Practical and sharp - especially the push beyond spreadsheets into real-world validation.
That said, it reads closer to an ideal playbook than a repeatable process. For most investors, the challenge isn’t knowing the steps but executing them without bias or overconfidence.
Still, a strong reminder: good investing starts where comfort ends.
Great post, thanks for sharing. Always interested in different perspectives on this - how do you think about stock-based compensation when assessing profitability and valuation?
That’s… complicated. In most cases, stock based comp comes with dilution, but some companies like Constellation, do pull off buybacks before the compensation. On the one hand, you want alignment, so ownership is good, but excessive use of shares and options does punish us investors
Practical and sharp - especially the push beyond spreadsheets into real-world validation.
That said, it reads closer to an ideal playbook than a repeatable process. For most investors, the challenge isn’t knowing the steps but executing them without bias or overconfidence.
Still, a strong reminder: good investing starts where comfort ends.
It is a toughy for most people… that’s why it’s a full time job IMO
Great post, thanks for sharing. Always interested in different perspectives on this - how do you think about stock-based compensation when assessing profitability and valuation?
That’s… complicated. In most cases, stock based comp comes with dilution, but some companies like Constellation, do pull off buybacks before the compensation. On the one hand, you want alignment, so ownership is good, but excessive use of shares and options does punish us investors
I am a beginner so this is valuable info!
Take it for a spin and get back to me with any questions/comments. Looking forward to growing together