The following are a selection of quotes and my thoughts on the investment classic, Reminiscences of a Stock Operator. The book, written by Edwin Lefèvre and published in 1923, is thinly disguised biography of Jesse Livermore, a legendary speculator. Although written nearly a century years ago, this book remains a must read for serious students of the market. Over the years, I’ve been asked many times how one could break into the hedge fund industry, and I always point them to this book due to the timeless insights it offers into the art of speculation. I recommend readers read between the lines rather than take everything literally or as gospel. For example, the greatest unstated lesson of the book is the importance of risk control so to build a sustainable trading practice. Though the book ended on a high note, it was plain as day that, without robust risk management, Jesse Livermore would end up broke once again. In fact he did: Livermore went broke in the 1930’s and committed suicide in 1940 at the age of 63 — truly a tragedy that could be avoided. Nevertheless, this book offers invaluable insights to all serious market participants.
- Q1 results confirmed our bullish thesis on Amazon’s advertising business.
- Amazon has been making bold moves in the advertising space.
- Amazon has massive advantages in advertising and could rival and potentially surpass Facebook and Google.
- Amazon, Alphabet, Microsoft and Facebook’s Q1 weighted-average capex exceeded consensus by 40%.
- We expect accelerating capex investments to continue since it is part of a broader trend.
- This trend raises multiple questions for investors. In this article, we raise two.
- Amazon is reporting Q1 2018 earnings soon, and we are excited to learn more about its emerging advertising business.
- Amazon’s digital advertising is not broken out in filings, and is not well covered by the media, but the company is becoming a serious contender in this space.
- We believe this unappreciated business could be worth $300 per share, or 20% of Amazon’s current value.
(This is a reprint of my SeekingAlpha article, which is now behind a pay walled.)
- Trump pressures USPS to raise rates on Amazon, but his case is weak.
- Amazon is well positioned to win this battle.
- Q1 earning is coming: buy the dip on a potential acceleration in investments.