Uncover potential new investments and learn about financial markets on the Chit Chat Money podcast. Our flagship show releases two episodes a week covering individual stocks, one with a guest and one without. We periodically publish seasons of a History of Financial Markets, which you can listen to here. The show notes for each episode are published on this website, which you can find below.

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Are Subscription Businesses at Risk in a High Inflation Environment?

People are worried about inflation. You can go on CNBC, Bloomberg, or the WSJ and every day there are articles with headlines like this one: “As long-term Treasury yields rise, investor Peter Boockvar warns inflation would spark the ‘market’s worst nightmare’“ The headline is clickbait (and just a tad bit of fear-mongering), but it is telling the truth: investors are worried about inflation. Sure, some have been worried and wrong about it since 2009, but this time it might be

Thursday Deep Dive: Fiverr

Watch on YouTube Listen on Spotify *Follow Ian here. This week for our Deep Dive, Ian, Ryan, and I discussed Fiverr. The company is based in Israel and is an online marketplace that connects freelancers to potential clients. It is called Fiverr (pronounced “Five-er”) because the original idea was to get a service for as little as five dollars. Using Fiverr, independent developers, designers, and other remote workers post their qualifications and what jobs they are looking for

Episode 88: Talking Software with Kermit Capital

In episode 88 of Chit Chat Money, we talked with Kermit Capital, a data analyst and investor we know from Twitter. Kermit has worked at numerous large companies and brought some fantastic insights into the software industry. After talking about his overall investment strategy, the three of us discussed Alteryx and Slack at length. I learned a ton from this chat and think you will too. YouTube Link (Interview is audio-only) Spotify Link Screenshot Summary Brett’s news story: W

Thursday Deep Dive: Unity

Watch on YouTube Listen on Spotify This week, Ryan, Ian, and I discussed Unity. Unity, from a thousand-foot view, enables creators to bring things to life using 3D technology. Through their “create” and “operate” business lines they enable software developers of all sizes to more easily build and then monetize interactive content. The company got its start in gaming with the Unity engine but has since expanded to engineering, construction, design, even filmmakers use the crea

Robinhood has Major Problems. Can They be Fixed?

Robinhood’s slogan is “Investing for Everyone.” I have a revision that actually fits their business strategy: “Robinhood: Gambling for Everyone.” The company has turned investing, a way to build wealth through the power of compound interest, into a gamified app that treats the market as a virtual casino. Users are nudged to act irrationally through the same psychological tricks social media companies implement to keep us glued to our devices. Trust me when I say this is not g

Fundamental Analysis of Stitch Fix

Watch on YouTube Listen on Spotify On this Sunday’s Fundamental Analysis show we discussed Stitch Fix. Here is a screenshot summary of the episode: What is Stitch Fix? An online styling service that combines algorithms with a human touch to “style” clothes for its customers. When were they founded? In 2011 by Katrina Lake. Basic Valuation: EV of $2.6 billion, gross margin 44%, current ratio 2.2 Latest Earnings: Net loss of $44.5 million, revenue growth of 10.6%. Our Future Gr

Own Companies That Feel Inevitable

I saw a tweet the other day that said “invest in companies that feel inevitable.” The author is slipping my mind, but whoever it was, thank you, but I have an addendum to improve it: “Invest in companies that feel inevitable but are misunderstood by the market” “Inevitable” companies (or, maybe, Thano’s companies?) have historically treated investors kindly if bought at the right price. But what do I mean by an inevitable company that is misunderstood? That’s a tough question

What is Spotify’s Endgame?

Big news out of Sweden this week. Spotify, everyone’s favorite audio streamer, has gotten exclusive rights to the number one podcast in the world, the Joe Rogan Experience (JRE). This is a huge deal. Not just for Rogan, who will likely net over 100 million on the deal (exact numbers are not public), but for Spotify’s long-term ambitions. CEO Daniel Ek started talking in 2019 about the company’s strategy outside of music – “owning the ear,” as he has called it – but nobody tho

Why My Portfolio Was Built for the Pandemic

I’ve said it before, but my portfolio was built for the pandemic. For whatever reason, the businesses I like to invest in are doing well in these volatile times. But what has made these stocks strong, while others have suffered? Was it just luck, or was there skill on my part? I’d like to think it was a little bit of both, but who knows, introspection is tough. I didn’t position my portfolio for a pandemic-induced recession (if someone told you they did, they are probably lyi

Why I Sold My Shares of Disney

I used to be a big fan of Disney stock. I thought because they had a tremendous moat and little-to-no competition that they would be a market outperformer. The “monopoly on happiness” as people like to say. But when the facts change you have to allow your opinions to change with it, and the pandemic has changed a lot about Disney’s business. In this post, I’ll go through Disney’s four business segments (Media, Parks and Products, Studio, and Direct-To-Consumer) and analyze ho

