Lazy Investor

Lazy Investor
Investing without working too hard
Created 01 Aug 2021
  • Revisiting Earnings Growth
    20 Aug 2021 • 5 min read
    In How to Value Stocks: A Defense of P/E Ratios and What Drives Earnings Growth, I assumed that the growth in earnings once a company reaches a steady state is the return on incremental equity multipl...
  • How to Calculate the Rate of Return on Stocks
    20 Aug 2021 • 7 min read
    On the face of it, this topic seems pretty basic. But I think calculating the rate of return on stocks is actually kind of nuanced. Here’s how to do it. In How to Value Stocks, I discussed how to esti...
  • Disruption, Zillow, and the Power of the Innovator’s Dilemma
    18 Aug 2021 • 5 min read
    In my post on disruption, I explained that disruption works because incumbents typically don’t want to divert a bunch of resources to go after the disruptive form factor, since the disruptive offering...
  • Disruption
    18 Aug 2021 • 1 min read • 1 0
    Disruption is probably the most misused business term that exists. Since it’s so often misused, this post attempts to concisely define it, provide some examples, and explain why it works. As you’ll se...
  • When Ad Prices Go Up
    13 Aug 2021 • 7 min read
    Let’s start with a theoretical framework. For simplification purposes, assume all all a company’s customers have the same lifetime value (LTV), equal to the present value of incremental profit they ge...
  • Free Cash Flow to Equity
    12 Aug 2021 • 3 min read
    In How to Value Stocks, I concluded: The value of a stock is the present value of future dividends. Some investors use free cash flow to equity as a proxy for dividends, but this method ignores the ef...
  • What Drives Earnings Growth
    10 Aug 2021 • 3 min read
    In my post on how to value stocks, I claimed that the growth in a company’s profits equals the company’s return on incremental equity investment multiplied by the percent of earnings that it reinvests...
  • How to Value Stocks: A Defense of P/E Ratios
    08 Aug 2021 • 7 min read
    Why buy a stock? For most people, it’s because you hope the price will go up. That’s, after all, how performance is measured -- marked to market. But what does buying a stock give you? It’s the right ...
  • Netflix and Gaming, Part 2: Can Netflix Compete in Mobile?
    05 Aug 2021 • 6 min read
    Recap My first substack post asked whether Netflix can disrupt gaming. The conclusion: yes, but to do so it needs to first establish a foothold among poorly served gamers or would-be gamers, particula...
  • Can Netflix Disrupt Gaming?
    04 Aug 2021 • 8 min read • 2 0
    Disruption Let’s start by defining disruption. I’m not using it in the popular way, but rather how it was defined decades ago by Clay Christensen. Disruption is when a company starts out by offering s...