September 30, 2023

Amortization Accounting

Blindly following conventions is the enemy of reality. When companies or investment professionals add back certain expenses such as stock-based compensation they want you to accept concepts that are dangerously defective.

September 22, 2023

Insurance Float's Underappreciated Value

It is no longer a secret that upfront premiums collected by insurance companies, called float, help their profitability. The additional investment income adds to the earnings. But the degree to which an insurance company's worth increases during a high-interest rate period, like now, is still imperfectly understood.