Our Passion is Research

Original research is our springboard, where everything begins, from building on our expertise in five disrupted verticals, to analyzing and classifying business models, and finally, to picking stocks.

We don’t publish our research on specific companies or industry groups, but we do publish what we uncover on owner-related issues such as buybacks and executive incentives.

Theory AND process are important

As a “shortcut to value,” the PE ratio and other Wall Street standards used to work well – back when verticals were stable and largely industrialized. Enter disruption, and, all of sudden, business models designed around optimizing quarterly earnings are at a disadvantage.

Disruption creates a land-grab environment where young upstarts and their anything-goes mentality have a real chance to succeed. Product beats PE ratios, or, put another way, the ability to satisfy the customer’s value proposition often represents more long-term value than last year’s operating metrics.

Thinking like engineers

We can’t cover every industry group and we can’t cover every stock. Which makes how we go about our business critically important. To help us focus on what’s important, we have our own classification system, which includes original theory on business model design.

From an engineering perspective: How does this particular business model work? What are the inputs and outputs? How does it fit the vertical in which is competes, and most importantly, how well does it meet the customer’s value proposition?