jawn619

Got a few messages about it. Posting this here for those who are interested. https://raritan.lpages.co/register-my-ria/

I remember a few people were looking to register as an RIA. I went through the process, have an RIA with $500k of AUM and was thinking of starting a business like RIA in a box that helps others do it too (but for a fraction of their price). I've found that having an RIA and real track record via smas to be the easiest and cheapest way to great credibility when in front of allocators. Wanted to see if anyone had interest or questions on the process.

+1 same

Any type of deferred revenue business where cash is collected before the service is delivered serves as a mini float.

http://raritancapital.com/wp-content/uploads/2016/11/MixT.pdf Mix Telematics

http://raritancapital.com/wp-content/uploads/2017/01/Q4-2016.pdf

+1 great explanation

Also, his plan will tax carried interest as ordinary income. He's helping the middle class more than you think.

Trump's tax plan to lower corporate tax rate. Lower tax expense = higher net income. Higher net income = more cash flow. More cash flow = more valuable businesses. https://www.donaldjtrump.com/policies/tax-plan This has nothing to do with economic stability, his moral ineptitude, or how he's going build a wall.

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Best Book Ever The_Memoirs.pdf

Awesome!

Stocks. Cash.

pleased to share our Q3 letter. http://raritancapital.com/wp-content/uploads/2016/06/Q3-2016.pdf Also added some ideas http://raritancapital.com/ideas/ Thanks to everyone on the board for their continued support!

https://www.youtube.com/watch?v=6PZziZjlUmM Enjoy

Can you give details in your scuttlebutt approach? I'm curious about if anyone has a systematic way of doing it. My main question is... with so much to do and so little time/effort/attention, how to do leverage your time talking to suppliers,customers, former employees, etc.

It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat. - Teddy Roosevelt

+1 I have nothing to add. except for his most recent letter! 2016-09-01_Askeladden_Capital_Q3_Letter_-_Lucky_or_Smart_FINAL.pdf

The kid has Chutzpah, for sure. 2016-08-23_Askeladden_Pitchbook_4b56c895b7.pdf

Jacob Wohl's getting so much attention, and so is the young hedge fund manager cracking the code to private equity, but here is Samir Patel, only a few years older than the Wohl of wall street. I like the guy, and think he's going places. http://seekingalpha.com/article/3991141-interview-samir-patel-founder-askeladden-capital 2016-07-01_-_Askeladden_Capital_-_Q2_2016_Letter_7f653983ef.pdf

Is this EV/EBITDA or P/EBITDA? P/EBITDA It's EV/EBITDA. Comparing price to EBITDA is like comparing apples to oranges. He uses both FCF to equity and EV/EBITDA as metrics. I've read his writeups on Sumzero. They're pretty good. Clear thinking.

As for whether or not to reduce OCF for acquisition costs, you shouldn't because those costs are already taken out in calculation of net income. Maybe I'm misunderstanding this part. Do you mean once the acquirer consolidates the acquiree's operating business? Because as far as I know, there's no hit to income for the cost of the acquisition (save for some restricting charges or the like). It's mostly the balance sheet which is affected, and then costs are capitalized in future periods. What do you mean by acquisition related costs? If you mean hiring an investment banker, doing due diligence, and costs integrating an acquired company, it does hit net income via SG&A.

Sorry I didn't mean to imply anything about whether or not you take shortcuts. I think your question was regarding acquisition costs and how they affect free cash flow. Let me give an example to illustrate what I'm talking about Let's say a company's FCF is $8M this year but they incurred $2M of acquisition related costs. Now you think the company is worth 10x FCF, should you put a multiple on $8M or $10M? I would say put it on the 10 because when you put a multiple on something, you are doing a DCF in disguise. Meaning you should put it on the 10 unless you think that $2M of costs is going to repeat every year. As for whether or not to reduce OCF for acquisition costs, you shouldn't because those costs are already taken out in calculation of net income.

Depends on how you want to use free cash flow. If you put a multiple on it, you are doing a shortcut for a DCF, which means you shouldn't include it unless you think it will be an ongoing expense.

http://walkingdead.wikia.com/wiki/File:Shut-up-and-take-my-money.jpg