Incremental Insights #64
The best financial content I read, listened to, and watched during the week
Oracle's Half-Trillion Gambit
Oracle's $300B gamble with OpenAI isn't just about cloud dominance, it's financial engineering at its finest.
By shocking the market with half-trillion dollar projections, they might’ve engineered a way to fund the massive capex needed to build an AWS sized business.
Aerospace: After A Century of Growth; A Bright Future Ahead
The aerospace industry combines tobacco-like pricing power with tech-level growth potential.
With 80% of the world's population yet to fly and production bottlenecks extending aircraft lifespans, aerospace suppliers enjoy remarkable longevity, regulatory protection, and high returns.
Total Concentration
Diversification isn't "di-worsification".
Despite claims from the concentrated investing crowd, the data is clear: hyper-concentrated portfolios (5-10 stocks) face 2x the shortfall risk and trail diversified portfolios by 1-2% annually.
Volatility drag eats returns faster than conviction creates them.
The Rise of Financialisation in the Sports Industry
The sports industry is undergoing a financial revolution as PE firms transform teams from passion projects into sophisticated asset classes.
The Cardboard Boxapocalypse and the State of the US Economy
Everything you need to know about boxes: how they’re made, the biggest players, and what their sales decline means for the US economy and its major retailers.