What do Aristotle, Charles Munger, and Thomas Edison have in common?
They all use something called First Principles to simplify complex problems. We use them for analyzing private investment opportunities. You might be surprised at how simple, yet effective, it can be. Investment analysis can be highly challenging. Each Issuer of...
Provide a Solution (1st principles of investing)
To provide value (and generate income as an individual or a business), you need to solve a problem for someone. It’s actually why we get out of bed every day and go to work. If a company you’re looking to invest in doesn’t do the same, it’s likely that company...
Debt Security Basics
Some investors react with concern when a company pledges its assets as collateral. If the company can’t rely on its cash flow to get bank financing, they think the company must be in danger. ”Asset-based” financing (or ABL) to these folks suggests a company is...