Shopify Has Gotten Ridiculous

I sent out this tweet Friday morning: “$SHOP now with an EV/sales of 36, meaning like 5 years of 50% growth is already priced in. Why would anyone hold shares here?” $SHOP now with an EV/sales of 36, meaning like 5 years of 50% growth is already priced in. Why would anyone hold shares here? https://t.co/QRFEV8BGfP — Brett Schafer (@CCM_Brett) April 17, 2020 I expected some interesting responses, both bullish and bearish, to this question. What I did not expect was an onslaug

Why I’m Not Selling My Shares of Teladoc

I got lucky. Heading into this crisis, 5% of my portfolio was in one of the few companies that would benefit from a pandemic: Teladoc Health (ticker: TDOC). The stock is up 71% in the past month due to a huge increase in demand for virtual healthcare, and it has officially become one of the “hot” stocks talked about on CNBC. I didn’t buy shares for either of those reasons, but hey, I don’t mind the returns. (Twitter thread on Teladoc’s conference call) Teladoc’s business has

The Too Hard Pile

“Charlie says we have three boxes: “In,” “Out” and “Too hard.” You don’t have to do everything well. At the Olympics, if you run the 100 meters well, you don’t have to do the shot put…” – Warren Buffett Investing in individual companies is easy to do but hard to be good at. Online brokerages with zero commissions have made it so you can buy stocks at the click of a button. But it doesn’t guarantee you will make money doing it. Statistically, very few investors will outperform

Why I Sold My Shares of JD.com

“Only when the tide goes out do you discover who has been swimming naked” – Warren Buffett. Buffett likely wasn’t the first person to ever say something like this (as with all vague quotes), but the meaning holds true nonetheless. What he is eloquently saying is, that, in financial markets, when shit hits the fan, you realize who has just been bullshitting this entire time. At this point in the cycle, those bullshitters reside in China. Last week, Luckin Coffee, one of the ho

Revolve: The New Macy’s

We all know traditional retail is dying. Well, specifically, traditional department stores won’t be around much longer. Macy’s, JC Penny, even Nordstrom’s. They’re all dead stocks trading. They didn’t evolve for the digital age and are now left with giant empty stores in giant empty malls across America. But just because these department stores are going out of business doesn’t mean people are going to stop shopping for clothes. Yes, in 2020 there will be a slowdown in appare

Five Stocks I’m Looking at During this Bear Market

The last two weeks have been downright absurd. People are (and probably rightfully) panicking and reacting in extreme ways to this pandemic. It has everyone worried because we don’t know what the next few weeks will hold. Nobody likes uncertainty. The market has priced in a lot of this fear/economic slowdown, and rather quickly. In fact, this is the fastest we’ve gotten to a bear market in recorded history: That’s one scary chart. It also does not tell us where stock prices w

CCM Episode #74: Interview With Arif Karim

This week Ryan talked with Arif Karim in a long-ranging interview covering his life and investing in Netflix, Charles Schwab, and Ferrari. Arif works at Ensemble Capital and was a great interview. We appreciate him coming on the show and hope he can come back in the future. Other Segments this Week: Dorsey Part II Oil talk Hot water and FMK Listen to the full show: Spotify Apple Podcasts Google Podcasts https://open.spotify.com/episode/4zkpKpOji0jXPolLJ2yTMJ #Stocks #ArifKari

Volatility is Your Friend if You Dollar-Cost-Average

Markets are in a bit of a panic right now. Supply chains and the travel industry are being thrown into disarray with this COVID-19 epidemic, and likely will continue to do so for the next few months (and possibly longer). A recession, or at least a big slowdown, might be in the cards. As of this writing, SPY (the largest ETF that tracks the S&P 500) is down over 11% in the last month while the VIX (volatility index) has skyrocketed. 11% is not an extraordinary drawdown. It ma

Three Downtrodden Stocks Poised for a Turnaround

Classic value is not what I typically invest in. My bread and butter, or really, what I think I have an edge in, are growth names that I can hold for a long time period. These include stocks like Square, Spotify, and Yext, companies with rapid sales growth but low-profit margins. I like them because I think they can be highly profitable in the future, not for the cash they bring in now. However, I have found a few names (possibly driven by the fact my portfolio sits at an ave

Fundamental Analysis of Sprouts Farmers Market

On the latest Fundamental Analysis Show we discussed Sprouts Farmers Market, a low-cost health-conscious grocer. Highlights from the Show: EV/FCF of 21 Revenue growth of 8% 340 total stores $2 billion market cap Listen to the full show: Spotify Apple Podcasts Google Podcasts https://open.spotify.com/episode/1r3UNN03OnkzHvsAzw0Zot #SFM #SproutsFarmersMarket #Stocks #Investing #Podcast #FundamentalAnalysis #Finance

 

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