Disney’s Two Paths
We see two paths ahead for Disney: Either the company should compete head-to-head with Netflix using a consolidated streaming platform, or it should divest Hulu and ESPN to focus on the franchise content that makes it special. The company could be successful on either path, but trying to straddle both is not working.
Why You Need An Estate Plan
No one wants to think about their own death, yet none of us will live forever. Creating an estate plan is an unpleasant but necessary part of being a responsible adult. We can’t know when our time is up, but we can control whether we help our loved ones or leave them with a financial mess.
The AI Revolution
Artificial intelligence promises to be the most disruptive technological innovation since the Internet. We discuss opportunities and risks across a variety of industries, including online search, semiconductors, cloud computing, software, design and creativity, customer service, and logistics. We also offer some thoughts on what AI could mean for the labor market.
CarMax, Carvana, and the Future of Used Car Retail
Carvana hoped to disrupt used car retailing, but it never established a sustainable brand or cost advantage. We see five lessons from Carvana’s experience, including that tactics aren’t a moat. We prefer CarMax: The company has made aggressive investments in its own e-commerce platform, but with superior scale and omnichannel fulfillment.
Investors are panicking about competitive threats to Meta’s core business, and the tens of billions of dollars management is spending (wasting?) on its metaverse initiative. We see reasons for optimism, and the valuation is deeply depressed. But we’re wary of the lack of checks and balances on CEO Mark Zuckerberg.
Which Stocks Are Best Positioned for Inflation?
Inflation represents one of the biggest long-term risks facing investors, and we want to own assets that can grow their intrinsic values even in an inflationary environment. Contrary to conventional wisdom, we think stocks can be an excellent inflation hedge, especially if the companies have these three characteristics.
Google and Growth
Alphabet (Google) is a classic example of what we look for in a stock: rapid, long-lasting growth, a widening economic moat, and a reasonable valuation. We think the stock could double over the next five years.
Why Market Timing Is a Bad Idea
We think market timing is a mistake, for three reasons: (1) Long-term returns in the stock market have been very good, and time is on your side, (2) There is an inverse relationship between valuations and future returns, and (3) Past bear markets show how difficult it is to get the timing right.
Welcome To Moatiful
Welcome to Moatiful, a new blog from Trajan Wealth. Moatiful is written by Matt Coffina, portfolio manager of Trajan’s Expanding Moat and Defensive Moat strategies. We seek companies with strong and improving competitive advantages, above-average revenue and earnings growth, and reasonable valuations. We hope you’ll consider subscribing.