The way to think about business returns is as the cost of growth.
February 6, 2024
The way to think about business returns is as the cost of growth.
…and how to identify it in its most durable form.
On what makes a great insurance company, Fairfax’s historical transformations, investment slump, underwriting tailwind, hard vs soft markets, culture, incentives, run rate profits, and price-to-book.
On the elevator oligopoly, the golden service market, economics of density, working capital benefits, innovation, China, and smart elevators.
Deep research is important but so is studying the entire spectrum of stocks.
On Adobe’s history, SaaS transition, creative monopoly, increased competition, Figma acquisition, and valuation.
Apply B.F. Skinner’s work to market behavior and yourself.
Thoughts on Phil Fisher’s book.
On public tenders, company culture, European IT consulting markets, scale advantages, managing people, and M&A integration issues.
Read the full transcript of the 2022 Daily Journal annual meeting featuring Charlie Munger and Gerald Salzman.
On the affiliate model, sportsbook relationships, the history of Better Collective, acquisitive growth, the iGaming industry, regulatory opportunities, data advantages, and potential return.
Mental tripwires to your success in stock picking.
Marketers use it to trick you, negotiators use it to gain the upper hand, and investors fall prey to it.
On the payment ecosystem and its history, distributional strategies, the competitive positions of modern players like Stripe, Square, and Adyen, how Adyen is different from the two others, unified commerce, and a brief on the stock price.
Despite their simplicity, buybacks are poorly understood and vilified.
On how Topicus carries on Constellation’s ethos, incentive systems, and strategy, whether it’ll work, the company’s value drivers, capital and ownership structure, challenges, and some thoughts on FCF yield.
On Constellation’s trajectory as an HPC, the economics of a VMS, returns on capital, challenges in organic growth, the runway for M&A, the company’s incentive system, and prospects for the use of FCF.
How to reduce the rate of error in important decisions.
Like mental models guide comprehension, principles guide behavior.
On Disney’s acquisitive history and digital transformation, how a shift to DTC shifts the economics of the business, and how I would value the company with the subscription business at focus.
A strategy for flipping through those annual reports.
Two mental models that explain the nature of the stock market.
While commonly used in betting and finance, the Kelly criterion is poorly understood.
On China’s regulatory crackdowns, the history of Alibaba, the arms of the octopus, how Alibaba monetizes its ecosystem, the moat, how Alibaba could fail, how I would value the company, and a note on position sizing.
Learning accounting the right way.
Know the kind of game you’re playing before you start playing it.
Buffett predicts Munger would talk about Costco.
An e-mail exchange between Warren Buffett and Jeff Raikes on Microsoft in 1997 is filled with valuable lessons.
…and how they’re not.
How to calculate compound interest in your head.
Join 5,000+ investment professionals and curious stock pickers by subscribing to the newsletter.
© 2025 Sung Capital, all rights reserved. The content provided on the website is for informational purposes only, and investors should not construe any such information or other content as legal, tax, investment, financial, or other advice. Nothing contained constitute a solicitation, recommendation, endorsement, or offer by Sung Capital or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. See our terms, privacy policy, and disclaimer.
