If A Company Is Making A Dumb Acquisition

As a shareholder, you do well to place more emphasis on risk than on reward. Corporate management usually does the opposite, and this is why most large acquisitions fail. In fact, I assume from the start that an acquisition will fail — or at least will turn out not nearly as profitable as the picture […]

The Double Trap For Tesla Investors Predicting The Future

The iPhone was an enormous gamble, as its pushed the limits of then-available technology – the microprocessor, screen, battery, and wireless capability were beyond what seemed possible in 2007. Undoubtably, if Apple hadn’t created the iPhone, someone else would have created a similar device later. But when? There is no way to know, but the […]

Bitcoin – Millennials Fake Gold

I’ve been asked about Bitcoin a lot lately. I’ haven’t written anything about it because I find myself in an uncomfortable place in agreeing with the mainstream media: It’s a bubble. Bitcoin started out as what I’d call “millennial gold” – the young (digital) generation looked at it as their gold substitute. Bitcoin is really […]

Apple – Not Saying Goodbye

I’ve written more articles about Apple than any other company we’ve ever owned. If I were to lie on Dr. Freud’s couch, then you’d find there were two Vitaliys writing these articles. First, there was Vitaliy the contrarian. Despite Apple’s ginormous size and the several dozen Wall Street analysts following the company, I felt it […]

Now Apple must show what’s next after iPhone X

The iPhone X is likely to be a phenomenal success for Apple. But its success will not be driven by anything new that the new phone packs inside. Instead, its success will be based on the phone’s screen size. Essentially, iPhone X provides the same screen real-estate as an iPhone Plus, but with the sleeker […]

Here’s How Your Investments Can Survive a World of Trouble

Writing about the future of investing in the current global economic climate is an easy way to get depressed. After all, Europe seems on the verge of disintegration; China risks a hard crash-landing; Japan’s debt-bubble could burst at any moment, and emerging economies are too closely linked to China’s fate. Meanwhile in the U.S., GDP […]