What we can learn about inflation from a humble Chocolate Candy?

We are going through a period of high inflation; this is something we have not seen in decades. What are the characteristics of businesses that are more resistant to inflation? Here is a list of the characteristics: Companies that can raise prices Low capital intensity High Gross Profit margin Companies that can Raise prices Companies … Read more

Bandung Accounting

This week, we touch on intangible investments. Bandung is a traditional drink in SouthEast Asia made from rose syrup and sweetened soy milk. The following case study compares the challenges of measuring profit between our humble Bandung stand against a newer, service type business, say, technology.     For our Bandung stand, there are 2 … Read more

Investment Moats

We met Pat Dorsey in Singapore during pre-covid days when he publicized his book– The five rules for successful stock investing. We find a lot of common ground with Mr Dorsey’s thoughts and we’d like to share some of the learnings that we picked up. Moats refer to entry barriers or a sustainable competitive advantage … Read more

Forget Growth vs. Value – Stick to Quality

There has always been a debate on growth versus value stocks. Both of these broad classes of stocks have taken turns to outdo each other over various periods of time. Why not focus on quality instead of trying to time growth versus value? Quality stocks have strong balance sheets, high returns of invested capital, and … Read more

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