ASML Holding N.V. (ASML) is a business based in the Netherlands that defines “high quality.” As the sole provider of the lithography machines required to manufacture the world’s most advanced semiconductors, ASML’s business model is centered on its role as the exclusive provider of the world’s most advanced lithography systems, which are essential for manufacturing of nearly all modern microchips.
Early in my career as a practicing lawyer in Los Angeles some 25 years ago, I used to look forward to receiving the print subscription of the Daily Journal which lays out all the new appellate cases by practice area. However, as the years passed and technology advanced, I found easier ways of accessing those cases online. The story of the Daily Journal Corporation (DJCO) is a classic demonstration of legendary investor Charlie Munger’s capital allocation genius and strategic foresight.
A lot of people have a grand idea about the next big thing, and they'll get all worked up about a company's past successes and future projections. The truth is, the world is full of companies that had a good run but couldn't keep it up. What's important is the business itself, its competitive position, and the people running it. Let's take a look at Adobe, a company that has been a long-time fixture in the world of creative software.
Is Arista Networks a great business? Arista Networks is a business that reflects solid business fundamentals and consistent revenue and operating income growth since it became a public company in June 2014. It is therefore worth taking a further look into this business. Simple business models with a long track record are more predictable and less likely to be subject to disruption. Arista does not operate a simple and predictable business. It is a networking equipment provider.
The purchase of See’s Candies by Berkshire Hathaway was one of the first deals in which Warren Buffett learned how to pay up for a great business. Prior to that, most of Buffett’s deals involved buying not so great business for a wonderful price sometimes referred to as “Cigar Butt Investing.” See’s Candies also taught Buffett the power of a brand as a moat.
Many investors focus on investing in companies that pay out high dividends. Senior investors love dividend investing because they can live off dividends during retirement.
When the Federal Reserve (Fed) decides to lower the federal funds rate, it often sparks significant reactions in the stock market. The Fed has a dual mandate which is to promote maximum employment and stable prices.
