(Expanded from April 9, 2025)
"We think they are days from failure. They think it is a temporary problem. This disconnect is dangerous."
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If you’re going to invest in specific securities it is very likely that you will not simply examine a single security/company, but that you ...
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In these past couple of chapters Graham has started to open the toolbox and discuss some of the tools of ‘Security Analysis’. While we ha...
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After delivering the parable of Mr. Market, Graham moves to a chapter titled ‘Investing in Investment Funds’. At first blush it seems lik...
Edward Quince’s Wisdom Bites: Are You Intelligent? Chapter 19
As we proceed, Graham turns his attention to the role of shareholders’, specifically that they are owners of the company. In the role of ...
what does Edward Quince think of RPOs and circularity in the AI/highly levered data center sector?
ReplyDeleteRPO's were innovative in the NFL a few years ago, less so now, but still can work well with the right personnel grouping....sorry, you wanted Remaining Performance Obligations...and in the long-run isn't the entire economy a circular flow model (at least accounting wise)? Edward is smart enough (barely) not to venture outside his circle of competence, which does not include the intracies of data center deals...but he thinks the question behind the question boils down to a question of whether or not the AI/data center ecosystem is generating claims on future income faster than it's ability to generate that income...it's timing and whether the spend is "productive"...and who absorbs losses if it all fails to deliver?
ReplyDeleteEdward goes back to thinking about General Equilibrium models, which assumptions fail and why, opens up something by Keynes, who stabilizes the broken circle? Turns to Fisher for debt deflation, wonders what Minsky would think, does the circle just depend on asset prices and not income anymore? There's no precision in any of this, just uncertainty...where's the humility?