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Recent Insights


April 5, 2021

Is it still the year of not good enough?We concluded our year-end 2020 investor memo by saying that 2021 will be “the year of not good enough.” This does not

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March 15, 2021

Think of a company’s stock market capitalization as the present value of investor expected future cash flows. There are two ways this number can rise or fall. The first is

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March 9, 2021

By Bradford Cornell, Rob Arnott, Lillian Wu If a capitalist had been present at Kitty Hawk back in the early 1900s, he should’ve shot down Orville Wright; he would have

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March 1, 2021

Many of today’s investors, particularly the young aggressive Robinhood types, want big returns, and that is something more than the stock market, or the average stock, can provide. Read the

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Featured Publication


By Bradford Cornell, Rob Arnott, Lillian Wu If a capitalist had been present at Kitty Hawk back in the early 1900s, he should’ve shot down Orville Wright; he would have saved his progeny money.                                                                                                    —Warren Buffett  Our objective is always to build big companies—if you don’t attack a big market, you’re highly unlikely to build a big company.                                                                       —Don Valentine, Founder of Sequoia Big markets have a special allure for investors. They offer the promise of another Apple, Google, or Microsoft. But big markets also bring with them the threat of what Cornell and Damodaran (2020) call “the big market delusion.” Big market delusions generally begin with innovation or disruption that opens a new market, such as

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