Fizzy Water

The story behind National Beverage is an easy one. I first wrote about National Beverage in 2016 (see here).  You can see financials below:   2016 2018 Growth Revenue 705 975 38.00% Operating Income 93 204 119.00% Margin 13.19% 20.1%   National Beverage is a simple story.  National Beverage owns

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Burgers, Fries and Shakes

Shake Shack (“Shak”) is a burger joint that is much more than a burger joint. It’s tough to describe if you haven’t eaten there. At the end of 2018, Shak will have about 123 domestic (U.S.) company-owned locations and about 85 Licensed Shacks (the majority of the licensed locations are

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VRSN Follow-Up

VRSN reported their quarterly results last night with a brief 30 minute conference call (you could also read the transcript in about half that time).  The remarkable thing about VRSN is really how unremarkable it is. The business is highly focused on managing the .com and .net registry (hoping to

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Bad Blood and Schrödinger’s Cat

Bad Blood is a great book.  It’s a fast read, it’s interesting and you should read it.  I want to only discuss one aspect of investing with regards to my takeaways from this book. In November of 2006, Theranos raised money at a valuation of $165m.  Approximately 8 years later,

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The Other Side

“I never allow myself to have an opinion on anything that I don’t know the other side’s argument better than they do.”— Charlie Munger “We all are learning, modifying, or destroying ideas all the time. Rapid destruction of your ideas when the time is right is one of the most valuable qualities you can

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Bitcoin, Psychology and Munger

If you have been under a “financial news” rock for the past few months, I thought I would welcome you with a story you are likely to have missed…Bitcoin, or more broadly Cryptocurrencies.  I generally read about things that I find interesting or at least relevant to the modern finance

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CMG Update

CMG reported their most recent quarterly earnings a few weeks ago.  I wanted to update my last post on CMG with some additional thoughts regarding their numbers. CMG’s operating history shows one of two things.  Either CMG has created a superior model in what has typically been a fairly poor

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Redfin: Technology Company or Something Else

Redfin describes itself as a “technology-powered residential real estate brokerage.” From filings and transcripts: This ability to deliver better service at a lower fee is the fundamental source of our long-term competitive advantage and that advantage comes from technology. Our technology lets us meet homeowners and homebuyers without paying for

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Simple Businesses: Flooring Edition

In the near future, I would like to discuss my (and partially John’s) approach to filtering by using the S&P 500. One company I was researching as I was thinking about my filters was Floor and Decor (although it isn’t in the S&P 500). As a short introduction to my

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Long Lines,  Big Burrito,  Full Belly.  Chipotle. 

The beauty of Chipotle is the simplicity of the restaurant.  Let’s not complicate our analysis with anything more than a back of envelope sketching of its valuation. At roughly 2,350 locations, Chipotle is on track to do an average of $1.95m per location or approximately $4.6B per year. Sketching out

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