Incremental Insights #45
A weekly collection of mostly investing and business related content
Why Lyft’s Capital Allocation & Governance Issues Necessitate the Election of Two New, Experienced Board Members
Engine Capital is going activist on Lyft because of its poor capital allocation and lackluster governance. It contains some brutal takedowns.
While in theory Mr. Stephenson should be financially sophisticated as a current CFO, the unoptimized balance sheet and the excessive equity dilution has taken place under his watch. TSR under his watch: NEGATIVE 175%
Nelnet — Cash-Rich, Disciplined, Undervalued
Nelnet just received a $410M cash windfall (20% of market cap!) that Wall Street completely missed.
QXO | Brad Jacob's Next Empire Begins
Brad Jacobs, the mastermind behind 3 billion-dollar empires (55% to 115x returns), is targeting the $800B building products industry with $5B in cash and an $11B acquisition. Can he make this his 4th?
Never Sell Episode 5 - Cadence and Synopsys
Scuttleblurb and MBI Deep Dives coincidentally wrote about Cadence Design Systems and Synopsys (respectively), the two dominant EDA companies. In this episode, they explore the EDA industry's history, examine what makes these companies exceptional, and analyze potential risks as AI technology advances.
NFL Teams Know How To Draft - Why Don't They?
In honor of the recent NFL Draft, some of the math behind who and what position to draft and in which round to do so. Plus, why it is more valuable to trade back in the draft.