Weirdly I want to do more research into ponzis now. Also, I am looking at ESG Global Impact Capital. Any tips for researching an asset management company? I know that since the assets are mostly people, I heard people say the line “the ROE could be infinity and beyond,” there is operating leverage because of fixed costs, and if revenue d…
Weirdly I want to do more research into ponzis now. Also, I am looking at ESG Global Impact Capital. Any tips for researching an asset management company? I know that since the assets are mostly people, I heard people say the line “the ROE could be infinity and beyond,” there is operating leverage because of fixed costs, and if revenue drops, the bottom line drops like a stone. But what else am I missing here? Any known accounting shenanigans with these companies? And also, if the assets are people, how can you do due diligence on them? How could I call someone who knew them in college or something and ask: was this person a douche-canoe? Also, what might signal the employees (read assets) can't leave? I remember a company Michael Burry invested in, and it worked because all the employees were Chinese Nationals, and therefore the most important asset could not leave. I think it was a software company. Also, thank you so much Andrew, for the article. :) Happy Bargain Hunting, and stop eating ice cream.
Weirdly I want to do more research into ponzis now. Also, I am looking at ESG Global Impact Capital. Any tips for researching an asset management company? I know that since the assets are mostly people, I heard people say the line “the ROE could be infinity and beyond,” there is operating leverage because of fixed costs, and if revenue drops, the bottom line drops like a stone. But what else am I missing here? Any known accounting shenanigans with these companies? And also, if the assets are people, how can you do due diligence on them? How could I call someone who knew them in college or something and ask: was this person a douche-canoe? Also, what might signal the employees (read assets) can't leave? I remember a company Michael Burry invested in, and it worked because all the employees were Chinese Nationals, and therefore the most important asset could not leave. I think it was a software company. Also, thank you so much Andrew, for the article. :) Happy Bargain Hunting, and stop eating ice cream.