Why Aggregators Fail

“Failure of business schools to study men like Singleton is a crime.” – Warren Buffet The first meaningful conglomerate boom occurred in 1960s. Low interest rates (highlighted below) made leveraged buyouts (LBO) easier; enabling managers of large companies to make a case for category-agnostic acquisitions to bolster their valuations. A conglomerate is typically a large…

How E-Commerce Brands Can Drive Working Capital Efficiency

Working capital (WC) is the lifeblood of e-commerce brands, and the need to manage WC effectively and efficiently ensures brands can meet their obligations, pay their bills on time, and continue investing in growth. E-comm brands have totally different WC challenges compared to other verticals (e.g. SaaS). You’re paying for products typically weeks in advance,…

History of Inflation

“There is no better teacher than history in determining the future… There are answers worth billions of dollars in $30 history book.” – Charlie Munger History doesn’t repeat. It rhymes. Dec 2022 CPI report came out last week. We saw headline inflation at 6.5% and core inflation at 5.7% (net of energy and food prices).…

Discounted Cash Flow

“It is an old joke that the stock market has predicted seven of the last two recessions. Markets are often wrong.” – George Soros The market is too optimistic. The Fed is too pessimistic. We’re living in a world where good news is bad news; at least when it comes to capital markets. Growth in…