The Wirecard scandal has resulted in a couple of books already, most of them quite good. But the ultimate book is of course the one from FT reporter/investigator Dan McCrum who dedicated more or less 7 years of his career to this and significantly contributed to the ultimate revelation of this “House of Cards”.
Brad Feld thinks startups should prefer “clean” down rounds to crazy structures
A deep dive into the factors why Nuclear Power is so expensive
Despite some popular home runs, Biotech Stocks as a group have underperformed over the long term
The Value Shares blog likes Vopak (German)
Searching4Value likes Croatian Pharma stock Krka
Bill Gates has released his “5 books for the summer” reading list
TikTok seems to have become essential for Music labels
Disclaimer: This is not investment advice. PLEASE DO YOUR OWN RESEARCH !!!!
Inflation & Pricing power
One of the obvious strategies for for investors in an inflationary environment is to pick companies that have “Pricing power”. Pricing power means that companies should be able to raise prices at least as quickly as costs rise.
Now one could try to do some deep thinking if and how different business models react to inflation. As I am a more “hands on” guy, my solution is to look at actual numbers and then try to draw my conclusion.
For any company that is producing material goods, the best indicator for pricing power in my opinion is Gross profit, i.e. the difference between selling price of a product minus the direct costs to produce them.
A company with pricing power should keep the gross margin or ideally even improve gross margins in an inflationary environment.
value and opportunity 