August 22, 2020

Verisign: The Lollapalooza Business Case Study

Disclaimer: The views expressed here are mine and may change without notice. Past performance is not indicative of future results. All investments carry risk, including financial loss. This analysis is for educational purposes only and does not constitute investment advice or recommendations of any kind. Conduct your own research and seek professional advice before investing. Please see important disclaimers here and here.
________________________________

"When several models combine, you get lollapalooza effects; this is when two, three, or four forces are all operating in the same direction." - Poor Charlie's Almanack 

This post is a write-up on a company I highly admire, and I believe business schools should teach Verisign (VRSN). It is a near-perfect example of extraordinary business success when multiple mental models are all working in the same direction. I could figure at least eight mental models in the case of VRSN.

June 20, 2020

Delaying Bad News

Disclaimer: The views expressed here are mine and may change without notice. Past performance is not indicative of future results. All investments carry risk, including financial loss. This analysis is for educational purposes only and does not constitute investment advice or recommendations of any kind. Conduct your own research and seek professional advice before investing. Please see important disclaimers here and here.

________________________________

Defined Benefit plans are things of the past for most people. But, not for investors. Roughly 20 companies in Dow 30 and more than 300 companies in S&P 500 indices still have such plans. Thus, these companies need to record pension expenses in financial statements. A company’s management uses various assumptions in calculating pension expense. What is the impact of these assumptions on the company's profits? Can these assumptions tell something about management? Let's look here.