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Boris Marjanovic

 
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  • Update: Amazon Enters Another Low Margin Business [View article]
    wdchil,

    Wal-Mart and Costco have thin margins... does this mean they have no competitive advantages? Margins depend on the industry the company operates in. Retail is a low margin industry, which is why Amazon (a company with a huge competitive advantage) has low margins.
    Jul 18 04:03 PM | Likes Like |Link to Comment
  • Update: Amazon Enters Another Low Margin Business [View article]
    " I am skeptical as Amazon has yet to establish a competitive advantage in any specific industry."

    Amazon has a competitive advantage in almost every industry it has entered. Take AWS (Amazon Web Services) for example. AWS gives Amazon a huge advantage in the cloud computing space because AWS possess more than five times the computing capacity in use than the next 14 largest providers combined. In fact, AWS is the preferred name for hundreds of thousands of businesses around the world looking to reduce information technology expenditures.

    Saying that Amazon "has no competitive advantage in any industry it has entered" just shows that you know very little about this company.
    Jul 18 10:32 AM | 7 Likes Like |Link to Comment
  • Ignore The Bears And Buy Amazon [View article]
    "What is AMZN's advantage?"

    Over 244 million customers buy things through its website, that's Amazon's advantage. Since all the customers are there, the sellers are there too (nearly 3 million of them). The larger Amazon becomes the stronger its network effect becomes. This is the same advantage Google has. It's extremely difficult to compete against companies like this.
    Jul 17 05:18 PM | Likes Like |Link to Comment
  • Ignore The Bears And Buy Amazon [View article]
    thotdoc,

    It is for a company like Amazon, which will continue growing 20%+ for at least another five years.
    Jul 17 10:39 AM | 1 Like Like |Link to Comment
  • Google Vs. Baidu: The Search For The Best Investment [View article]
    Excellent article!
    Jul 11 09:36 PM | 1 Like Like |Link to Comment
  • The High Price Of Owning Tesla [View article]
    Buy, buy, buy... that is until the company goes bankrupt and you lose everything.
    Jul 11 12:20 AM | 1 Like Like |Link to Comment
  • The High Price Of Owning Tesla [View article]
    "Best way to describe them is like fireworks."

    That was hilarious!
    Jul 11 12:17 AM | 1 Like Like |Link to Comment
  • An Undiscovered Brand With Improving Margins And Strong Growth [View article]
    MusclePharm is an outstanding business. It might be undiscovered by most investors, but I can assure you this company is definitely not undiscovered by those, like myself, who are involved in fitness/sports. Once the stock gets uplisted it could easily double from today's price of only $12/sh.
    Jul 9 07:56 PM | Likes Like |Link to Comment
  • The High Price Of Owning Tesla [View article]
    I bet against stocks using options (risk is limited, payoff is higher). I have enough money and patience to wait a decade for a bet to pay off. I never try to predict when a fragile bridge (stock price) will collapse, but I know that it will eventually. I place small, continuous bets for a very long time. When the payoff does occur, it is enormous and more than covers my small losses.
    Jul 1 01:10 PM | 1 Like Like |Link to Comment
  • The High Price Of Owning Tesla [View article]
    You can add Microsoft to that group as well. The stock is still below its all time from the late 90's tech bubble.

    To be clear, I understand what Tesla investors are saying. Tesla has enormous growth potential and is run by a very talented CEO. I other words, a company like this deserves higher valuation multiples. However, there is still a limit to everything, and paying $30 billion (current market value) for Tesla is way too much, in my opinion.
    Jul 1 01:03 PM | Likes Like |Link to Comment
  • The High Price Of Owning Tesla [View article]
    I agree, demand is strong and customer loyalty is high. However, the fair value of every company, including Tesla, is the future cash flows it generates discounted to the present. Given that this is a hugely capital intensive industry, the future cash flows Tesla generates will very likely be disappointing and wont justify the current valuation. Car companies are no different from airlines: both revolutionized the way we travel, however, over the long-term they both are terrible investments.
    Jul 1 12:57 PM | Likes Like |Link to Comment
  • The High Price Of Owning Tesla [View article]
    embryorambo,

    You make a very good point. Many times it's the second-mover than ends up dominating the market. People seem to forget this fact.
    Jun 30 10:23 PM | Likes Like |Link to Comment
  • The High Price Of Owning Tesla [View article]
    Peter,

    You mentioned that "The vast majority of the stock seems to be owned/traded not by "endowment effect" or by "not rational buyers", but by investment professionals, or by people with insight in the company."

    So you mean to tell me that investment professionals are always rational? Then why do we have bubbles? Explain the dot-com bubble, the housing bubble, etc... all of these bubbles were created by these so called "investment professionals."

    Let me tell you something, these "investment professionals" are just as irrational as everyone else. In fact, I have worked with many of these investment professionals, and let me tell you something... most of these people are empty suit charlatans!

    I once worked with a star Wall Street analyst (this charlatan won many awards), when valuing companies, for example, he would come up with the fair value in his head and then he would play around with the DCF models, as well as other valuation models, to match that arbitrary value he came up with. He is not the only one, many other of these investment professionals did the same thing.

    What I am trying to say is that we are all humans, and as humans, we have many biases and make all kinds of mistakes. When it comes to investing, I don't fully trust anyone (not even myself), but at least I am willing to admit that.

    These crazy Tesla bulls have so much faith that Tesla will be the most profitable company ever... but we have seen zero evidence of this as of yet. Don't get me wrong, I want Tesla to succeed, but the odds are stacked against the company in the long-term. Some investors will have to learn this the hard way it seems.
    Jun 30 10:11 PM | 1 Like Like |Link to Comment
  • The High Price Of Owning Tesla [View article]
    TSLA makes up 100% of your portfolio???? You must be crazy!
    Jun 30 01:17 PM | 1 Like Like |Link to Comment
  • The High Price Of Owning Tesla [View article]
    Couldn't have said it better myself! There is no doubt about it, Tesla makes great cars. However, the stock is still extremely overvalued and a terrible long-term investment.
    Jun 30 09:53 AM | 2 Likes Like |Link to Comment
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