CEORater Portfolio Closing The Gap

CEORater Portfolio Closing The Gap

CEORater began an experiment several years ago whereby we built a concentrated “buy and hold” equal-weight portfolio consisting of quality Enterprise Software names that would be held for a minimum of five years. The benchmark is the S&P North American Expanded Technology Software Index (SPNASEUP). CEORater is closing the gap, up 8.3% Year-to-Date vs. 10.3% … Continue reading CEORater Portfolio Closing The Gap

Twitter’s New CEO: Parag Agrawal

Twitter’s New CEO: Parag Agrawal

Twitter named its Chief Technology Officer - Parag Agrawal - Chief Executive Officer effective immediately. Twitter co-founder Jack Dorsey stepped down from his CEO post and will remain on Twitter's Board. This change was long overdue in our view as Mr. Dorsey had simultaneously been CEO of two public companies - Twitter (TWTR) and Square … Continue reading Twitter’s New CEO: Parag Agrawal

“G” Is The Most Important Letter In “ESG”

“G” Is The Most Important Letter In “ESG”

We have stated and written on a number of occasions that Corporate Governance - the "G" in "ESG" - is far and away the most important element of that acronym. Weak corporate Boards fail to hold management teams accountable. Sometimes Boards are weak because members don't know the company they serve well and are therefore … Continue reading “G” Is The Most Important Letter In “ESG”

The Munger Theory of Value Investing

The Munger Theory of Value Investing

I subscribe to Charlie Munger's view concerning value investing. "Value" does not necessarily equate to a low P/E multiple. Value investing in Mr. Munger's view consists of finding companies that in the future are likely to be valued significantly higher than they are presently. Too often companies that are valued at deep discounts to the … Continue reading The Munger Theory of Value Investing

Vertically Integrated Auto OEMs

Vertically Integrated Auto OEMs

The Auto OEM of the future will be vertically integrated across traditional automobile components, batteries and alternative power sources, software and chips. BYD (tkr: BYDDY) is a prime example of a vertically integrated Auto OEM given its Automotive and Battery operating segments. Ford (tkr: F), today announced it is partnering with GlobalFoundries (tkr: GFS), to … Continue reading Vertically Integrated Auto OEMs

RPA M&A: SS&C and Blue Prism

RPA M&A: SS&C and Blue Prism

SS&C Technologies' (tkr: SSNC) preliminary approach about a potential offer for U.K.-based RPA ("Robotic Process Automation"), firm Blue Prism is detailed below. Read Blue Prism's deal press release HERE.SS&C's proposal values Blue Prism at approximately $1.6 billion. Blue Prism generated recurring revenue of approximately 154 million GBP in FY'20. Read Blue Prism's 1H 2021 investor … Continue reading RPA M&A: SS&C and Blue Prism

The Fed Will Likely Tighten Faster Than The Market Anticipates

The Fed Will Likely Tighten Faster Than The Market Anticipates

A 2004-2006 Fed Funds tightening period could be around the corner should the Fed truly want to curb inflation. The Fed is already late to the inflation game. QE should not exist. The Fed Funds Target Rate range ought to be above 0.00-0.25. Below we have plotted what the next two years could look like … Continue reading The Fed Will Likely Tighten Faster Than The Market Anticipates

Metaverse Plays

Metaverse Plays

The Metaverse is a fancy term for accessing online worlds via the Internet. Gaming environments are a prime example. Online meeting spaces (avatar meetings) are another example. We can imagine a world where buying a home or purchasing an automobile take place in a virtual environment. We believe that every Software company of size will … Continue reading Metaverse Plays

Inflation: A Visual Representation

Inflation: A Visual Representation

Inflation is the result when money supply growth outpaces an economy's ability to produce goods and services. We use M2 in the below chart to represent the money supply (the thin blue line). We use the The Producer Price Index (PPI) and Real GDP as productivity proxies. The PPI is measured by the thin red … Continue reading Inflation: A Visual Representation