Takeaway: companies are significantly more profitable today than in the dot com crash. In Q4 ‘99 21 companies were unprofitable. In Q4 ‘25, only 1 company was unprofitable.
Takeaway: Good read, mostly philosophical. AI’s bubble and eventual crash are necessary to complete infrastructure investment, discipline capital, and create the political urgency to rebuild institutions. The key question is whether it produces a golden age or a depression - the outcome depends on preparations made beforehand. Society should spread ownership of AI’s productive capacity through open models, affordable compute, and decentralized equity, while building safety nets and a compelling vision of human purpose before the crash arrives.
Takewaway: A clickbaity headline - basically recapping how much hyperscalers are spending on capex. Maybe that investment is crowding out other parts of the economy. Analysts now estimate that capital spending at five of the hyperscalers, Alphabet, Amazon.com, Meta Platforms, Microsoft and Oracle, will come to nearly $4 trillion over the four years ending in 2029, according to FactSet.
Takewaway: Mauboussin is required reading. Kinda like Buffet, the more you read the better off you'll be.
Operating margin β has a few practical uses. The error in forecasts tends to be larger in sectors and industries where the operating margin β is high. For example, earnings surprises are large in the metal industry but small in the food industry. Many financial models that analysts build suffer from linear extrapolation. Quality modeling recognizes the interactions between sales growth, profitability, and financial leverage.
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For informational purposes only — not investment advice.