Incremental Insights #74
The best of what I read, listened to, and watched during the week.
Tether Gets Junked by S&P
Stablecoins are dollar derivatives and stable coins like Tether are increasing their exposure to riskier assets.
We’re Buying Ferrari Group
Ferrari Group: Not the sports car, but the luxury logistics powerhouse. 100% client retention, 8% FCF yield, and a €100M+ cash fortress. Why switching costs create an unbeatable moat in high-end supply chains.
Inside Michael Mauboussin’s ROIC Framework (Every Investor Should Know)
“Not all growth creates value.”
Value is created when that growth generates a ROIC above a company’s weighted average cost of capital (WACC). How to use Mauboussin’s ROIC framework to find the companies that are growing and cresting value.
JP Morgan’s Playbook for a 10-15% Correction (or Worse)
You have to get past the inane banter at the beginning but it is a good interview with Michael Cembalest on his perspectives on the current state of the market and how he is recommending large institutional clients how to position their portfolios.